How to Protect Your Children: Things to Know About Wills vs Estate Plans

Raising children is no easy task - it requires a great deal of time, energy, and resources. 

Along with providing your family with physical necessities like food, clothing, and shelter, comes the financial responsibilities to ensure your children’s future well-being after you have moved on from this life.

This includes making decisions about the best ways to protect them with the right estate planning documents. 

To help make sure that you pick the best options for your family's unique situation, it's important to understand the differences between Will and Estate Plans.

Knowing what they offer (and don't) can help bring you some peace of mind no matter what happens. 

What is a Will?

A Will is a legally binding document that you can use to dictate how your possessions, money, and other assets should be distributed after your passing. 

It’s written in accordance with the law of the state you reside in, which is why it’s important to make sure that any Will you create is valid according to those standards. 

Not only do Wills protect the owner’s wishes and allow them to outline beneficiaries as well as their estimated share of the estate; but they also help ease any burdensome taxes or administration costs associated with their final affairs when dealing with dependents and valuable assets. 

Keep in mind that whether or not a will is public, generally depends on the state in which it has been filed.

Some states require that a will be made public upon probate, while others allow them to remain hidden from the public domain. 

What is an Estate Plan?

An Estate Plan goes beyond just distributing assets.

It covers all aspects of life after death, including taxes, Wills, investments, property and real estate, medical decisions, digital assets, health care costs, and more.

Estate Plans often include documents such as powers of attorney and living trusts that allow you to control who has access to your finances and other important information in case you become incapacitated or pass away unexpectedly. 

An Estate Plan allows you to keep these matters private and out of probate court proceedings.

Who Should Create an Estate Plan?

Estate Planning isn’t just for those with millions in their bank accounts; it’s for everyone with assets and dependents—even those who already have a Will in place! 

It doesn’t matter how much money or property you have; it only matters that those assets are protected from creditors, taxes, and other potential issues down the line. 

Knowing the difference between a Will and Estate Planning can help secure your future, and that of your beneficiaries. 

Having an established list of wishes helps ensure that you are taken care of and that your affairs are in order should anything ever happen to you. 

As with any financial decisions accuracy and care when creating such plans is absolutely key so make sure to seek advice from qualified professionals for this most important endeavor.

Need help preparing a Will? Have questions about Estate Planning? Contact our office today. Our team is here to help lift some of the burden!

DISCLAIMER: The content contained herein is for general informational purposes only.  These materials do not constitute legal or other professional advice.  We do not accept any responsibility for any loss that may arise from reliance on this information.  No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.