What is the difference between Estate planning and drafting a Will?

Many people believe Estate planning and drafting a will are interchangeable, but they are most definitely not!

Estate planning refers to a comprehensive plan of action for the growth of your estate, which applies during your lifetime and after your death. This process of planning includes drawing up documents, such as a Will, Powers of Attorney, Advance directives (a Living Will), which will detail your decision about life-prolonging treatment and creating “vehicles” such as Trusts.

Drawing up your Will is therefor only one component of your Estate planning, which will become effective after your death. Your Will states where you want your assets to go at your death, who you would like to serve as guardian and Trustees of your minor children and also names an executor who will be in charge of distributing your assets to the right people or charities.

Why should I do Estate planning?

By planning your estate, you will ensure that possible financial risks are avoided and income tax payable, capital gains taxes and estate duties are minimalized. This process, if properly done, will ensure that there are enough funds available to meet your estate’s financial obligations upon your death and ultimately ensures that the Beneficiaries’ inheritance is sufficiently protected for them, especially your younger children.

A comprehensive estate plan will provide you with peace of mind and lessen the burden on your loved ones during a very difficult time.

Please contact us if we can assist you in any way.