Creating an estate plan can be an overwhelming process, with many people unsure what the difference is between a will and an estate plan. Understanding the distinction between these two important documents can help ensure that your assets are distributed according to your wishes when you pass away or if you are incapacitated. 

What Is a Will?

A will is a legal document outlining how your estate should be divided and managed upon your death. A will typically states how you want all of your assets to be distributed and outlines any guardianship arrangements you have made for any minor children. It also names a Personal Representative who is responsible for ensuring that all of the instructions in the will are followed.

What Is an Estate Plan?

An estate plan is more comprehensive than a will. Estate plans will include a will as well as other important documents. An estate plan typically includes a will, power of attorney documents, and personal directives. While wills only take effect upon death, elements of an estate plan such as personal directives and powers of attorney documents become effective while you are still alive but unable to make decisions on your own due to being incapacitated. Personal directives are used for health decisions when you are alive but not capable of making your own health decisions, while power of attorney documents deals with your finances when you are not capable of managing your own money. 

Estate planning is an important part of preparing for the future and ensuring that your loved ones—especially minor children—are taken care of if you are no longer able to do so. Estate planning may include setting up a trust fund, making provisions for guardianship, or creating powers-of-attorney documents in case of incapacitation. Making sure that these matters are addressed provides peace of mind knowing you have done what you can to provide for your children's needs even after you are gone.

What Are the Benefits of Having Both?

Having both a will and an estate plan helps to ensure that not only are your assets distributed properly after death but also that any medical decisions that need to be made on your behalf during life are made in accordance with your wishes and desires. Having detailed documentation about how you want your finances handled both before and after death helps to protect yourself and those left behind from financial hardship or from making decisions you would not have wanted them to make on their own.

The Bottom Line

An experienced attorney can guide you through creating an appropriate estate plan for yourself and/or for other family members so that everyone’s needs are taken into account both now and in the future. At Sinclair Law Office, we understand how planning for death or incapacity can be difficult even painful conversations—but they don’t have to be when done with knowledgeable guidance by experienced professionals who understand what matters most to families like yours. 

Sinclair Law Office can help guide you through these processes to give you peace of mind and ensure that your loved ones are taken care of after you die. Please schedule an appointment online or by calling our Edmonton office at 780-229-3533.