What’s the Difference Between a Will and Estate Planning?
People often think having a will and estate planning are the same.
Unfortunately, they’re not.
Each has its purpose and function, and both are equally important. If you live near McHenry, IL, and need a last will and testament or your estate plan, Diamond Legal can help you understand the differences between the two and which one is right for you.
What Is a Will?
A will, otherwise known as a last will and testament, is a legal document that discusses the terms surrounding your death.
It can outline how you would like your property or assets divided and the care you would like for your dependents.
It goes into effect once you die (after a brief period where it is processed and reviewed by the probate court).
Diamond Legal can set up your will – ensuring it details your wishes and protects your legacy.
What Is Estate Planning?
Estate plans include your last will & testament, but it also contains other beneficial documents to you and your family. It can include:
- Beneficiary designations,
- Powers of attorney,
- Advanced health care directives,
- A letter of intent, and even
- Access to your digital assets.
An estate plan is far more comprehensive than just a will & testament. And it usually contains a trust (or multiple trusts) which Diamond Legal clients find preferable to a will alone.
What Is a Trust?
Diamond Legal can also help you set up various trusts – which are similar to a will in that they detail the wishes you have for your assets.
Like a will, a trust can outline your dependent’s care (as well as their access to their inheritance).
There are many different types of trusts to choose from. However, they mainly fall under two categories:
- Revocable Trusts – otherwise known as living trusts, which can be changed and transferred through to your death
- Irrevocable Trusts – which are set in stone once completed.
Families in the McHenry Illinois area often choose to set up a trust (or trusts) because a trust never goes into the probate court, unlike a last will and testament. So, any property or assets listed within your trust remain private.
Why Do You Need to Set Up a Last Will and Testament as well as an Estate Plan?
In Illinois, if you have over $100k in assets and pass away without an estate plan, the probate court will determine how to split your assets (and charge your estate a hefty fee). This means that:
- Your estate is no longer private.
- Your assets may not end up as you want them to be.
- Your business and the equity within it could suffer, and
- Your family may be left with hefty bills to pay.
An estate plan developed by the experienced attorneys at Diamond Legal can help protect your assets, legacy, and loved ones by ensuring the necessary documents are in place.
Set Up an Estate Plan with Diamond Legal Today
Here at Diamond Legal, we help families in and around the McHenry, IL area set up their estate. No matter how big or small your estate is, creating a last will & testament and an overall estate plan is the best and most loving course of action to protect those you love. Contact our office today to learn more.
DISCLAIMER: Any information contained herein is solely for informational purposes. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, we urge you to contact a local attorney for advice pertaining to your specific legal needs.
