These two terms may seem a bit confusing. What exactly is estate planning and financial planning? Estate planning refers to those strategies, techniques, directions and decisions that a person should take in order to ensure the continuity of his affairs after his death. Financial planning, on the other hand, pertains to those strategies, techniques, directions and decisions that people should take in order to ensure their financial success upon their death. Both of these terms are used interchangeably throughout the world and their meaning may not be the same as one another.
Many people believe that estate planning only involves putting together all the family’s financial documents, creating a will, and then making funeral arrangements. This is not always the case. The term estate planning actually refers to many processes. It also takes into consideration the legal documents that may be needed such as wills, trusts, and retirement accounts among others. In some cases, a financial planner may also be referred to as an estate planning attorney. While many people think that these terms mean the same thing, there are actually some differences between these two legal documents.
What is estate planning? An estate planning attorney helps you to organize your assets in the event that you pass away. This may include passing down your belongings to your children or relatives. It could also involve turning your property over to your beneficiaries. One of the many goals of financial planning is to ensure that your beneficiaries will still have access to all of your assets and monies even if you are no longer around to make financial decisions for them.
As someone who has been through the process of estate planning, I can tell you that it is not always about turning over your properties to your family. If you are mentally incapacitated, you must have your affairs in order and the process must begin as quickly as possible. If you do not have the mental ability to manage your assets, you will want to consult with an experienced estate planning attorney. They can help you to determine what steps to take in this situation.
Another question that people often ask is, “When will my beneficiaries receive my estate?” If you die before your beneficiary has reached legal age, they will most likely not receive anything. Even if they do receive something, it might be from a probated settlement or trust. If they do receive some of your assets, it could be a very small amount. This is why it is so important to utilize a financial professional if you are seriously considering having a plan put in place.
Some estate planning scenarios include minor children and parents becoming incapacitated. In instances like this, your attorney can help you create a durable power of attorney that allows someone to make decisions on your behalf when you are not physically able to do so. A skilled estate planning attorney will also be able to provide you with advice on how to deal with the probate process when you pass away.
Estate taxes and planning are not the only issues that an estate planning attorney can assist you with. They can also assist you with making sure that your minor children receive the education that they deserve. This includes enrolling your minor children in community schools and colleges. If you have a substantial amount of property at your disposal, you may also wish to consider making a trust and leaving your real estate assets in that trust. The same holds true for educational funds and retirement accounts.
Although you may think that the day is coming when you won’t need an estate plan or financial planner, it is always wise to protect your assets. You never know when something may occur that would cause you tremendous financial strain and pain. An attorney can help you keep everything under control. Even if you only have minor financial problems now, they may later on. They can also make sure that your asset owners are being treated fairly in any divorce proceedings and that their tax returns are being viewed for accuracy.