Often, the terms “estate planning” and “financial planning” are used interchangeably. However, while financial plans and estate plans sound similar, they serve different purposes. Attorney Melissa Barry wants to make estate planning as simple as possible for you, so to help you understand the process, here’s a look at the main differences between estate planning and financial planning.
Estate planning determines what should happen to your assets, such as your home and investments, when you die.
The documents included in an estate plan can include:
- Will: This document sets out what will happen to your assets and who should care for your children.
- Power of Attorney: The PoA designates the person who will make medical or financial decisions for you if you’re unable to.
- Trust: A trust is a legal arrangement for managing certain assets on behalf of your beneficiaries.
- Medical Directive: A directive names the person who can make medical decisions for you under certain circumstances, and may include instructions regarding end-of-life care.
An estate plan helps to protect your family in the long run.
Financial planning is about building your wealth. It involves assessing your current financial situation and deciding how to meet business and personal goals such as:
- buying your first home
- starting a business
- planning for retirement
- investing in new opportunities
You don’t need to be wealthy to benefit from financial planning. It’s a good idea for anyone who wants to make well-informed financial decisions.
Estate Planning vs. Financial Planning
Financial planning helps you grow your wealth, while estate planning allows you to manage that wealth and decide how it’s distributed when you pass away.
If you have questions regarding estate planning, please contact our team for more details.
At Ease Law | Estate Planning Attorney
Whether this is your first estate plan or you’re updating an existing plan, Melissa Barry is here to assist. She can help you set clear estate planning goals based on your objectives, and she’ll tailor your plan to suit your needs.