January 12, 2024

Will Planning vs Estate Planning: What's The Difference?

Will Planning vs Estate Planning: What's The Difference?

The main difference between will planning and estate planning is that will planning outlines the distribution of your assets upon your passing, while estate planning covers how your assets and wealth will be managed on your behalf when you’re alive and after your demise.

Both processes are incredibly important aspects of managing one's finances. As private wealth managers at Melbourne Capital Group, we have helped clients from all walks of life in managing their wealth and ensuring its smooth transition to the next generation.

Before we move on, if you are a British expatriate or have assets in the United Kingdom worth over £325,000, join us for our British Inheritance Tax seminar this 22nd June 2023. Our estate planning specialist, Jamie Bubb-Sacklyn will be there to answer all your questions on reducing your inheritance tax. 

Jamie Bubb-Sacklyn, chartered financial planner at melbourne capital group presenting inheritance tax seminar

This article will cover:

  • What does it entail to have a compliant Will?
  • What is estate planning?
  • How are these two processes different

What Is Will Planning?

Will planning can be a relatively simple process that involves drafting your last will and testament. It allows you to express your desires on how you wish to distribute your assets to your loved ones after your death. 

Suppose you fail to plan a Will before your death, you’ll leave nothing legitimate behind to ensure your wishes are executed or fulfilled properly. In this case, judges or state officials will take over decisions about your asset management, which will put your family and heirs in even more distress. They need to spend more time, money, and emotional energy settling the affairs left behind. 

While no single document can solve every potential issue, especially those related to wealth and property distribution, a well-written Will can come close.

Here are the benefits a well-drafted Will provides:

  • You decide who receives your assets after your death. This gives you control over who gets what and how much.
  • You can choose to exclude certain people from having your assets or property.
  • You can choose who will look after your children or dependents. If this is not specified in your Will, this will be determined by the legal system they reside in.
  • Your heirs will have quicker and easier access to your assets.
  • You can plan to save money on taxes for your wealth. You can also make gifts and charitable contributions to help offset the property/wealth tax.

Simply put, Will planning puts you ahead of time and gives you control over your asset distribution after death. If you're looking for a will writing service in Malaysia, Contact Melbourne Capital Group. 

What is Estate Planning?

Estate planning allows you to document your wishes on how to preserve, manage, and distribute your wealth in the event of your death or incapacitation. 

If you're wondering what comprises your estate, the list can be exhaustive, but these are the common elements of your estate: 

  • Houses.
  • Cars.
  • Stocks.
  • Artwork.
  • Life insurance.
  • Pensions.
  • Debt.

Your estate is your net worth; estate planning allows you to preserve your wealth, provide for your spouse or children, fund your children or grandchildren's education, and even leave a charitable legacy. 

Will planning is a component of a comprehensive estate planning strategy. The following steps are key in planning your estate:

  • Setting up trust accounts in the names of your beneficiaries to plan for estate taxes.
  • Naming a guardian for your living dependents.
  • Appointing an Executor to oversee your Will's implementation. 
  • Adding or changing beneficiaries on your life insurance policies. 
  • Planning your funeral arrangements.
  • Appointing a durable power of attorney (POA) to instruct other investments and assets.

In short, estate planning is a comprehensive plan for managing your legacy. If you're looking for trustworthy and reliable advice on estate planning, please don’t hesitate to contact Melbourne Capital Group.

How is estate planning different from will planning?

Will Writing Malaysia

Estate planning and Will planning are two processes that frequently go hand-in-hand, but they are not interchangeable.

Estate planning is a detailed and comprehensive plan that includes documents that are effective during your lifetime and documents that can only come into effect after your death. These documents show who has the authority to make healthcare and financial decisions on your behalf during your life, as well as who receives your assets upon your death.

Hiring a professional to draft your will is an integral part of your estate planning process. A will primarily specifies your asset distribution after your death and whom you appoint as the guardian of your underaged children. 

Apart from a Will, there are several other documents that create a comprehensive estate plan:

If you're looking for Estate planning or Will writing services in Malaysia or Thailand, get in touch with Melbourne Capital Group.

Wills and estate planning are necessary safeguards that keep you and your family away from unnecessary hassle and burden during tough times. They ease the management of your assets and allow your wishes to be fulfilled in your absence. 

Contact Melbourne Capital Group today if you’re looking for experienced professionals who offer estate planning and will writing services in Malaysia. Whatever your financial goals are, we can help.

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