Estate planning is one of the most important services I offer as an attorney. While there are some financial advisors who offer financial planning services that address some aspects of estate planning, ultimately it is a specific legal practice. Because estate planning and financial planning are very much intertwined, it is important to understand both their differences and their relationships. This will allow you to create a more comprehensive plan for your life ahead, along with what happens to your financial assets when you are no longer around.
What is Estate Planning?
Most basically, estate planning is preparing for the orderly transfer of your assets at death, to your intended beneficiaries. However, estate planning is very much about life, too. It is college planning for your children, so that they can be prepared for life. It is disability planning, so that you, your spouse, and your children are all supported should you become incapacitated. It is retirement planning, so that you can truly enjoy your golden years. It is income tax planning, asset protection planning (in case of financial catastrophes), legacy planning for your family heritage, and so much more.
I like to say that estate planning is life planning, in all of its complications and wonder. It is about you, your family, your world, your hopes and fears, and how you want to better influence your life and the lives around you.
What is Financial Planning?
Some might say that financial planning is everything I just stated above about estate planning, and they are somewhat right. But, there are important distinctions between the two. The best way I can put it is that financial planning is one component of estate planning. Likewise, your estate plan is just one part of your overall financial plan. They are both parts of the same engine, and both must be addressed if your overall life plan is to work.
Financial planning specifically addresses the assets you accumulate. It helps you identify how much you need to save, what assets (and investments) you need, your strategy for preserving and growing your assets, and how much “savings” you need for retirement. Estate planning, on the other hand, addresses specific issues relating to those assets if something happens to you. In other words, your estate plan is ultimately answering these following questions:
- Who is in control of my assets?
- What should be done in the event I become disabled or divorced?
- How do I protect my assets?
- Who benefits from my assets while I am alive?
- What happens to my assets when I die?
Life Planning Services
Estate planning services can only be provided by attorneys. Financial planning services can be provided by a variety of professionals, including financial planners, life insurance professionals, accountants, bankers, and other financial and tax professionals. Whoever helps you with any of your life planning (and after life planning)—especially when it comes to your most important financial assets—should be a qualified and experienced professional. Developing your life plan as it relates to financial planning and estate planning is not something that should ever be taken lightly. Planning is far too important to leave undone. It is perhaps even more detrimental when done by those not qualified to properly address your needs. As Benjamin Franklin put it, “failing to plan is planning to fail.”
To sum up, a successful life plan will need to include both your estate plan and your financial plan, and these crucial parts of your plan need to work together to cover all your bases.
For help with developing your estate plan, contact me today. I am an attorney with more than 25 years of experience in estate planning helping people from all walks of life. Let me help you, to build a better plan for your future.
The Law Offices of Thomas D. Glascock
1.631.629.6558
thomas@thomasdglascock.com
