What’s the difference between a will and estate planning?

When people think about planning for the future, they often assume that writing a will is enough. While a will is an important part of the process, it’s only one piece of the puzzle. Estate planning and wills work together to make sure your assets are distributed according to your wishes, but they serve different purposes.

So, what’s the difference between a will and estate planning, and which one do you need? Let’s break it down.

What is a will?

A will is a legal document that states how your assets should be distributed after your death. It allows you to:

• Name beneficiaries for your property, savings, and possessions.
• Appoint an executor to handle your estate.
• Nominate a will writing service or solicitor to assist with the process.
• Name a guardian for any children under 18.

Writing your first will is an important step, but it doesn’t cover everything. A will only takes effect after your death and doesn’t help with managing your finances or care while you’re still alive.

What is estate planning?

Estate planning is a broader approach to managing your assets, both during your lifetime and after you pass away. It can include:

• Writing a will.
• Setting up wills and trusts to manage inheritance.
• Assigning power of attorney to a trusted person.
• Planning for long-term care.
• Reducing inheritance tax liabilities.

Unlike a will, estate planning helps you make financial and legal arrangements that apply while you’re still alive. It gives you greater control over your assets and can make life easier for your loved ones in the future.

Will vs estate planning: What’s the difference?

Both estate planning and wills help with organising your finances and property, but they serve different purposes.

Feature	Will	Estate Planning
Covers asset distribution after death	✅	✅
Includes power of attorney	❌	✅
Helps manage inheritance tax	❌	✅
Can include trusts for long-term planning	❌	✅
Allows you to name guardians for children	✅	✅
Covers healthcare or financial decisions while alive	❌	✅

If your financial situation is straightforward, a will may be enough. However, if you have multiple assets, own a business, or want to reduce tax burdens, estate planning offers greater control.

Do you need a will or a full estate plan?

When a will is enough

A will might be suitable if:

• You have a simple estate with no complex assets.
• You only need to name beneficiaries and an executor.
• You want to appoint a guardian for your children.

If your main goal is to state who should inherit your assets after your passing, writing a will is a good first step.

When estate planning is a better option

Estate planning is more suitable if:

• You have multiple properties, investments, or a business.
• You want to set up wills and trusts to protect family wealth.
• You need a power of attorney to make decisions if you become incapacitated.
• You want to reduce inheritance tax for your beneficiaries.

Estate planning helps with financial management during your lifetime and can prevent unnecessary legal complications later on.

What should you include in an estate plan?

Estate plans can vary based on individual needs, but most include the following:

Power of attorney

A power of attorney allows someone to make financial or healthcare decisions on your behalf if you become unable to do so. This can be especially important if you’re diagnosed with a serious illness or involved in an accident.

Trusts

A trust is a legal arrangement that lets you set aside assets for specific beneficiaries. Trusts can help protect family wealth, ensure care for vulnerable dependents, and reduce inheritance tax liabilities.

Digital assets

More people now own digital property, from cryptocurrency to online business accounts. Including digital assets in your will or estate plan makes sure these are passed on properly. Without instructions, loved ones may struggle to access important accounts after your passing.

Tax planning

Inheritance tax can take a large portion of your estate. A well-planned estate can help reduce the tax burden by making use of tax-free allowances, gifts, and trust structures.

How often should you update your estate plan?

It’s a good idea to update your will and estate plan when major life events happen, such as:

• Marriage or divorce.
• Buying a new property.
• Having children.
• Receiving an inheritance.

If you already have an estate plan, reviewing it regularly keeps it aligned with your wishes and current legal requirements.

Where should you store your estate planning documents?

Once you’ve written a will or estate plan, keeping it safe is just as important as writing it. Losing these documents can create complications for your family.

Common options for storing your will and estate planning documents include:

• A solicitor’s office.
• A secure home safe.
• A bank’s safety deposit box.

Letting your executor or family members know where the documents are stored can help avoid delays when they are needed.

Final thoughts

Both a will and estate planning play an important role in securing your financial future, but they serve different purposes. A will is a good starting point for distributing assets, while estate planning offers a more comprehensive approach to managing wealth and reducing tax burdens.

If you’re unsure where to start, working with a solicitor or professional planner can help you choose the right approach. Whether you’re writing your first will or updating an existing plan, taking action now can make life easier for your loved ones later.