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What Is the Difference Between Estate Planning and Financial Planning (And Why You Need Both)

Schultz and Kellar, PLLC Offers a Holistic Approach By Providing Both Estate Planning and Financial Planning

Many people confuse estate planning and financial planning, or at least are unclear about what services each one offers.

Schultz and Kellar, PLLC serves people throughout Dallas-Fort Worth, Texas and is one of a small number of law firms that offers both estate planning and financial planning. By offering both of these services, we are able to provide our clients with a holistic approach to wealth management and wealth distribution, all under one roof.

To understand the differences between estate planning and financial planning, it’s helpful to first understand what each one is.

What Is Financial Planning?

Financial planning is the long-term process of managing your finances that allows you to reach your goals and dreams, while navigating the inevitable financial barriers that arise at each stage of life.

Through the process of financial planning, you work with a planner to identify your goals, evaluate and analyze your financial status, and implement a plan to help you reach your goals.

A financial planner will help you to examine your current financial picture, identify long-term goals, and prioritize spending and saving to make those goals a reality.

On-going maintenance of the plan is required so that necessary adjustments can be made to allow you to reach your goals.

Why Should You Hire a Financial Planner?

Many people simply don’t have the time, desire, or expertise to actively plan for their financial future.

Working with a financial planner allows you to:

  • Plan to have enough money for a comfortable retirement
  • Handle the inheritance of a large sum of money
  • Prepare for a marriage or divorce
  • Plan for the birth of a child
  • Face a financial crisis such as loss of a job or serious illness
  • Care for aging parents or a child with a disability
  • Plan and pay for education
  • Buy, sell, or pass on a business

What Is Estate Planning?

Estate planning is the process by which you plan what you will do with your assets at the time of your death, and who will handle that process.

Your estate is everything you own - your house, your cars, checking and savings accounts, investment accounts, life insurance, and personal property like furniture, jewelry, and other personal possessions.

In its most simple form, estate planning involves creating a Last Will and Testament, and a few ancillary documents like a Power of Attorney, Healthcare Power of Attorney, and Living Will. For more complex estates, or for people dealing with situations such as a child with special needs, a second marriage, or inheritance of large sums of money, a trust might be recommended, as well.

Your estate plans allows you to ensure that your wishes are carried out by designating who will receive parts of your property, which parts of your property they will receive, when they will receive it, and who will get it to them, all while paying the least amount of taxes, legal fees, and court costs.

What Is the Difference Between Estate Planning and Financial Planning?

It is not unusual for people to confuse estate planning and financial planning. Both offer a valuable way to organize assets, plan for the future, and create financial peace of mind. However, there are important differences.

Financial planning involves assessing a person’s financial goals and making decisions about how to grow wealth to create more financial freedom and meet personal and business financial goals.

Estate planning involves managing wealth once it has been accumulated, protecting it, and distributing those assets at the appropriate time and to the appropriate people. In addition, estate planning deals with more than just financial assets, and may include items such as who will make healthcare and financial decisions for you if you are unable to make them yourself, who will care for your pets, a detailed plan for your medical care as near the end of your life, and the type of legacy you wish to pass on to future generations.

Put most simply, financial planning is the process by which you accumulate wealth, while estate planning address how you protect and ultimately distribute that wealth.

Schultz and Kellar Offers the Benefits of Estate Planning and Financial Planning Under One Roof

Schultz and Kellar, PLLC is one of a very small number of firms that offers both estate planning and financial planning. By working with a team of planners who understand both the acquisition and distribution of wealth, we can meet you where those two disciplines intersect, offering a holistic planning perspective that is designed to help you grow your wealth, protect it, and ultimately distribute it.

If you have questions about estate planning and financial planning, contact Schultz and Kellar today. From our offices in Southlake, Texas, we are proud to serve clients throughout the Dallas-Fort Worth metroplex. Call us today at (682)-268-0782, email, or complete our online form.


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