Estate Planning, I spend a fair amount of time talking with clients about this subject.
When I ask, “Do you have one?” the response is often delivered in an apologetic tone with some side stepping and responses such as: “Yes, but we did it when our grown children were little;” or “I don’t need one; I have everything jointly titled with my spouse;” or just “no.”
I get it. Estate planning is not fun, and you may prefer going through an IRS audit instead of thinking about your demise, much less spending time with an attorney and trying to get it on paper. However, everyone needs written estate documents, and the process does not have to be agonizing or painful. It is all in how you think about it.
An estate plan is a gift to your loved ones who are left behind. You are helping make the grieving process just a tiny bit easier, because you have put your expressed wishes and desires on paper, potentially avoiding unpleasant disputes over assets and property. In addition, estate planning can be a way to express beliefs, values and hopes for future generations. It can be an opportunity to share family history, pass along wisdom or express gratitude for how an heir enriched your life. It can even be a way to request forgiveness or say things you could not express while alive. Your estate plan will be the last words from you to your loved ones.
Now that we are all on the same page as to why you need an estate plan, let’s explore what documents make up an estate plan. There are a few key documents that everyone should have:
Will
This handles the distribution of your assets and personal property through a court proceeding called Probate.
Financial power of attorney (POA)
This names an agent to act in your place in financial matters.
Healthcare power of attorney (HCPOA)
This names an agent to make health care decisions if you are unable to make them yourself.
Advance directive/living will
This expresses your wishes around end-of-life care and life sustaining measures you want or do not want. This is an important document for your HCPOA to understand, as they may be asked to make some difficult decisions on your behalf.
Living/Revocable Trust
This streamlines the distribution of your assets, helps avoid the need for probate and can continue holding assets for heirs beyond your death.
The last is an optional document but one that, I believe, can benefit almost everyone. Having a trust in place during your lifetime allows for incapacity planning and streamlined handling of your affairs should you become unable to handle them yourself. However, whether you include a trust in your estate plan is a discussion for you and your legal counsel.
I enjoy talking with people about estate and charitable planning and helping them plan their legacies. However, because I recognize that I am an “estate planning geek” and many others are not, I will refrain from going into detail. The differences between a will and a trust, important considerations in naming your power of attorney, or considerations when drafting your advance directive are critical elements of estate planning. I have written articles about these topics linked below.
Estate Planning in a Digital Age
Who Needs an Advance Medical Directive and Health Care Power of Attorney?
If you want to talk about estate planning or have questions, reach out today. We would be happy to visit with you. If you take nothing else away from this article, please embrace the importance of having an estate plan and get one completed. Your loved ones will thank you.
