Many of my estate planning clients have put off their estate planning for months, and even years sometimes. Part of this is because death or disability is something we don’t want to think about, and part of it is because some of the questions are difficult to answer. What my clients do not always understand is that (1) it’s my job to help them to make the decisions, and (2) if they don’t decide, then someone else – a stranger – will decide for them. Here are some questions you need to consider when thinking about estate planning:
- The guardian for your children. This is probably the most important decision you will make. In case the unthinkable happens – you and your spouse are out together on date night and get into an accident and are both hospitalized or worse. What do you think will happen to your children, who are at home with the 19-year old neighbor babysitting? The police will likely take your children into protective custody – foster care – until a proper guardian is named. If you have a formally-named guardian in your estate planning documents (and not some hastily-written page), then you can avoid this awful experience for your children.
- Who will get your stuff. If you don’t decide who gets your stuff, the state will. And perhaps more importantly than the couch and the jewelry is the estate itself. Do you have minor children? Do you want them to inherit hundreds of thousands of dollars when they reach 18? Do you perhaps want to hold back some of the estate to pay for college, or at least to let them mature a little before coming into (and losing) a great deal of money right at 18? The only want to do this is through trusts.
- What do you want the doctors to do if you are in an irreversible coma? If you don’t decide how you want the doctors to treat you and what extraordinary measures will be taken to save your life, then the doctors will endeavor to keep you alive as long as they can. Do you want to survive by machine alone? If not, then you need to tell someone! Tell your parents and your children, and create a power of attorney that legally records your wishes. If you don’t do this, you could cause your family to scramble to determine what YOU would have wanted.
- Who will help you to manage your assets and estate if you can’t? Most of us are more likely to experience a slow decline than go out with a bang. Because of the advances in medical and health care, we are living longer and with better-quality lives. But as we slow down, there is a chance that we will start to lose our ability to pay our bills and manage our finances. To avoid the painful, time-consuming and expensive process of conservatorship, each of us needs to designate someone to make decisions on our behalf if we become unable to. This is relevant to individuals of all ages, as surviving traumatic brain injuries is getting more and more common.
- Where are your documents? Part of creating your estate plan in making sure everything is in one place: your will, trust(s), powers of attorney, bank/investment/life insurance/retirement statements, pre-need funeral planning documents, and passwords/keys/online account information. There is nothing worse than making your grieving family rummage through your stuff to find what they need.
Estate planning is the last thing that you can do for your family to make your passing easier. Isn’t your family worth it?
August 2, 2012 at 6:02 AM
This is really good information. Really valuable. Working with people in appraising and liquidating estates, we encounter people on a regular basis whose loved ones passed away and no planning was done beforehand. This creates a lot of stress for the family.