If you would like to decide, in advance, what happens to you, your loved ones, and your assets when you are not able to decide for yourself, then, you need estate planning. Believe it or not, you have an estate. In fact, nearly everyone does.
Your estate is comprised of everything you own— your car, home, other real estate, checking and savings accounts, investments, life insurance, furniture, and other personal possessions. No matter how large or how modest, everyone has an estate and something in common. You can’t take it with you when you die.
Individuals put off estate planning because they think they don’t own enough, they’re not old enough, they’re busy, think they have plenty of time, they’re confused and don’t know who can help them, or they just don’t want to think about it. Then, when something happens to them, their families have to pick up the pieces.
Pass on Your Assets on Your Terms
You can do this by keeping your beneficiary designations up to date. This includes your investment accounts, retirement accounts, and insurance policies. Beneficiary designations, in simplest terms, tell the financial institution or the insurance company where the money needs to go when you’ve passed away. Accounts and insurance policies with named beneficiaries bypass the probate process. In other words, your beneficiaries don’t have to wait for your will to be filed at the local courthouse, which takes time and money.
We can recommend a trustworthy estate attorney!
We work with estate attorneys routinely, and it’s very easy to recommend someone you can trust to assist you in preparing these three documents.
A Durable Power of Attorney (DPOA)
Authorizes someone to act on your behalf should you become physically or mentally incompetent to handle financial matters. The person you designate in the DPOA can pay bills, file taxes, direct investments, etc. on your behalf.
Advanced Medical Directives
Allows you to specify the medical treatments you desire in the event you can’t express your wishes and appoint someone to make decisions for you. Without this document, medical care providers must prolong your life using artificial means, if necessary. The three types of advanced medical directives are a living will, a durable power of attorney for healthcare, and a Do Not Resuscitate order.
The crux of any estate plan, your will distributes your property as you wish after death. Without a will, disbursements are made according to state law, which might not align with your priorities. In addition, a will names an executor to manage and settle your estate as well as a legal guardian for any dependents. Since this is a legal document, it is crucial that your will be well-written and articulated so it is properly executed under your state’s laws.
None of us really likes to think about our own mortality or the possibility of being unable to make decisions for ourselves. This is exactly why so many families are caught off-guard and unprepared when incapacity or death does strike. Don’t wait. Contact us today to start the process.