Estate Planning – Planning for the Unexpected

Many believe that estate planning is just deciding what happens to your assets when you pass away, but the reality is that proper estate planning can do much more. While your estate plan should address what happens after you die, your plan should also address what happens when the unexpected occurs.

Additional Benefits of Estate Planning
Life can give us surprises, both good and bad. Estate planning can help you be prepared for some unfortunate surprises in life. This is because proper estate planning includes planning for you, your care, and the care of your belongings in the event you become unable to act for yourself.

One tool used to address your care when you cannot act for yourself is a financial power of attorney. This legal document allows you appoint someone to manage your finances and assets on your behalf. A financial power of attorney can go into effect as soon as the document is signed, allowing someone to act on your behalf immediately, even if you are not incapacitated. If you become unable to act, your named agent will have legal authority to act for you, managing your assets and financial matters.

Another estate planning tool that can protect you in a time of need is a healthcare power of attorney. Also referred to as an advance directive or designation of patient advocate, this legal document lets you name a trusted person to make medical decisions on your behalf when you are unable to do so yourself. It also gives you an opportunity to lay out some of your wishes regarding your medical care.

Provisions often known as a living will can also bring peace of mind to both you and your loved ones because it provides instructions on what type of end of life medical care you want. A living will can be a separate document or can be provisions contained in your healthcare power of attorney.

Finally, the use of a revocable living trust can be beneficial if you become unable to act for yourself. While you are healthy and available, you are typically the trustee of your trust, able to manage your assets for your benefit. However, the trust instrument also allows you to name a successor trustee who will step into your shoes to manage the assets when you are no longer able to act due to incapacity, disability,  or unavailability. Your successor trustee would then be authorized to continue to use the assets for your benefit.

Plan Ahead for Peace of Mind
Having a comprehensive estate plan that includes the documents described above can help protect you during your lifetime. Failure to have these documents in place may result in your loved ones going before the court to have someone appointed to make financial and medical decisions for you. This process, often called “living probate,” is lengthy, expensive, and stressful. The proceedings become public record, revealing many details about you, your family, and your assets. With proper planning, during a difficult time your loved ones can instead focus on you, your care, and the care of your assets.

Let Us Help
If you have questions about any of these legal documents or how to protect yourself through estate planning, please call us. We will be glad to help.