As we usher in the new year, it’s a great time to reflect on priorities and set goals for the future. One crucial area to include in your resolutions and plans is estate planning. Planning for the future is a gift to your loved ones, ensuring that your wishes are known and your assets are protected. Let’s look at some key estate planning considerations for the coming year.

Revocable Living Trust
A revocable living trust is a versatile tool that allows you to maintain control of your assets, plan for any time of incapacity, while simplifying the distribution of your assets after you pass away. By placing your assets into a trust, you can avoid probate, both during lifetime and after death, which can be a time-consuming and costly legal process. This planning protects you and your assets during time of incapacity, provides for a smooth transfer of your assets after death, and maintains your privacy, as trusts are not subject to public record.

Financial Power of Attorney
Designating a financial power of attorney is another aspect of managing your financial affairs in the event of incapacity. The person you designate as agent will have the authority to make financial decisions on your behalf, ensuring that bills are paid, investments are managed, and other financial matters are attended to properly.

Healthcare Power of Attorney
Similar to the financial power of attorney, a healthcare power of attorney designates someone to make medical decisions on your behalf if you become incapacitated. Your patient advocate is authorized to voice your wishes regarding medical treatments, procedures, and other healthcare matters. Having a trusted individual in place ensures that your healthcare preferences are respected and followed.

Funeral Representative Designation
Specifying a funeral representative is a unique aspect of Michigan law that allows you to appoint an individual who will have the authority to make decisions regarding your funeral arrangements. This designation can alleviate the burden on grieving family members and ensure that your final wishes are carried out.

Review of Beneficiary Designations
Regularly reviewing and updating beneficiary designations on your accounts is crucial, especially after major life events such as retirement, marriages, divorces, births, or deaths. Failing to update beneficiaries can lead to unintended consequences, and assets may not be distributed according to your wishes.

Letters of Instruction to Helpers and Beneficiaries
While legal documents provide a framework for estate planning, including letters of instruction can offer additional guidance and personalization. These letters can contain details about specific bequests, funeral preferences, and other personal wishes. Providing clarity in such letters can help your loved ones navigate the emotional and practical aspects of settling your estate.

We Can Help
Estate planning is a thoughtful and proactive way to safeguard your legacy and provide for your loved ones. As the new year begins, take the time to review your existing estate plan or start the process if you haven’t already. Consulting with an experienced estate planning attorney can ensure that your plan aligns with Michigan law and addresses your unique needs. Schedule time with us and let us help you take the steps that will lead to the peace of mind that comes with knowing your affairs are in order and your loved ones are protected.