Show your love this February by establishing a comprehensive estate plan that ensures your family is protected and your wishes are honored in the event of your incapacity or death.
Planning for Incapacity
Planning for incapacity may feel overwhelming, but it’s a crucial step in protecting your financial well-being and ensuring a trusted individual can seamlessly step in to act on your behalf if needed.
Financial Matters. A Durable Power of Attorney is one of the most effective tools for safeguarding your financial well-being in the case of your incapacity. “Durable” means the Power of Attorney remains valid even in the event of your incapacity. Executing a Durable Power of Attorney ensures that a person you trust and choose is able to manage your assets, pay bills, and handle financial decisions on your behalf—without the need for court intervention, which can be costly and burdensome on your family.
Health Care Decisions. Just as a Durable Power of Attorney protects your financial well-being, executing health care documents ensures that your medical wishes are honored and that a trusted individual is able to make decisions on your behalf if you are unable to do so. Key health care documents include:
- Designation of Health Care Decision Marker– Appoints someone to make medical decisions for you in the event you become incapacitated.
- Living Will– Specifies your preferences for life-sustaining treatments, end-of-life care, and other medical interventions.
- Medical Records Release– Authorizes someone to access your medical records and speak with health care providers on your behalf.
Planning for Death
Many individuals think that a Last Will and Testament (Will) is only for people who want to set up trusts or save estate taxes. While a Will accomplishes those important goals, the primary reason for creating a Will is to leave your property to the person(s) you choose in the manner you wish and appoint the person of your choice as the Executor. In the absence of a Will, state law provides who inherits your assets and who is entitled to be administer your estate.
It is also critically important to review your beneficiary designations to make sure the disposition of your accounts coordinates with your estate plan. An estate plan can easily be derailed if your beneficiary designations are out of date, as such designations trump your Will.
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Planning for incapacity and death may seem daunting to accomplish, but if you do not plan you could leave your family in a difficult position. You may be reluctant to sign estate planning documents, believing that to do so gives up control. On the contrary, you are taking control by stating your wishes and appointing trusted individuals to carry them out. It is important to take the time now to make these planning decisions and properly document your wishes to ensure your directions are carried out in the event of your incapacity or death.
If you already have an estate plan in place, remember to review it every few years to ensure it fits changing circumstances such as the death of a family member, the birth of a grandchild, or a significant change in financial circumstances. It is important to make sure you adjust your estate plan accordingly.
Fact of the Month:
“I love you Wills” refer to the reciprocal Wills between spouses which leave assets to each other. In recent years, “I love you Trusts” have become more desirable as trusts can offer the surviving spouse asset protection along with an avoidance of probate.
For more information, please contact our Trusts, Estates and Private Client Services Practice Group, the authors, the Garfunkel Wild attorney with whom you regularly work, or email us at [email protected].