In 2008, the U.S. House of Representatives designated the third week of October as “National Estate Planning Awareness Week” in order to encourage American adults to create estate plans. Despite this, more than 50% of American over the age of 18 do not have estate plans. This year, in the face of a global pandemic, use this opportunity to learn how to protect yourself, your family, and your business.
Every estate plan should include both incapacity planning and planning for after you pass away. Incapacity planning allows for someone to assist you if you are unable to make decisions for yourself, and is the planning most critical right now. The most important tools for incapacity planning are:
1. A Durable Power of Attorney: This allows an Agent you appoint to manage your financial affairs.
2. Medical Power of Attorney: Similar to a general power of attorney, this allows a Health Care Agent to make your medical decisions when you are incapacitated.
3. Advance Health Care Directive: An advance directive, or living will, allows you to indicate what kinds of end-of-life care you do and do not want. This document is sometimes called a “living will.”
At Van Pelt Law, all of our estate planning packages include incapacity planning. If you are only planning for your death, and not for your life, you are placing yourself at risk of not having your wishes followed.
The most important tools for transferring your assets after you pass away are:
1. Last Will and Testament: Your will is the legal document that directs distribution of your property at the time of your death. It also allows you to appoint a personal representative to oversee the distribution of your assets. It allows you to appoint a guardian to take care of minor children. In the absence of a will, a court will decide who should oversee the distribution of your assets, and who will take care of your children.
2. A Living Trust: In many states, and for high net-worth individuals in every state, a revocable living trust can manage your assets both during your life and after you pass. This can be a great tool for maintaining privacy, and for ensuring that your wishes are followed both during end-of-life and after you pass.
Please contact me today to discuss the tools you need in your estate plan.