Estate Planning: The New Year’s Resolution That Helps You & Your Family

Happy New Year!  I know that a lot of people have estate planning on their “to do” list. If you’re looking for a resolution for 2024, maybe this is the year you create or update an estate plan.  Most people have a lot of questions about the process, so I’ll try to cover some important points.

Creating an estate plan is unique because you are the only one who can create your plan, but it really isn’t about you and it isn’t something you are doing for you. It’s something you are doing for the people you love most. They are the ones who will benefit from this plan if you become incapacitated or when you are gone.

When should I do this?

Usually, there is a life event that reminds you that you should create an estate plan or update an old plan. Some of the most common events are: (1) having a baby; (2) getting married; (3) getting a divorce; (4) retiring; (5) being diagnosed with a life-threatening illness; (6) needing skilled nursing home care; or (7) having a death in your family.

Where do I start?

When most people think about estate planning, they think about a Will. They want to ensure that the right people inherit their possessions when they die – and these people aren’t wrong.  Putting strategies in place to protect your assets and pass on your wealth is a fundamental part of the planning equation. However, providing for the proper distribution of your assets upon your death is just one part of the process.

Planning that’s focused solely on who gets what when you die is ignoring the fact that death isn’t the only thing you must prepare for. You must also consider that at some point before your eventual death, you could be incapacitated by accident or illness.  Unlike death, which is by definition a final outcome, incapacity comes with an uncertain outcome and timeframe.

Incapacity can be a far greater burden for your loved ones than your death. This is true not only in terms of its potentially ruinous financial costs, but also the emotional trauma.  An effective estate plan can address these issues and can protect your assets for the benefit of your spouse, children, and loved ones in the event that you need long-term skilled nursing care.

What can I do to accomplish this?

Some of the most common estate planning tools that we use to protect your assets during your lifetime and upon your death are:

·      Last Will & Testament

·      Asset Protection Trust

·      Gifting

·      Durable Financial Power of Attorney

·      Durable Health Care Power of Attorney

·      Living Will/Advance Health Care Directive

Be Proactive.

None of us know when we will die and we cannot prevent our incapacity, but proper estate planning can at least give you control over how your life and assets will be managed when and if it does occur. Moreover, such planning can prevent your family from enduring needless trauma, conflict, and expense during an already trying time.

If you don’t already have a plan in place, please give us a call.  I’d be happy to work with you to determine the best plan for you and your circumstances.  Everyone’s goals are different, so everyone’s plan should be customized to accomplish those goals. If you already have planning strategies in place, I’m happy to review your plan to make sure it has been properly set up, maintained, and updated. Give us a call (724-520-2222) to get started.