Estate Planning
Estate planning can feel like a complicated and unpleasant task, making it easy to put off. After all, nobody likes to be reminded of their mortality. That does not have to be the case. A common refrain from my clients is that the process was much easier than they expected.
When most people hear the phrase estate planning, they think of a Will or sometimes a Trust. A Will provides instructions for the administration of your estate, including the disposition of your assets after your death. A Trust is a far more flexible instrument which, given the numerous types of trusts, would require many posts to cover in sufficient detail. While these are both certainly important instruments, they are really just the start.
An estate plan may also include a “Power of Attorney” which authorizes a trusted agent (or “attorney in fact”) to manage your affairs if you are unavailable or unable to do so yourself. A “Health Care Directive” (sometimes referred to as a “living will” or “medical power of attorney”) is very similar but applies to your medical care rather than your property. Both of these, when used properly, may help avoid the need for a guardianship later in life. Other tools that may be considered during the planning process include the use of lifetime gifts, payable-on-death beneficiary designations, life insurance policies, and jointly-owned assets. All of these factors, taken together, must be considered in setting up a comprehensive estate plan.
It is also important to prepare a suitable estate plan early in life and to review it periodically, especially when there has been a significant life event such as a marriage, divorce, second marriage, or the birth of children or grandchildren. Everybody is unique and may have different goals, concerns, or interests that they would like to address. For example, an older client may be more concerned with making sure their assets are protected and properly distributed. On the other hand, younger clients may want to make sure that they can appoint the proper person to act as a guardian of their minor children. These can all be properly addressed with a carefully-crafted estate plan.
If you have been putting off your estate planning, or if it has been a while since you have reviewed yours, please consider scheduling an appointment for a consultation.
