A few weeks after the New Year celebrations have finally ended is a great time to create an estate plan or review the one you already have. This type of resolution may not sound very exciting, however it is very important to make sure your wishes are documented and match up with your current life circumstances. It is part of taking some time to take care of yourself.
Some of the situations that happen during the year that may affect your wishes include marriage, divorce, birth, death, or disability of a family member. You may also have changes in your net worth or have purchased or sold real estate or a business. These life situations happen so often that it’s a good habit to review your estate plan on an annual basis, so why not make it a new year’s resolution tradition?
Below we’ve provided some guidance on what things to consider if your are getting an estate plan done for the first time or if you are reviewing one you already have in place.
Personal Representative, Financial Agent, and Medical Agent: Choosing the right person or people to act on your behalf with financial and medical decisions will create a lot of peace of mind for family and friends during a very difficult time. The individual you choose should be someone you trust, has your best interest at heart, will act fairly and honestly, and is competent for the job(s). It’s also a good idea to choose someone who has been financially responsible in their own life for the personal representative and financial agent roles.
Personal Representative (also known as Executor): This person will act on your behalf after your death to settle your financial affairs, which includes resolving debts and handling the distribution of your property.
Handling your business: This person has power of attorney to act on your behalf regarding your financial and/or business matters in the event that you are incapable of doing so yourself.
Health Care Agent: This person has power of attorney to make medical decisions for you if you’ve become incapable of doing so yourself. This person can be the same person as your financial agent, however it does not have to be. If you choose to have different agents for your financial and medical decisions, be sure that these two people will be able to work together in the event that the medical agent’s decisions require financial information.
Beneficiaries: These are the people, trusts, charities or other organizations who you name to receive your property after your death. It’s important to review your beneficiaries annually to consider changes that may have occurred such as marriages, divorces, births, and deaths. To make things simple you could name a specific group of individuals, such as “all my grandchildren who survive me.” This will keep you from having to update forms as your family grows. It’s also important to make sure the people named on your will match any insurance or investment accounts you have where you were required to name a beneficiary.
Gifts of Specific Property: Many people have specific items they want a certain person to have such as houses, vehicles, family heirlooms, and jewelry. Also, it has become very common to specify who should receive your pet. Should any changes occur in your personal property, it’s important to make sure it is noted appropriately in your will. This could be a good time to give an asset away now so the person gets to enjoy it longer.
Many people avoid getting an estate plan done because they don’t want to think about their own death, or being disabled and unable to make their own decisions. Although it is difficult to think about these things, having a solid plan documented will give you peace of mind day-to-day, and make the situation easier for your family and friends when something does happen. Don’t wait any longer. Talk to your attorney today
