by Andrew P. Deaver
As a new year begins, people often take stock of their life and consider areas that may need improvement. Should you eat healthier? Should you read more books? Should you finally paint the spare bedroom? Should you review your estate plan? Should you ensure you have a good plan for caring for the people you love both after you have died and while you are still here?
Many people consider estate planning as something only for those who are older or have lots of money. Regardless of age or financial situation, estate planning is critical. If you do not have an estate plan, the government has a default, one-size-fits-all plan for you. Your estate plan is a way to protect your family and the assets they will receive from you after you are gone, a way to protect yourself while you are still here, and a way to express your love to the people you care about most.
Do you have a Will? The underlying objectives of a Will are always to protect the people you care about while attempting to avoid arguments among those same people.
Have you chosen a guardian who will have custody of and care for your minor children after you are gone and who will ensure that your children will continue to be raised in an environment that respects and honors your values, parenting style, and beliefs? Have you decided how you want your assets to be divided upon your death, thereby avoiding potential conflicts that could arise between your family and friends? Have you chosen who will administer your estate, ensuring that a responsible, trustworthy person is in charge of making certain your children are provided for, and your assets are divided the way you want?
Do you have a properly drafted and executed Power of Attorney for your protection? A Health Care Power of Attorney appoints a person to make medical decisions on your behalf if you are unable to make them. Having that person appointed ahead of time can save precious time in the event of a medical emergency.
A Financial Power of Attorney appoints a person to make financial decisions on your behalf if you can no longer make those decisions because of mental incapacity or simple unavailability. This planning can protect your assets from being lost or neglected if you are unable to manage them.
The time of year does not change the need to plan; neither does age or income. Thinking ahead and following through can help accomplish your goals.
Now that the holiday celebrations are over, as life returns to normal, it is time to decide how best to provide for your loved ones.