According to a 2021 survey conducted by Caring.com, approximately one-third of adults in the United States have any estate planning documents such as a will or trust, despite the fact that approximately two-thirds of the respondents viewed these documents as “somewhat important” or “very important.” While many respondents attributed their lack of estate planning to procrastination, others indicated a mistaken belief that estate planning is not necessary because they do not have what they believed to be significant assets that required such planning; which could not be further from the truth.

Why You Should Have an Estate Plan.

By getting started with the creation of an estate plan, you will be doing more than safeguarding matters of finances and inheritance, you’ll be guiding future health decisions, providing for loved ones, and creating your own legacy. A few simple steps today will give you peace of mind tomorrow by ensuring you and your loved ones are well-protected.

Critical Elements.

• Last Will and Testament and Revocable Living Trust. If you do not have these important documents, state law will determine who will inherit your property—and it may not occur in the way you would have chosen. In addition, someone appointed by the court, instead of a trusted person of your choosing, will be in charge of caring for any children or pets and winding up your affairs. Spelling out your wishes in a will or trust will also prevent unnecessary confusion, anxiety, and expense for your loved ones when you are gone. However, a trust will be required to avoid probate (i.e. a court process that transfers title of your assets), which is often expensive, time consuming, and cumbersome.
• Powers of Attorney. A financial power of attorney designates an individual to make financial and property decisions (e.g., opening a bank account, signing a deed, getting your mail, etc.) should you become unable to handle your own affairs. A medical power of attorney designates a person you trust to make medical decisions for you when you are otherwise unable to speak for yourself.
• Insurance. If you become incapacitated (unable to manage your own affairs) or die, it is important for your family or loved ones to have information about your insurance (such as life, health, disability, long-term care, etc.) so they can file any necessary claims. Having the right amount of coverage is also important in case you become ill or die, leaving behind loved ones who rely on your financial support.
• Trusted Professionals. Creating a list of legal, financial, and medical professionals who have performed services for you is also important. The list should include their contact information so your loved ones can easily reach them in the event you or they need the professional’s help. You should also have HIPAA authorizations in place with medical professionals to ensure that your loved ones can obtain needed information.

How to Encourage Your Loved Ones to Create an Estate Plan

Estate Planning Awareness Month is a great opportunity, not only to take steps to make sure your own estate plan is in place, but also to talk to your loved ones, especially elderly parents, about creating an estate plan. Estate planning is often a difficult topic to broach because it brings the unpleasant topics of aging and death to the forefront of our minds. Here are a few tips to help you start the conversation.

• Be sensitive of their feelings. Put yourself in their shoes and keep in mind that few people are eager to dwell on the subject of their own death. One way to begin the conversation is to talk first about the need to plan for an illness and to provide instructions in the event they become too ill to communicate with doctors or handle financial matters for themselves. The conversation can then progress naturally to the importance of having an estate plan that will transfer their money and property in the way that they wish, provide for the care of any dependents or pets, and minimize any taxes, court costs, and legal fees. Communicate that you are not trying to control their decisions but only want to ensure that their own wishes regarding their medical care and property are known—and that all of their instructions are in writing to guarantee that they are carried out.
• Involve others in the conversation. If you are planning to speak to your parents about the need for an estate plan, try to include any siblings in the discussion to avoid giving the impression that you are attempting to influence or control your parents’ choices. You and your siblings should emphasize to your parents that none of you are asking about what you will inherit, but rather just want to make sure that their wishes are carried out if they become ill or pass away.
• Consult an estate planning attorney. An experienced estate planning attorney can help you and your loved ones create an estate plan tailored to meet each of your unique needs and carry out your wishes, or they can assist with updating an existing estate plan. We not only provide every estate planning client with guidance and information about the options available, but also help put a specifically tailored plan in place that will prevent unnecessary delays, legal expenses, and taxes.