Take the Burden Off Their Plate – The Importance of Estate Planning

A common myth is that only senior citizens need to be concerned with estate planning. However, it is an important task for everyone to consider in case of the unexpected. There are three such documents Derek Hoffman, Stockwell Sievert Law Firm, recommends having in place: a Last Will and Testament, Living Will Declaration and Power of Attorney.  

Estate planning remains a hallmark for older generations since there’s a greater likelihood of medical emergencies. Having a Living Will Declaration can mitigate stress for your family in such situations. It sets forth your wishes regarding life-sustaining treatment if you’re medically diagnosed with a terminal, irreversible condition. By making these decisions in advance, you can alleviate the burden on family who would otherwise be called on to make such decisions in a time of stress and uncertainty.  

A Last Will and Testament directs how your assets are distributed upon your death and can be as detailed or as simple as needed. Many avoid making a Last Will and Testament because they believe they don’t own enough assets to warrant it, or they simply don’t want to think about it. This thought process can cause future trouble for your relatives if you die ‘intestate,’ which means without a Last Will and Testament. If you die intestate, your property devolves according to law, which isn’t desirable for most. This can be avoided by having a valid Last Will and Testament.  

A Last Will and Testament also affords the opportunity to appoint an Executor, who will be responsible for handling your succession when you die. If you have dependents, a Last Will and Testament can also provide instructions on how you want them to be taken care of and by whom.  

It is also important to consider whether you have “forced heirs.” Forced heirs are entitled by law to a portion of your estate, and it’s imperative to consider their rights when preparing your Last Will and Testament.   

A Power of Attorney grants your designated representative(s) authority to make financial and medical decisions on your behalf. You don’t lose any rights when you name someone as Power of Attorney; rather, you’re simply giving someone you trust the authority to act on your behalf for convenience or if you become incapacitated. 

Powers of Attorney can be general, including financial and medical provisions. They can also be bifurcated (i.e., one Power of Attorney for medical purposes and a separate Power of Attorney for financial matters). Even if a Power of Attorney isn’t needed now, it’s a good tool to have at your disposal. It’s also imperative that older adults sign Powers of Attorney (and other estate planning documents) while they have sound mental capacity. 

None of these documents are set in stone. It’s entirely possible to change your estate planning documents until the day you die (assuming you have sound mental capacity). Circumstances change, and the law doesn’t contemplate that you are locked in; rather, it provides the flexibility to revise your estate planning documents as often as necessary to adapt to everchanging circumstances.  

Another common myth is that having a Last Will and Testament will tie up assets in probate for years or that you can avoid probate by having a trust. While some successions are complex and take additional time to complete, most successions are straightforward and can be completed in a timely and reasonable manner if you have a valid Last Will and Testament. It’s also helpful to keep organized files of your property and accounts, which along with your Last Will and Testament, can provide a roadmap for your Executor. 

Your eventual death will be a stressful time for your loved ones. You can make the process considerably easier for your family by getting these documents prepared now. Consider consulting with a qualified estate planning attorney to ensure your estate planning documents are prepared according to your wishes while also observing the legal formalities required by law.