3 minute read
Why should I have my estate plan documents prepared now?
from 6-11-20 Edition
by The Villager
BY DONALD PETERSON
Dear Readers,
“I will have my estate plan documents prepared when I get around to it.” This is what I occasionally hear from clients who are considering the best time to make or update their Will or a Trust. Many people procrastinate in having their estate plan documents prepared, saying that they will get around to it in the future, but never take action. Unfortunately, such inactivity can have significant adverse consequences. It is critical to estate planning to prepare appropriate documents to ensure that your assets are distributed upon your death, in accordance with your wishes. Estate planning allows you to name people to act on your behalf in financial and medical situations when you are unable to do so and allows you to name a conservator for yourself or a minor or disabled child.
There are several options available when planning for your life care as well as how to pass assets under your estate. Life care planning will avoid problems which may arise if you have an illness, automobile accident or other trauma, including care and treatment regarding issues related to COVID-19, which necessitates the need for others to act on your behalf (such as designated agents under Power of Attorney documents, or under a Guardianship and Conservatorship). To plan the distribution of your assets, you must decide what to give away, when to give it, who will receive it and when they will receive it. This includes assets held in joint tenancy with a spouse or others.
In the example of an automobile accident, or other simultaneous trauma, if both spouses/joint tenants die together, the asset held in joint tenancy will be distributed as part of the owners’ respective estates, where a Will or Trust will be beneficial in ensuring that such assets are distributed in accordance with the owners’ wishes. Such documents may also help to either avoid probate or to allow probate to proceed on an informal, rather than a formal basis, which results in a significant savings of fees and costs. After preparing estate plan documents, my clients typically report that they have not only a peace of mind, but are rewarded with a sense of relief and certainty that their wishes will be carried out, both for their lifetime care as well as upon their death.
If you have the foresight to prepare an estate plan, you will have peace of mind regarding the documents needed to protect yourself and your family during your lifetime and after passing. I can assist in preparing customized documents which take advantage of the current, best portions of Colorado law, to accomplish your goals.
Many of my clients have asked what are the critical documents needed, particularly in view of the COVID-19 pandemic. Simply being married does not give you the legal right to gain access to your spouse’s medical records or make medical decisions on your spouse’s behalf, even in an emergency. To avoid this problem and to help others care for you and to achieve your overall estate planning goals, the following documents create an effective medical/estate plan package:
1. Healthcare Power of Attorney;
2. General Financial Power of Attorney
3. Advanced Directive for Medical/Surgical Treatment (“Living Will”); and
4. Will (or a Will with a Trust).
Careful medical/estate planning should include preparation and signing of these documents, to accomplish your goals and protect you, both during your lifetime, and at the time of passing. The Power of Attorney documents allow you to designate those agents whom you authorize to help you on your behalf during your lifetime, and the Will/Trust documents allow you to nominate others to help with your estate after your passing, as well as to identify the beneficiaries and the distributions to them, to accomplish your estate planning goals.
As a courtesy, there is no charge for my initial consultation with clients. I have served seniors and their families for over 43 years regarding their medical and estate planning needs.
