New Year’s Resolutions and Estate Planning
As this blog post is published, we’re in the thick of the holiday season: shopping, decorating, attending parties, gathering with loved ones, and thinking about the year to come. Often, the holidays are also filled with reminiscences of loved ones who have gone before us. As hard as it is to think about, someday we will be those loved ones our families are remembering around the holiday table. One of the best gifts you can give your family this year is to ensure their future is a secure one: make some estate planning New Year’s resolutions.
It may seem strange to think about estate planning at the new year, a time associated with beginnings. But the new year is also the time we resolve to do better: eat more healthfully, exercise more, save more money. It only makes sense to put estate planning on your list of resolutions. After all, all the healthy eating and exercise in the world will only get you so far (and when the inevitable happens, you’ll want all that money you saved to go to the people you love).
It’s never too soon to start estate planning—but someday, it will be too late. So, resolve to get started today.
Three Estate Planning New Year’s Resolutions
The conventional wisdom is that the more specific you are about New Year’s resolutions, the easier it is to take action on them. A goal without a plan, as they say, is really just a wish. Here are three action steps to take as part of your estate planning New Year’s resolutions.
Make an Appointment with an Estate Planning Attorney.
Some people think that they need to have all their ducks in a row before they call an estate planning attorney, and that’s often what prevents them from making an estate plan; they get overwhelmed and never feel as if they have it “together” enough to make an estate plan.
The truth is that calling an attorney should be your first step, not your last. Your attorney will tell you what information and documents you need to gather and help you understand next steps. As a bonus, contacting an attorney is quick and easy, and helps you feel that you’ve already accomplished something—which keeps you moving forward.
Think About Incapacity Planning.
When you do sit down with your estate planning attorney, you will, of course, be talking about your assets and how you want them distributed after your death. But estate planning isn’t only about what happens after you die; it’s about making sure your wishes are honored if you become incapacitated at any point in your life.
That’s why your estate plan should include a durable financial power of attorney and a patient advocate designation (PAD). These documents, respectively, allow someone of your choosing to make financial and medical decisions for you if you become incapacitated. If you don’t have these documents in place, your loved ones will need to go to court to get a guardianship and conservatorship over you if they need to act on your behalf. That can be stressful for all involved, and you would have no say over who would be making decisions for you.
So, as one of your estate planning New Year’s resolutions, think about who you would want in that role. (You don’t necessarily need to have the same person making both your financial and medical decisions.) Your agent and patient advocate should be a person or persons you trust to act in your best interests and carry out your wishes. If you are not sure who to choose, discuss your concerns with your estate planning attorney.
Review Your Existing Plan.
If you already have an estate plan, good for you! You probably already know the feelings of relief and peace of mind that come with creating a plan for your future and that of your family. But having an estate plan doesn’t mean that you are done with estate planning. You should review your estate plan on a regular basis—not necessarily every year, but at least every few years.
You should also take a look at your estate plan every time you experience a major life change: marriage, divorce, birth of a child or grandchild, death of one of your heirs, or acquisition or loss of a major asset. If you have gone through one of these changes, or if it has been more than three years since you made your will or trust, resolve to review and update your estate plan.
Help With Your New Year’s Estate Planning Resolutions
The resolutions outlined above take from a few minutes to a few hours—not much time at all. But the difference they can make for you and your family are tremendous, setting the stage for a secure future. To learn more about incapacity planning and how to create an estate plan, contact our law office to schedule a consultation—and check one resolution off your list!
