Life can change in a moment. A death, cancer diagnosis, heart problem or unexpected hospitalization can suddenly place a family in a position it never anticipated.
In those moments, estate planning stops feeling like something to handle “one day.” It becomes an urgent question: Are the right documents and protections already in place?
Unfortunately, some planning cannot wait until after a person has become seriously unwell. Estate-planning documents generally require the person signing them to understand the decisions being made. If illness or incapacity has progressed too far, it may no longer be possible to create or update a plan without court involvement.
That is why getting your affairs in order while you are healthy is so important.
WHAT SHOULD FAMILIES THINK ABOUT?
Guardians for minor children: Parents should consider who they would want to care for their children if neither parent could do so. Naming guardians in an estate plan allows parents to document their wishes and provide important guidance for the court. Without written instructions, relatives may disagree—or the court may have to make the decision without knowing what the parents wanted.
Beneficiary designations: Retirement accounts and life insurance policies commonly pass according to the beneficiary designation on file. Those forms should be reviewed after major life events such as marriage, divorce, a birth or a death. An outdated designation may not reflect your current wishes, even if the rest of your estate plan has been updated.
Life insurance: Life insurance may help replace income, pay debts, support minor children or give a surviving spouse time to adjust after a death. Obtaining coverage can become more difficult or expensive after a serious health diagnosis. Considering your family’s needs while you are healthy may provide more choices. A licensed insurance professional can help you evaluate appropriate coverage and available policies.
A revocable living trust: A properly created and funded living trust may allow covered assets to pass to beneficiaries without probate. It can also explain how assets should be managed for minor children and identify who will manage trust property if you become incapacitated. Creating the trust is only part of the process. Assets must also be properly connected to or coordinated with the plan.
A durable power of attorney: A power of attorney authorizes a trusted person to handle certain financial and legal matters if you are unable to act for yourself. Without one, family members may need to seek court authority before they can manage accounts, pay expenses or address other important matters.
An advance healthcare directive: An advance healthcare directive allows you to identify someone to make healthcare decisions for you and communicate your wishes if you cannot speak for yourself. It gives your family guidance during an emotional time and helps ensure that the person speaking for you is someone you chose.
PLANNING IS AN ACT OF LOVE
Estate planning is not simply about distributing property after death. It is about protecting your children, preserving your choices and reducing uncertainty for the people you love.
You do not need to wait for a diagnosis, hospitalization or family loss to begin. In fact, the best time to plan is before a crisis—when you have the time and ability to make thoughtful decisions.
If your estate plan is missing, incomplete or outdated, Shipp Trusts can help you take the next step. Visit ShippTrusts.com to learn more.
This article provides general educational information and is not legal, tax, financial or insurance advice. Every family’s circumstances are different. Consult the appropriate qualified professionals regarding your individual needs.
This article is a service of Kimberly Shipp, Attorney at Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
