19 July, 2020
The COVID-19 pandemic continues to spread unabated, causing untold physical, economic, and mental challenges. Life has changed for many people with the new buzz phrases being "social distance," "wear a mask if you go out," and "stand at least 1.5 meters away from other people." This pandemic has caused and continues to create global uncertainty. The biggest challenge that we all face is that no one knows what the future holds. The daily news broadcasts remind us that we are all susceptible to a critical change in our economic circumstances or physical or mental health at any time in the future.
Thus, these uncertain times bring a renewed focus on making sure that your estate planning, including your last will and testament, is up to date.
Therefore, the question that begs is how do you ensure that your trust and estate planning is complete with all areas covered?
By way of answering this question, let’s consider the following points:
What is estate planning?
Investopedia.com defines estate planning as the “preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death.”
It is essential to contact a specialist estate attorney to help you set up your estate, including the following:
- Dividing up of assets amongst your heirs and to whom you wish to bequeath money or assets to.
- The payment of estate taxes.
- The creation of one or more trusts.
- The assigning of an executor.
- The appointment of a medical and financial power of attorney should you become unable to communicate and make decisions.
Estate planning strategies 101
As described above, it is essential to speak with an estate planning attorney as soon as possible to ensure that your estate is correctly planned. Here are a few of the essential reasons why:
It is not a good idea to die without a will
If you die before your estate is planned and you do not have an up to date last will, you will die intestate. If you die without a valid will, your estate gets divided up by your home state. As defined by the state, there is a specific order in which beneficiaries will inherit from you. Your surviving spouse is top of the list, and then your children and grandchildren will inherit your assets. In summary, you or your estate does not have any say in who inherits from you.
The appointment of a financial and medical power of attorney is crucial
Should you become ill and not able to make decisions about your end of life choices or your medical treatment options, it is essential to detail these options in your will. Secondly, it is vital to appoint a medical power of attorney as part of your estate planning to ensure that you are treated with the dignity and respect you deserve.
The same reasoning applies to the appointment of a financial power of attorney. Should you end up with a form of dementia as you age, it is crucial that your choice of care is specified, and the funds are set aside for this care.
Final thoughts
An estate that is planned in detail, with every aspect covered, is the perfect scenario. It makes your family’s life much more manageable if they know how you want to be cared for and how your estate should be divided up, especially if they are mourning your loss.
