People often worry about things that are beyond their control. “What if I die, who will take care of my children? How will my family survive without me? I don’t have a significant other or children, how can I leave a legacy after I’m gone from this world?”
Why ponder on these questions when you are able to purposefully plan, and put your mind at ease? Estate planning is a topic that is easily misunderstood. Purposefully planning your estate is a tool to secure what is yet to come with your family’s future and your legacy. It is a vital process for everyone, regardless of personal wealth or material possessions.
First, to completely understand the details of estate planning, you must decipher between fact and fiction. There is a significant amount of inaccurate information that has tarnished the public’s opinion of estate planning.
Asset distribution is not the sole objective of estate planning. Rather, the process can include your final wishes for guardianship over your minor children, appointing a trustee to see that assets are provided to minor children after the age of 18, having a power of attorney document if you are unable to make sound financial decisions, and also planning for someone to make healthcare decisions for you if you are unable to do so.
Planning Purposefully
Estate planning is not only for the elderly. While death does not discriminate, estate planning is for more than just imminent plans after death. An estate plan can ensure that your wishes will be kept if you are ever incapacitated and unable to make sound financial or health care decisions. Be mindful that estate planning is your opportunity to change worrisome thoughts into purposeful planning for your legacy.
Winston Churchill once said, “Let our advance worrying become our advance thinking and planning.”
Writing a will is part of estate planning, but some people believe that their estate will automatically default to their surviving family members. That may be true in some states. However, some important decisions such as guardianship for minor children, health and financial decisions, or division of assets in a blended family are areas that need to be planned for. Estate planning ensures that your legacy is not determined by strangers. A holographic will (self-written) is not valid in Massachusetts, so it is best to utilize the services of a professional to ensure the language and definitions are the correct interpretations of your final wishes.
Not just for the uber-wealthy
This is not the case at all! Yes, with more wealth your final wishes may be more complex. However, wealth does not determine the importance of your final wishes. Powers of Attorney and guardianship of minor children or beloved pets are not dependent on your financial wealth. There are many affordable options available to perform estate planning. The peace of mind that you will receive from the rich dialogue with an estate planning professional is priceless. This is not an experience you can achieve with an online planning tool, or box of software from your local Office Depot.
“This is too depressing. I don’t want to deal with this.” This is a frame of mind that too many people may adopt. Thus, leaving your grieving loved ones with many questions, and a profound sense of loss. Estate planning is your opportunity to provide your loved ones with additional guidance. The afterlife of your material possessions may not be important to you, but consider estate planning as the opportunity to lessen a burden on your loved ones.
Real Life Really Happens
The worst behavior comes out in people during times of grief and duress. You may believe that your family will make the best decisions for you when the time comes. They wholeheartedly believe that, too. However, it can be many different perspectives on what the “best” decision is. A battle can ensue over the “best” decision even in the closest families. A solid estate plan can provide the guidance that a grieving family needs. Wouldn’t the best “voice of reason” be your final wishes in an estate plan?
If you are unable to make decisions for your financial or health well-being, your family needs legal permission to do so. HIPAA (Health Insurance Portability and Accountability Act of 1996) is United States legislation that provides data privacy and security provisions for safeguarding medical information. Your loved ones may not be able to learn about your medical condition without HIPAA authorization. By working with an estate planning professional, we can help you to understand all possible scenarios, and purposefully plan for those situations.
You have worked hard to leave a legacy, and now is the time to change your worry into a purposeful plan to protect the future of those you love.
