Estate Planning: Beyond Wills and Trusts
While wills and trusts are fundamental tools for outlining how your assets will be managed or distributed after death, a comprehensive estate plan goes much further. A well-rounded estate plan accounts for health care decisions, moments of incapacity, your health care decisions, guardianship of children, and control over your digital assets. For this reason, estate planning is not a task solely for seniors. It’s a decision-making process for adults of all ages.
Powers of Attorney: Planning for Incapacity
An essential but often overlooked aspect of estate planning is preparing for the possibility that you may become unable to manage your affairs during your lifetime, even unexpectedly. A durable power of attorney is a legal instrument that allows you to appoint someone to handle financial matters on your behalf if you become incapacitated, whether temporarily or permanently. Without this document in place, your loved ones may have to go through a lengthy and costly court process to be granted legal authority to help manage your accounts, pay your bills, or handle property transactions.
Health Care Directives and Medical Planning
Advance health care directives (or “living wills”) are another critical piece of estate planning. These documents allow you to express your preferences for medical treatment in case you are unable to communicate them yourself. They also give someone you trust the legal authority to make health care decisions on your behalf. Without an advance health care directive, medical providers may rely on default rules, or family members may face difficult conflicts about your future during a time of medical crisis. In short, choices about your medical treatment are far more uncertain without an advance health care directive in your estate plan.
Guardianships and Caring for Minor Children
If you have minor children, it’s vital to formally nominate a guardian in your estate plan. This is usually done through a will, but your choice can involve other documents during your lifetime, especially in states with separate processes for temporary or emergency guardianship. Additionally, planning for your children's financial care often requires setting up tools like custodial accounts, 529 education savings plans, or trusts with specific conditions to ensure responsible management of assets for your children’s benefit.
Access to and Scheduling of Digital and Non-Tangible Assets
Modern estate plans also account for digital assets such as online accounts (including online banking, retirement, and insurance accounts), photos, cryptocurrency, and intellectual property. They provide clear instructions and secure access to your trusted representatives. Additionally, keeping your beneficiary designations up to date on insurance policies and retirement accounts is crucial, because these often supersede instructions that you have left in other documents. Finally, maintaining an organized, accessible list of key accounts, documents, and contacts helps reduce confusion for your loved ones during difficult times and ensures that your entire estate is accounted for.
Bottom Line: Maintaining Control over Your Future
Estate planning involves more than directing the distribution of your property after death. It also involves preserving your control over decisions, easing burdens for your loved ones, and ensuring your wishes are carried out while you are alive.
Angulo Law, A.P.C. can assist you with creating such a plan that reflects your needs and wishes.
