This day and age, everyone should have some form of estate planning in place. Many avoid estate planning because it brings up uncomfortable thoughts about death and how property will be distributed. This article will discuss several reasons why everyone should have a will or trust in place.
First, let us talk about children. You want to ensure that your children will be taken care of by a loving, responsible person if tragedy strikes. In most cases, the surviving parent will assume responsibility of the child. If both parents pass away, and neither parent leaves a will naming a guardian, the child may be placed with a guardian you do not approve of. Failure to name a guardian, will result in the court making the decision of appointing a suitable guardian for the child. You can avoid that issue now by electing a person or persons in your will who will become the guardians of your child if you pass away.
A will or trust can also ensure that your property will be left to those dearest to you, rather than being divided up by a court appointed executor in a manner set out by the laws of your state. You may have a collection of artwork that is of no monetary value, but carries extreme sentimental value between you and a loved one. With a will, you can ensure that the artwork goes to that special person. You may also have money that you want to set aside for the education of your grandchildren. You can make this happen by setting up a trust for the grandchildren in your will. In addition to leaving property or money to loved ones, you also have the ability to specifically exclude a person from your estate. A will can ensure that all of these wishes are carried out.
Due to advances in medical care and longer life expectancy, medical decisions are becoming a more serious issue that must be addressed. An advance medical directive to physicians, also known as a “living will”, lays out exactly what types of treatment you do or do not want if you are in critical condition. Do you want to be kept alive by artificial means, or do you want to limit your treatment to medication for comfort? Without an advance medical directive in place, you may be unable to express your desires, and left to the mercy of others to make very personal decisions for you.
In addition to an advance medical directive, a financial and medical power of attorney can be put in place, allowing another person to address your financial and medical issues if you become incapacitated. A financial power of attorney allows the person access to your financial accounts, and allows him or her to carry on your business dealings in your absence. A medical power of attorney allows the person access to your medical records and allows him or her to speak to your doctors, make appointments, and possibly make medical decisions if necessary.
This article covers only a few of the reasons why having a will or trust is so important . Having a valid will or trust in place, with powers of attorney and advance directives to physicians, is vital this day in age. To many, these documents are just paperwork, and there will be plenty of time to address these issues in the future. When tragedy strikes and no estate planning instruments have been put in place, it is always the loved ones who suffer. Don’t put them in that position.
Randall Slagle
www.randallslagle.com