Many people have the idea that estate planning is only for seniors. Or maybe they think that only very rich people need to worry about estate planning. But the reality is that people can benefit from having a plan in place at any age, regardless of your asset level. It is true that our firm focuses on the needs of elders. But taking a wider view allows you to see the benefit if the plan is tailored to your phase of life. Any adult can benefit from some aspect of estate planning.
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A younger person coming out of college or getting married and thinking of starting a family may be mainly concerned with health care issues such as what happens if one is in an accident and unable to voice decisions regarding care. No one would want to leave it up to the doctors or the governor of Florida to decide what extraordinary measures to take or not take when a loved one is in an extreme medical condition. Designating a health care surrogate can provide peace of mind and a clear order of precedence regarding medical calls. Similarly, naming an agent under durable power of attorney can let your trusted loved one keep your finances in order if you are incapacitated for some time.
Starting a family raises concerns regarding guardianship of your minor children, as well as providing for them financially in case something happens to the parents. Trusts can be established for financial concerns. Also, guardianship can be spelled out in the terms of a will. Additionally, one may wish to consider increasing life insurance policies and making sure the beneficiary designations are up to date.
As you move into middle age, the concerns may switch to providing continuity for your family if a high earner dies. Life insurance and trust-planning can help determine who manages the funds and set parameters on how to spend them. Also, you might have a business that you would like to provide for with succession planning. Also, in the middle years grandchildren often become a focus for planning.
Later in life the focus is more likely on death and disability. You need a will, trust or both to provide where your assets will go after you die. But you also need a plan in place for managing a chronic or debilitating illness. An advance directive for health care allows you to name your health care surrogate to make decisions for you when you cannot make your wishes known. A properly drafted durable power of attorney can be crucial in allowing your bills to get paid, taxes filed, and your overall financial situation to be managed by a trusted other person in case you become incapacitated.
Another consideration in our later years is the mental and physical health of your spouse. Even if you have capacity, your wife or husband may need assistance. What happens to a demented wife if her caregiver husband dies? Even if the husband had a will, it probably left everything to the wife. She is in no position to manage money. And the fact that she inherited money may prevent her from filing for Medicaid to help pay the cost of long-term care. In this situation it would be better if the husband had a specialized will that could provide that the assets were held for the wife’s benefit without going to her directly. Oftentimes an adult child can serve as trustee of this sort of trust, even if they live in another state.
So, remember that estate planning is not for just one phase of your life. As your life changes so should your estate plan. Once a plan is established it should be reviewed and possibly revised every few years. You should review it more often when there is a significant life change such as a divorce, death, bankruptcy or you move to a different state.
If you need to reconsider your estate planning, call Burzynski Elder Law at 239-434-8557 to speak with one of our intake specialists.