ESTATE PLANNING EXAMPLES

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Young Adults

Every young adult should have certain legal documents in place to bridge the gap between childhood and adulthood.  Whether they are leaving the nest for college or to explore the world in another way, parents face the realization that they no longer will have the ability to fully participate in the affairs of their young adult child.  The young adult is left potentially exposed in matters concerning finance and health care.  Naming a parent, or trusted adult, as an agent under both a Power of Attorney and Health Care Proxy can alleviate some of the concerns that flow from the wonderful and challenging time a young adult is launching out on their own.

Couples

Whether married or unmarried, as a couple you should consider planning together to ensure your wishes and goals are legally enforceable should one of you become incapacitated or pass away. For example, granting authority to your partner or spouse under a Power of Attorney and Health Care Proxy will provide that they are able to act on your behalf if you become disabled or incapacitated. If you are unmarried, and you wish to leave property to your partner when you die, a Living Trust may be advisable if you believe a family member may contest your wishes.

Single Adults Without Dependents

You are independent, living on your own and managing your own affairs. In planning for your future, it is important to consider who will manage your affairs should you become disabled or incapacitated.  A Power of Attorney allows you to choose someone you trust to act in your best interest for financial matters. Through a Health Care Proxy, you appoint someone you trust to communicate your wishes during a health care crisis, if you cannot communicate your wishes yourself.  You should also consider who you would want to handle your estate upon your death, as well as who you would like to receive your property upon your death. If you do not have a Last Will and Testament or Trust in place at the time of your death, the distribution of certain assets (assets not jointly held with another, and without a named beneficiary) is decided by the rules of intestacy.  These rules determine who gets your property, depending on who of your relatives survive you at the time of your death.  Depending on your circumstances and goals this may or may not be desirable. 

Families with Young Children

If you have a child under the age of 18, it is especially important to have an estate plan.  Through a Last Will and Testament, you may nominate a guardian to care for your child should you pass away before they reach adulthood. You may also name a trustee to manage the assets that you leave to your minor child. Through careful planning, inherited assets can be managed on your child’s behalf even after the child reaches adulthood. A Power of Attorney and Health Care Proxy are also important to authorize someone to act on your behalf during your lifetime in matters concerning your finances and health care.

Adults Retired or Planning Retirement

You are working towards retirement or already retired.   You may be thinking of a career change, devoting more time to hobbies or causes or taking those trips you always delayed.  Now is the time to create an estate plan or revisit the estate plan you already have in place. 

Questions to think about:

Who are the trusted individuals in my life who would step in to handle my affairs if I became sick or incapacitated?

What are my current family dynamics? 

Who is legally entitled to inherit my property when I die?

Are there charities or causes I wish to include in my estate plan?

Do I have long-term care insurance?

The answer to these and other questions will determine the documents your estate plan should include.