Tag: Power of Attorney

A Power of Attorney May Not Be What You Think

Post author By Sara Thomas
Post date October 17, 2024
No Comments on A Power of Attorney May Not Be What You Think

If you’ve ever considered planning for your future or helped someone plan for theirs, you’ve probably heard the term “power of attorney.” But do you know what it is? The terms “power” and “attorney” carry weight but may not mean what you think. There are many misconceptions about what a power of attorney is and what authority it gives someone. And no, it doesn’t grant someone a temporary law degree.

I’ll address the misconceptions about powers of attorney so you know what to do if someone appoints you as their power of attorney. Then, armed with this knowledge, you’ll understand your legal responsibilities so you don’t inadvertently make any mistakes or run afoul of the law.

What is a Power of Attorney?

Let’s start with some background info. If a power of attorney doesn’t confer attorney status, then why is it called that?

Generally speaking, a power of attorney is a legal document granting someone else the authority to act on your behalf regarding your financial life. The term “power of attorney” is a bit of a historical holdover. Originally, powers of attorney were primarily used to appoint lawyers to represent individuals in legal matters. However, the concept has expanded over time to include appointing someone to act on your behalf for various purposes.

So, while you don’t need to be an attorney to hold a power of attorney, the term has continued due to its historical origins. Granting power of attorney is a way to indicate that an appointed person has the authority to act as your agent or representative, similar to the way an attorney would act on your behalf.

There are times when it’s necessary to preserve your assets, especially if you reach a point in life when you are unable to manage your own financial, legal, or healthcare matters, whether from old age, a terrible accident, or simply being out of the country for an extended period. In each of these cases, it’s possible that if you don’t have someone acting on your behalf, problems could occur. Your financial institutions could charge extra fees on your accounts, a fraudster could drain them, and you wouldn’t know it happened; taxes could go unpaid, your property could go into foreclosure, or your credit could be ruined. So, to prevent these horrific outcomes, you want someone else to be able to maintain your financial life on your behalf.

Types of Powers of Attorney

We don’t need to get too much in the weeds here (if you want to get in the weeds, though, read to the end, and I’ll show you how to book a call with me); know that there are different types of powers of attorney, each with its specific purpose. Here are some examples:

General Power of Attorney: This grants the agent broad authority to act on your behalf, including managing your finances and signing legal documents, even if you can handle your affairs. It becomes effective as soon as you execute the document. When might you want this? Say you travel for work, and you and your spouse have decided to refinance your mortgage. You may want your spouse to sign the paperwork on your behalf rather than wait until you’re back in town.

Springing Power of Attorney: This also grants authority to someone to manage your financial and legal affairs. You can execute the document whenever you want, but it doesn’t kick in until you can no longer make your own decisions.

Durable Power of Attorney: This type of general power of attorney remains in effect even if you become incapacitated. Think of it as the General and Springing Powers of Attorney combined.

Limited Power of Attorney: This grants the agent authority to handle specific tasks only, such as managing your property or making healthcare decisions.

Healthcare Power of Attorney: This grants your named agent authority to make medical decisions on your behalf.

Even though each of these documents operates differently, they all have one crucial thing in common: the agent’s power ends as soon as you die.

What No One Told You About a Power of Attorney: It Ends With Death

You may mistakenly believe that a power of attorney gives someone the right to access your financial accounts indefinitely. However, a power of attorney is a temporary arrangement that ends when the person who granted the power dies. What does this mean, exactly?

Let’s say your aging mother can no longer manage her affairs, and she executed a Power of Attorney to give you the authority. While she’s living, you can access her bank accounts to ensure all her bills are paid and paid on time. But as soon as she dies, you no longer have the legal authority to access her accounts. If she had a Will or no estate plan, you would have to file paperwork with the probate court and wait for the case to make it through the court system until the judge grants you authority again. In the meantime, if you can’t afford to cover her bills along with your own, you may have to decide to let her bills go unpaid. If she still has a mortgage on her house, for instance, and you can’t pay her mortgage and yours, the bank could begin to foreclose, and you could lose any equity she had. This equity could have been a significant part of your inheritance.

Going to court can be frustrating and time-consuming, and negative consequences can result if you haven’t planned appropriately.

The Good News

With some careful planning ahead of time, you can ensure all your bills get paid, and your assets are preserved for your loved ones. The way to do that is by creating a Life & Legacy Plan with a living trust. A trust is a legal arrangement that allows you to transfer your assets to a trustee, who manages them to benefit your beneficiaries. Notably, a trust survives your death, so there’s no disruption in the ability of someone to manage your finances after you die.

You owe it to yourself and your loved ones to ensure your power of attorney, trust, and related estate planning tools are created correctly and updated over time and that you understand the benefits and consequences of your plan.

How We Help You Preserve What Matters

Understanding the limitations of a power of attorney and the benefits of a trust is crucial for protecting your hard-earned assets. When you work with me to create a Life & Legacy Plan, I’ll empower you with the education you need so you can make the right choices for yourself and your family, that you fully understand how your plan works, and that your family has my support after you’re gone. Once your plan is in place, you can rest easy knowing that your wishes will be honored, your loved ones cared for, and your property protected.

Schedule a complimentary 15-minute consultation to learn more and start your journey toward a secure financial future.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Tags Durable Power of Attorney, Estate Plan, Estate Planning, General Power of Attorney, Healthcare Power of Attorney, Life & Legacy Plan, Limited Power of Attorney, Personal Family Lawyer, Power of Attorney, Springing Power of Attorney

The Surprising Connection Between Men’s Health and Estate Planning

Post author By Kylie Casper
Post date July 18, 2024
No Comments on The Surprising Connection Between Men’s Health and Estate Planning

As you may know, June marked Men’s Health Month, a time dedicated to raising awareness about health issues predominantly affecting men and encouraging the early detection and treatment of disease among men and boys. Gentlemen, you already know that taking care of your health allows you to prolong your life and enhance your quality of life. But have you seriously considered how your health directly impacts your future? Your legacy? The ones you love the most?

What we’re talking about here is estate planning, a comprehensive process that involves the management and distribution of your assets during your lifetime and after your death. It’s every bit as important as your physical health. I know, I know, it could sound weird to equate health with estate planning, but hear me out. By the end of the article, the connection will be clear.

The Link Between Your Health and Estate Planning

Estate planning often brings to mind wills, trusts, and other legal paperwork, which may be what you initially thought when you read the title of this article. However, I want to challenge that assumption with this: the documents are merely the byproduct of estate planning.

Estate planning focuses on ensuring your wishes are honored if you become incapacitated so you can live and die with dignity, as well as protecting your legacy.

What about health? How does your health connect with estate planning?

Your health plays a significant role in shaping your preparations for the future in general and how you structure your estate plan in particular. While “health” can refer to emotional, health, and spiritual health, and all are important, we’ll focus on physical health here. .

Longevity and Retirement Savings. Your physical health directly impacts your lifespan, affecting how long your retirement savings need to last. For example, if you maintain good physical health, you’re likely to live longer (yay!) and will need a more extensive plan regarding your assets for your longer life.

Healthcare Decisions. Consider the potential need for long-term care. Alzheimer’s or dementia could require long-term care solutions that you may or may not choose. Your estate plan is to ensure you’re financially covered for these possibilities and to make it clear how you want to be cared for if you cannot make decisions for yourself. There is a time when it’s too late for you to make your wishes known. By making these decisions now, you are taking control of your future health and care, and ensuring that your wishes are respected and followed.

This is why you need a healthcare power of attorney or a living will in your plan. A living will is a legal document that outlines your preferences for medical treatment if you are unable to make decisions for yourself. These documents designate the person (or people) you choose to make medical decisions on your behalf if you cannot. Your designated healthcare agent (or agents) only ensure that your healthcare preferences are respected and that your medical treatment aligns with your wishes. Without these documents placed, a judge (stranger) could appoint someone to act on your behalf. Maybe even someone you don’t trust or wouldn’t make making decisions for you. In a worst-case scenario, a judge could even appoint a professional conservator who could drain your estate financially.

Disability and Its Impact. Poor health can sometimes lead to disability, affecting your ability to manage your affairs. Including a disability clause in your estate plan ensures that your assets are managed according to your wishes, and you can oversee them personally. A disability clause is a provision in your estate plan that outlines how your affairs should be handled if you become incapacitated. A revocable living trust is helpful here, as it allows your chosen person or entity to manage your affairs without needing court intervention. Again, with a plan in place, a judge will make decisions for you that may differ from what you want.

Having gone through the potential consequences of not prioritizing your physical health and its direct link to your estate planning, let’s turn to practical steps you can take now to make sure you and your family don’t have to experience any negative consequences.

Practical Steps to Integrate Health and Estate Planning

Unless you’re already incapacitated and can’t make decisions for yourself, know that it’s not too late to take action. It’s not too early, either. Death and incapacity don’t discriminate based on age. When you face the facts and plan accordingly, you can live life more quickly, joyfully, and less stressed. Truly. By taking action now, you are being proactive and ensuring a better future for yourself and your loved ones.

So if you haven’t planned for the future, here are some practical steps you can take now:

Schedule Regular Check-Ups. It may seem obvious, but regular medical examinations are vital to help detect illnesses early and provide a clear picture of your health, which, as discussed above, is crucial for accurate estate planning. If you discover a new health condition, you can plan accordingly when you’ve caught it in time. If not, it could be to implement your plan place.

Update Your Estate Plan Regularly: As your health changes, so should your estate plan. Make it a habit to review and update regularly or whenever there is a significant change in your health. I can help you get your initial plan in place with a unique process I use called Life & Legacy Planning®, and I will always include a free review of your plan at least every three years. This ensures your plan works because it will be updated as your health, life, and assets are on time. Without updates, your plan will fail, sending your family to court and increasing the probability of conflict.

Discuss Your Plans Openly: Talk with your family about your healthcare wishes and how they relate to your estate plan. Taking this courageous, and maybe uncomfortable, step makes a big difference in decreasing the likelihood of conflict in your family. Discuss your preferences for end-of-life care, which can create conflict in your family if you haven’t clarified your wishes.

Consult A Professional Who Has Your Best Interests in Mind: I approach estate planning from a place of heart, always keeping your best interests, and by extension, your loved ones’ best interests, in mind. I help you get your plan in place but also help you keep your family out of court and conflict so your legacy is one of love and care. I can also help you navigate difficult discussions with your family about your wishes so you can feel confident knowing you’ve done all you can to preserve the family bonds.

How We Support You and Your Loved Ones

We recognize the integral connection between your physical health and estate planning needs. Our commitment goes beyond legal documentation; we ensure your life’s work is served with dignity and clarity. By understanding the specific challenges and opportunities that arise from your health, we tailor estate plans that protect not only your assets but also your well-being and your family’s future. Take a proactive step toward safeguarding your legacy and enhancing your peace of mind. Contact us to learn how our Life & Legacy Planning® process can align your health priorities with your estate planning goals. Schedule a 15-minute consultation to discuss your next best steps.

Tags Advanced Health Care Directives, Benefits of Professional Assistance in Estate Planning, Estate Planning, Men’s Health, Power of Attorney, Role of a Personal Family Lawyer in Estate Planning

Estate Planning

3 Estate Planning Documents Your Parents Need

Post author By Sara Thomas
Post date March 19, 2024
No Comments on 3 Estate Planning Documents Your Parents Need

As your parents gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a priority. One of the very best things you can do for your own future, and that of your entire future lineage – your children, grandchildren, and beyond – is to take great care of the people you were born to or raised by.

The questions to start asking are:

How will you help them if they become ill or injured?
Who will take care of their bills and make sure their health needs are met?
How do they want to be cared for, if and when they cannot care for themselves?

The starting place is open conversation and a power trio of estate planning tools swoop in to save the day: the General Power of Attorney, the Power of Attorney for Healthcare (including a Living Will), and the HIPAA Waiver.

Let’s break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter their net worth.

1. General Power of Attorney (POA)

A General Power of Attorney (or POA) grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the General POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems.

If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts is not sufficient, as it can be difficult to get access to bank accounts even with a POA in place, and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a trust, with you or someone you trust as the named successor Trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed.

2. Power of Attorney for Healthcare and Living Will

It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming — and trust me, it’s even more overwhelming during moments of medical crisis.

Thankfully, a Power of Attorney for Healthcare and Living Will allow your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times.

The Power of Attorney for Healthcare designates someone to make these medical decisions on behalf of your parents if they’re unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents’ values and preferences.

Meanwhile, the Living Will – also known as a Declaration to Physicians – outlines your parents’ wishes regarding life-sustaining treatments in the event they’re unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved ones peace of mind that the decisions being made around their care are what they themselves would want.

3. HIPAA Waiver

In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA Waiver, the ultimate tool for opening communication roadblocks in times of need.

HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals’ medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury.

By signing a HIPAA Waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.

How to Bring Up Estate Planning With Your Parents

The best way to bring up estate planning with your parents is to get your own planning handled first. Then, let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor Trustee in your parents’ Trust, or if you are going to be caring for aging parents at some point.

And, if you have worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents.

The Sooner the Better

You might be thinking, “Why the rush? Can’t we tackle this later?” Here’s the scoop: Life is unpredictable, and procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos, leaving your parents’ wishes unfulfilled and their affairs in disarray.

By proactively planning ahead, you’re not just checking items off a to-do list – you’re investing in your parents’ peace of mind and yours.

Don’t wait for a storm to hit – schedule a 15-minute call today to learn how our unique Life & Legacy Planning process is designed with your family’s well-being in mind, offering personalized guidance and support every step of the way.

Tags Estate Plan, Health Care Directives, HIPAA Waiver, Parents, Power of Attorney, Sandwich Generation

Estate Planning

Transition to Adulthood: The Legal Impact of Your Child Turning 18

Post author By Sara Thomas
Post date November 14, 2023
No Comments on Transition to Adulthood: The Legal Impact of Your Child Turning 18

Soon after the challenges of puberty and the excitement of high school, an even larger milestone looms: the 18^th birthday. It marks your child’s transition from childhood to adulthood, and with it new responsibilities and rights. From a legal standpoint, this milestone also brings significant changes that every parent should be aware of.

In the eyes of the law, an individual is considered a legal adult at the age of 18. This means that your child gains certain rights and privileges, including the ability to enter into contracts, vote, buy property, and make medical decisions for themselves. While this newfound independence is a crucial part of growing up, it can also pose challenges for parents, especially when adult children need their parents’ help or need someone to make decisions on their behalf.

We’ll explore the legal impact of what happens when your child turns 18, what it means for your ability to make legal, financial, and healthcare decisions on their behalf, and what tools you’ll need for a smooth transition to adulthood.

How The Law Changes Your Role As A Parent

On the day your child turns 18, your ability to make legal, financial and healthcare decisions for them essentially disappears in a blink. To give you a sense of how impactful this can be, if your young adult child is hospitalized and unable to communicate their wishes, healthcare providers won’t even legally be able to share your child’s medical information with you. Similarly, financial institutions won’t permit you to access your child’s accounts or make financial decisions on their behalf without their consent – or unless you’re a co-owner of their accounts.

This shift in decision-making authority can feel unsettling and can be particularly challenging if your child is still financially dependent on you, is in a medical emergency, or requires assistance in managing their affairs due to a disability. Thankfully, there are legal tools that can help parents and young adults navigate these new challenges.

Have Their Back With Powers of Attorney

A Power of Attorney is a legal tool that allows your child to designate the person they choose to make legal or healthcare decisions on their behalf. There are two common types of Powers of Attorney that can be valuable in this situation: a General Durable Power of Attorney and a Power of Attorney for Healthcare.

A General Durable Power of Attorney allows your child to appoint someone to manage their financial affairs in the event they become incapacitated or if they just want help managing their finances. With this in place, you can continue to assist your child with financial matters, even after they turn 18.

The important thing to remember however is that not every financial institution will honor a Power of Attorney, so while every adult should have this legal tool, it’s important to check with your specific institution and possibly set up your child’s accounts in a different way to ensure you have immediate access to them if needed. We’d be happy to discuss which options are best for you and your adult child.

A Power of Attorney for Healthcare grants someone the authority to make medical decisions on your child’s behalf if they are unable to do so, such as medication and treatment options, nutritional needs, and life-support measures. This is crucial to ensure that your child receives the care they want, even if they cannot communicate their preferences.

Only your child can put these measures in place, but encouraging them to create these legal documents is a proactive step in maintaining your ability to assist them when they need it most.

Stay Informed With a HIPAA Waiver

The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that protects the privacy of individuals’ medical records. Once your child turns 18, their medical information is protected under HIPAA, and healthcare providers are prohibited from disclosing it to anyone without the patient’s explicit consent – parents and family members included.

To maintain access to your child’s medical information, they must complete a HIPAA waiver. This document permits healthcare providers to share medical information with individuals specified in the waiver, such as parents or trusted family members.

Having a HIPAA waiver in place can be invaluable during medical emergencies when swift access to medical records is critical. It can also be a valuable tool for young adults who may simply appreciate a parent’s ability to speak to their doctors when they aren’t feeling well or are overwhelmed with the demands of work, college, or both.

Support Their Journey Into Adulthood Through Open Communication

Transitioning to adulthood is a significant step for both parents and children. While legal documents such as Powers of Attorney and a HIPAA Waiver are essential, it’s equally important to have open and honest conversations with your child about their wishes and the responsibilities that come with adulthood.

Discuss their healthcare preferences, financial decisions, and their expectations from you as a parent. Encourage them to consider creating these legal documents not only for your peace of mind but also for their own protection.

We invite you to reach out to our firm to ensure your child has the legal support and protection they need no matter what adulthood brings.

And if you aren’t sure how to talk with your adult child about these legal tools, we can help you start the conversation from a place of love, compassion, and collaboration.

Schedule a complimentary call today to get started.

Tags Estate Plan, Estate Planning Attorney, Health Care Directives, HIPAA Waiver, Power of Attorney, Young Adult, Young Adult Planning

Estate Planning

Flu Season Fundamentals: How to Keep Seniors Safe This Fall

Post author By Sara Thomas
Post date October 11, 2023
5 Comments on Flu Season Fundamentals: How to Keep Seniors Safe This Fall

The fall season is a beautiful time of year, but it also marks the beginning of flu season, which can pose a serious threat to your elderly loved ones. Fortunately, there are several steps you can take to ensure their well-being during the colder days ahead, including making sure you’re able to step in and help them with their medical and financial needs.

Keep reading to find out how.

1 | Create a Power of Attorney For Healthcare

A Power of Attorney (POA) for Healthcare (sometimes called a Medical Power of Attorney) is a legal document that authorizes someone you trust to make medical decisions for you if you are unable to do so yourself. If your senior loved one still needs to get a POA for Healthcare in place, now is the time to create one.

If they do have a POA for Healthcare, but it’s been a while since they created it, it’s time to review it to ensure it accurately reflects their current medical wishes and appoints a trusted individual as their agent for making healthcare decisions on their behalf.

Having a POA for Healthcare in place for your senior can provide peace of mind knowing that you or another trusted person can immediately step in and care for them during times of illness or incapacity, such as a severe case of the flu or pneumonia. A POA for Healthcare can also be used if you need to make a medical decision for your loved one during surgery or if they develop long-term memory problems.

Important: ensure that the POA for Healthcare for your senior loved one (or yourself) includes “living will” provisions either included in the POA or in a separate document, stating not just who should make decisions for you or your loved one, but how you would want those decisions to be made.

2 | Sign a HIPAA Waiver

Health Insurance Portability and Accountability Act (HIPAA) regulations are in place to protect an individual’s medical information. However, during flu season, it’s important to have the ability to communicate with your senior’s doctors to stay informed about their health.

A signed HIPAA waiver allows healthcare providers to share medical information with the individuals they’ve authorized to receive it. This can be crucial for keeping family members and caregivers in the loop about your senior loved one’s health status and treatment plans.

Whether your senior is feeling too ill to call their provider or needs help understanding their doctor’s instructions, a HIPAA waiver allows you to speak directly to your loved one’s provider to make caring for them as quick and easy as possible.

3 | Schedule a Check-Up

Before flu season is in full swing, it’s wise to schedule a comprehensive check-up for your senior loved ones with their healthcare provider. A check-up allows for a thorough assessment of their health, identification of any potential risks, and ensures that chronic conditions are being properly managed.

This proactive approach can help catch and manage new health issues early on and prevent complications down the line. Plus, having a check-up now will hopefully let your senior avoid the need to visit a crowded clinic waiting room during peak flu season because a health issue wasn’t detected sooner.

Don’t forget to bring a copy of your senior’s Power of Attorney for healthcare and their HIPAA Waiver to their provider’s office so they can scan it into their patient file to have it on hand and ready if needed.

4 | Create a General Durable Power of Attorney

To avoid exposure to the flu, colds, and rainy weather fall brings, many seniors appreciate the ability to stay closer to home. You can help keep them safe and make sure their daily needs are taken care of using a General Durable Power of Attorney. This legal tool lets your senior appoint people they trust to take care of non-medical decisions and tasks, like going to the bank, paying bills, or making purchases.

Consider setting up or updating a General Durable Power of Attorney to grant this authority when needed. Just note that not all banks and financial institutions honor a General Durable Power of Attorney, so contact your bank to verify if they do and then contact us right away to set up your loved one’s affairs in a way to ensure you can instantly step in to help with their banking needs regardless of their General Durable Power of Attorney.

Proactively Keeping Your Loved Ones Safe and Healthy

Caring for your seniors’ well-being goes beyond routine medical check-ups and yearly physicals. When flu season rolls around, it’s important to take a proactive approach to ensure your senior loved ones can count on you for support in managing their needs. By doing so, you’ll help them access the best possible care that aligns with their wishes.

By following these fundamental steps you’ll help ensure your loved ones stay safe, healthy, and cared for during the fall season and the new year ahead.

To make sure your senior has the legal tools they need to stay safe and healthy this year, schedule a complimentary 15-minute call with my office. We’ll be happy to share how we support our clients from a place of service and how we can make sure your entire family is well cared for now and in the future.

Tags Flu Season, Health Care Directives, HIPAA Waiver, Power of Attorney, Preventative Care, Senior, Senior Health

Estate Planning

6 Estate Planning Must-Do’s After You Say “I Do” – Part 2

Post author By Sara Thomas
Post date October 1, 2023
No Comments on 6 Estate Planning Must-Do’s After You Say “I Do” – Part 2

Getting married and starting a new chapter in your life is an exciting time. It’s also a time that requires a lot of housekeeping such as updating your address if your marriage includes a move, changing your tax filing status with your employer, and adding your new spouse to your bank and credit card accounts.

But did you know that creating (or updating) your estate plan should also be on your post-wedding to-do list?

Last week, we started to explore the key estate planning components every newlywed couple needs to protect their rights, wishes, and plans for their assets now and in the future. This week, we’re continuing the conversation with three more estate planning must-do’s for newlyweds. If you missed last week’s blog, be sure to click this link to catch up.

04 | A Living Trust

Are you surprised to see a Trust on our list before a Will? Here’s why a Trust is next on your to-do list. If you are newly married, there’s a strong likelihood that you are relatively young in your life and your career, which means there will be many changes in your assets, family, and wishes as the years go by.

Or, you might be re-marrying or getting married later in life and already have a well-established home, financial portfolio, and family that you are now combining with your partner’s life.

In either situation, you’re in a position of blending your life as a single person with the life and wishes of someone else, and the best way to make sure your wishes for your assets and your new family are honored during your lifetime and after your death is to legally document them through a Trust.

With a Will, assets must first pass through a court process known as probate before they can be transferred to your spouse or any other beneficiary. But once probate is completed, your loved ones can do whatever they want with the assets they received from you through your Will. The purpose and power of your Will ends when probate ends.

The court probate process required for Wills can take months or even years to complete, and can often lead to ugly conflicts between your spouse and other family members. Plus, a Will only governs the distribution of assets upon your death that are not already covered under your Trust or by your beneficiary designations.

With a Trust, no court involvement is needed, and you can set parameters for how you want your assets distributed over a predetermined amount of time. For example, if you have children or plan to, you can ensure the assets are safeguarded in the Trust until your children reach a certain age. If you have children from a prior relationship, you can also make sure that your new spouse is financially supported by your assets during their lifetime but that your remaining assets will be returned to your children after your new spouse’s death instead of going to your spouse’s side of the family.

Having a Trust hold your children’s inheritance can also help eliminate conflict between step-siblings and between your children and your spouse. Even if your children are adults, leaving their inheritance in a Trust can help avoid family conflict and provide them with a lifetime of asset protection from creditors and lawsuits.

Finally, using a Trust as the main vehicle to distribute your assets during your incapacity and after your death allows you to design a custom plan for what happens to your assets far into the future, ensuring that the goals you have for your loved ones are nourished and that your assets are carefully managed and protected even after you’re gone. You can do this by creating contingencies and incentives in your Trust that encourage your heirs to behave in certain ways. For example, for your sibling to receive their inheritance you could require that they seek drug counseling first, or that your children pursue a course of study before receiving a distribution of income from the Trust.

05 | A Will or Pour-Over Will

A Will allows you to designate who should receive any assets of yours that aren’t already included in your Trust or directed by beneficiary designations. Ideally, your Trust will include all of your assets. But, if you forget to add an asset to your Trust, a Will ensures that the forgotten asset is “poured over” into your Trust and included under its terms for how you want your assets to be distributed and managed.

If you don’t have a Trust, your Will designates who will receive your assets through the court probate process. Your Will may also direct any charitable donations you want to make and can be used to create a Trust upon your death if the circumstances call for it- such as if one of your heirs is disabled at the time of your death.

Even if you don’t think you need a Will because you don’t have many assets or have other estate planning pieces in place, having a Will as a backup or “pour-over” tool is an essential part of your estate plan. Plus, depending on state law and whether or not you have children, your assets may not get divided according to your wishes if you don’t have a Will, so it’s always a good idea to create one (or update your old one) when you get married.

06 | Legal Guardians for Your Minor Children

Finally, if either you or your spouse have minor children from a prior relationship, or if you are planning to have kids of your own soon, it is crucial that you select and legally document guardians for your children. Guardians are people legally named to care for your children in the event that you or your spouse die or become incapacitated.

To make sure your children are never left in the care of strangers for even a minute, it’s crucial to name both long-term and short-term legal guardians for your kids. That way, someone you trust will always have the authority to be with your children during a short-term emergency or a long-term situation.

Do not assume that just because you have named godparents or have grandparents living nearby that they will automatically have the authority to care for your children if you can’t. The only way to ensure that your children are cared for by the people you would want is to name guardians in a legal document. Otherwise, you risk creating needless conflict between family members and a potentially long, expensive court process for your loved ones.

Planning for a Lifetime of Happiness

If you’re newly married or are planning to be married soon, I wish you true happiness in your marriage and your new life ahead, and I truly want to help you protect the dream and future you are building with your new spouse. With the excitement of your wedding coming to an end, now is the best time to create an estate plan for your new family, and it may even be the most crucial time to create a plan for them.

We often think that incapacity and death simply don’t happen to newly married couples, but unfortunately, no one can predict the future. If an illness or tragedy does strike you or your new spouse, the ramifications of not having an estate plan in place can be even worse than for a couple who has been married for a long time.

No matter the stage of your relationship or marriage, I can help make sure your spouse and family are protected and cared for now and for years to come. Through our Life & Legacy Planning™ process, I’ll guide you from the heart on the estate planning questions and decisions that are essential for your family’s well-being and that feel comfortable to you.

To learn more about how I can help protect your family’s future, schedule a free 15-minute discovery call today.

Here’s to a very happy ever after.

Tags Beneficiary Designations, Estate Planning, Newlyweds, Personal Family Lawyer®, Power of Attorney

Estate Planning

6 Estate Planning Must-Do’s After You Say “I Do” – Part 1

Post author By Sara Thomas
Post date September 22, 2023
3 Comments on 6 Estate Planning Must-Do’s After You Say “I Do” – Part 1

Wedding season is winding down, and if you are a newlywed or are planning to tie the knot soon, it’s time to make your first legal move as a married couple – creating an estate plan. With all the joy and happiness a new marriage brings, planning for your potential incapacity and future death may feel out of place, but creating your estate plan as part of your post-nuptial to-do list is the greatest gift you can give your new spouse.

A lot changes once your marriage is official, but how you and your spouse want your finances to be managed or how you would want medical decisions to be made for each other are not automatically documented when you say “I do.”

If you become incapacitated for any reason before your estate plan is complete, your spouse would not have the legal authority to make medical decisions for you even though you’re married. Your loved one would also have no access to your bank accounts, and in the event of your death, could even be put into a position of losing the home and possessions that you owned together.

Instead, your choices for yourself, each other, and your life together need to be properly documented to ensure your wishes are respected and honored no matter what the future holds.

Here are 6 essential estate planning tools you need to put in place right now.

01 | Updated Beneficiary Designations

One of the easiest estate planning tasks that newlyweds often overlook is updating their beneficiary designations. Some of your most valuable assets, such as life insurance policies, 401(k)s, and IRAs, do not transfer via a will or trust. Instead, they have beneficiary designations that allow you to name the person (or persons) you’d like to inherit the asset upon your death.

While every couple should consider creating and using a Trust to transfer retirement (only with the guidance of a lawyer, as this can be complex) or life insurance distributions, you shouldn’t wait until your Trust is created or your estate plan is complete to update your beneficiary designations. Until your estate plan is finished, if you would want your spouse to receive your retirement account benefits or life insurance at your death, you need to proactively name your spouse as your primary beneficiary, and then name at least one contingent, or alternate, beneficiary in case your spouse dies with or before you.

If you have minor children at home, remember to never name a minor child as a beneficiary of your life insurance or retirement accounts, even as a contingent beneficiary. If a minor is listed as the beneficiary, the assets would be distributed to a court-appointed custodian, who will be in charge of managing the funds until the child reaches the age of eighteen, at which point the funds would be distributed to them outright, to do with what they want. Instead, you can set up a Trust and name the Trust to receive your life insurance or retirement account benefits.

If you have children or you plan to have children in the future, you should set up a Trust to receive those assets instead so they can be properly managed for your child’s well-being while keeping the funds safe from any future overspending, debt, or legal trouble your child may have. Creating a Trust to hold and distribute assets to your children is even more important if your marriage creates a blended family, as it will ensure your children inherit from you in the way you want and avoid conflict between step-siblings.

02 | A Durable Financial Power of Attorney

Estate planning is not just about planning for what happens when you die. It’s equally about planning for your life and the unexpected events life throws your way like a serious illness or accident that may leave you incapacitated.

If you become incapacitated and have not added your spouse as an owner on your bank accounts or legally granted them permission to manage your financial and legal interests, they may have to petition the court to be appointed as your guardian or conservator to handle these affairs for you. This is surprising to many newlyweds and long-time married couples who assume their spouse has automatic access to all of their assets at any time. Sadly, this isn’t the case, and without giving written permission to your spouse through a Durable Financial Power of Attorney, that authority could be given to someone else by the court, even a stranger or a family member you would never want to have control over your financial life.

A Durable Financial Power of Attorney would grant your spouse the immediate authority to manage your financial, legal, and business affairs in the event of your incapacity, and give them a broad range of powers to handle things like paying your bills and taxes, collecting government benefits for your care, selling your home or car, and managing your banking and investing.

Creating a Durable Financial Power of Attorney is especially important if you don’t live in one of the community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In every other state, the law does not assume your spouse has any ownership of property in your name alone, which means your spouse could be forced to move out of your shared home or give up your shared property with little notice and little legal recourse.

03 | A Power of Attorney for Health Care and Living Will

Where a Durable Financial Power of Attorney gives your spouse the authority to manage your financial and legal matters, a Power of Attorney for Health Care lets them make medical decisions for you if you can’t communicate them for yourself.

For example, a Power of Attorney for Health Care would let your spouse make decisions about your medical treatment if you are in a serious car accident or hospitalized with a debilitating illness. If you don’t name your spouse as your Power of Attorney for Health Care and you do become incapacitated, your spouse would have to petition the court to become your legal guardian before they can make any major medical decisions on your behalf.

Even though your spouse is generally the court’s first choice for your legal guardian, relatives may also petition the court to be appointed as your guardian, which can create severe conflict and financial strain in your family. Creating a Power of Attorney for Health Care that names your spouse as your decision-maker far in advance will spare your spouse the time, money, and stress involved with a court guardianship process.

Within or attached to your Power of Attorney for Health Care should be your Living Will. A Living Will explains to medical providers and to your decision-maker how you would want your medical care handled, particularly at the end of life. Because a Power of Attorney for Health Care and a Living Will go hand-in-hand, they are often combined into a single document.

In your Living Will, you can explain your wishes for life support, whether you would want hydration and nutrition supplied intravenously, and even what kind of food you want and who can visit you in the hospital. It is always a relief to your spouse to have instructions and wishes written out by you in advance that they can lean on, rather than having the added stress and trauma of trying to guess what your wishes would be in these situations.

Through Sickness and Health, We Can Help

Between moving in together, establishing a new routine, and combining your finances, estate planning can seem like a low priority for newlyweds. But in reality, estate planning shortly after getting married is one of the smartest decisions you can make for your marriage. Creating your plan shortly after your wedding is also the most convenient time to plan since you will inevitably be going to the bank and contacting your financial institutions to update your new marital status.

To make sure your new spouse has immediate access to your assets and that you can always care for them in the way they would want, give me a call. It would be my honor to help you and your spouse plan for your new life and your future through my unique, heart-centered process.

If talking about finances and death shortly after your wedding feels heavy, don’t worry. I’ll guide the discussion in a way that feels casual, natural, and helps facilitate open communication between you and your new spouse.

Don’t forget to check back next week for part two of this series!

Tags Beneficiary Designations, Estate Planning, Newlyweds, Personal Family Lawyer®, Power of Attorney

Estate Planning

Vacation Ready: Essential Legal Preparations for a Worry-Free Getaway

Post author By Sara Thomas
Post date June 30, 2023
1 Comment on Vacation Ready: Essential Legal Preparations for a Worry-Free Getaway

Vacations are a time to relax, unwind, and create beautiful memories with your loved ones. But before you set off on your adventure, it’s essential to ensure that your legal affairs are in order so you can fully relax during your travels.

Can’t imagine doing one more thing before you take some much-needed time away?

Don’t worry! I’m here to guide you through these important tasks, so you can enjoy your vacation worry-free. Plus, these steps only take a little time to complete and can provide you with peace of mind knowing that you have made proper arrangements if the unexpected happens to you or your family while you’re away.

Let’s dive in! (No pool puns intended!)

Create Powers of Attorney

Whether you’re traveling overseas or just a few hours away, it’s crucial to have Powers of Attorney in place for both health care and financial matters before you leave.

A Healthcare Power of Attorney designates someone you trust to make medical decisions on your behalf if you become incapacitated during your vacation. While no one plans to become incapacitated, a slip on the diving board, an injury while boating, or a parasite caught from local cuisine can happen.

Similarly, a Financial Power of Attorney empowers a trusted individual to manage your financial affairs for you. With a Financial Power of Attorney, you can give someone the authority to manage your investments or pay your bills away while you’re gone, or just have it as a safety net in case you become incapacitated or can’t be reached while traveling.

By having these documents prepared ahead of time, you can ensure that no matter what hiccups you run into on your travels, your wishes for your health will be respected and your financial affairs will be handled according to your instructions, even when you’re away.

Nominate Permanent Legal Guardians for Your Kids

As a parent, naming a Permanent Guardian for your children is one of the most important decisions you can make. While it’s a difficult topic to consider, designating a Permanent Legal Guardian ensures that your children will be cared for by someone you trust if the unexpected happens while you’re on vacation.

It’s a good idea to take a little time to choose someone who shares your values, loves your children, and is willing to take on the responsibility of raising them. However, anyone you trust to raise your kids is a better choice than leaving the decision up to a judge who doesn’t know you or your family.

By documenting your chosen Guardian, you make sure your children will be cared for by someone who loves them and knows them if the unthinkable happens to you, and you can always update your choice at any time in the future as your children and their relationships change over time.

Designate Short-Term Guardians for Your Kids

In addition to naming a Permanent Guardian, it’s equally crucial to designate short-term Short-Term Legal Guardians for your children. Short-Term Guardians step in when the Permanent Guardian lives far away, or in case of a short-term, immediate emergency.

You can give multiple people the authority to be your child’s Short-Term Guardian, including relatives, neighbors, or nannies. When planning a vacation, it’s a good idea to name any adults who your child will be staying with while traveling with you or staying home.

Discuss this arrangement with the individuals you’ve chosen and make sure they’re aware of their roles and responsibilities. By establishing Short-Term Guardians and Medical POAs, you can ensure that your children are well-cared for in the event of an emergency.

Tell the People You Trust About Your Plans

Last but not least, make sure that the people you trust know about your travel plans and the preparations you’ve made, including where you’ll be staying and how to get in contact with you.

Let them know about any legal documents you’ve put in place, and how to access them if needed. Share this information with your chosen Guardians, family members, and close friends. By keeping everyone in the loop, you can ensure that your wishes are known and your loved ones can act swiftly and effectively in case of an emergency.

You should also provide your loved ones with my contact information in case they need copies of your Powers of Attorney or kid’s Guardianship documents or need them delivered digitally.

Estate Planning for The Life (And Vacation) You Deserve

As you pack your bags and prepare for your vacation, don’t overlook the importance of handling your legal affairs. Taking the time to create Powers of Attorney, Permanent and Short-Term Legal Guardians for your children, and communicating your plans to trusted individuals can provide you with peace of mind and save your family incredible stress if there’s an emergency while you’re away.

To ensure that these documents are prepared correctly and in accordance with your state’s laws, I encourage you to contact me. I start by guiding all of my clients through a unique process I call the Family Wealth Planning Session. During the Session, I get to know you and your family on a personal level and review exactly what you own and who you love to make sure everything and everyone is protected and cared for in the best way possible when you pass away or if you become incapacitated.

And if we find that things wouldn’t go the way you wanted if something happened to you, I can help you create a custom estate plan that leaves no rock unturned.

Don’t let the joy of vacation be overshadowed by the “what if’s.” Contact me today for a free 15-minute call to learn more.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

Tags Estate Plan, Family Vacation, Guardian, Legal Preparations, Personal Family Lawyer®, Power of Attorney, Vacation

Recent Posts

Recent Comments

Archives

Categories