Yes, I will die. And you will too. So will my children, my husband, and my friends. I don't know when or how but I hope it won't be for a long time. The "how" part I don't EVEN want to dwell on since that would be morbid. But planning for our death is actually a kind and loving gesture...not to mention smart. I hosted a financial webinar last week and one of the topics included wills and estate planning. Did you know that if you had a will made in one state but later moved to a new state, your documents may not stand up in court? I didn't know that. I don't know about you but that would stink if I made all that effort to create a will and everything I planned would go to waste or stuck in probate for an extended time. So if you have moved to another state, check on the legal status of your will.
Okay, next. Don't think you make enough money for estate planning? Guess again. Even college students should consider estate planning. What?!! Yes. Here's why. 18-year olds in most states are considered adults and estate planning would cover the issue of power of attorney for medical care in the event of an emergency. Example: You have an accident with permanent brain injury and will require daily medical assistance. Who has legal authority? In many states, your parents legal decision-making authority for you ended once you turned 18 years old. What every single adult needs is an estate planning document called DURABLE POWER OF ATTORNEY. This will allow YOU to name a person who will make decisions for you and to act on your behalf when you are unable to do so yourself. Estate planning will help not only create documents explaining what to do with your money and property but also how you want to be taken care of should you become incapacitated. (As my husband proof-read this blog, we both realized our eldest son, Gabriel, who is in college, does not have an estate plan. Proof that it's something that is often neglected by many of us)
This next one, we have all heard. If you die without a will, each state has a plan for distributing your assets. It may not be what you want so it's a good idea to decide NOW where you want your money and properties to go before you die. Consider it like a "love letter". Actually I took that idea from a financial planner. Documents like a will and POA, power of attorney, are like love letters. You are letting everyone you love, know what to do with you and your money and belongings. One more important thing about your legal documents. What good are documents if no one knows where they are? Make sure your spouse, family, friend or whomever is suppose to make legal decisions for you, KNOWS its whereabouts. Tomorrow is Valentine's Day. Wouldn't it be a good time to create that "love letter"?
