No matter your age or assets, estate planning attorneys know why everyone needs an estate plan, as explained in the article “Estate planning: Not just for the wealthy” from The Las Cruces Bulletin. The word “estate” is the legal term meaning all a person’s possessions. An estate plan also does more than distribute possessions after a person dies. So, do you need an estate plan?
Establishing an estate plan protects people if they become disabled or incapacitated. If you can’t, it allows you to name another person to manage your financial and legal affairs. This is done through a Power of Attorney. Once you have the right person and the right Power of Attorney in place, it will be easier for the business side of your life to be taken care of if you are physically or mentally unable to complete basic tasks necessary to maintain the business side.
If you die without a last will and testament, your property will be distributed according to the state’s laws. Suppose you become incapacitated and there is no Power of Attorney in place. In that case, your family must go to court and pursue a guardianship and conservatorship proceeding to take charge of your medical care and property. It is not only stressful and expensive. There may also be decisions and actions taken before the court finalizes these arrangements. The family won’t be able to do anything while waiting.
People often come to an estate planning attorney’s office only after experiencing the loss of a parent or family member who didn’t have an estate plan. When they have had to go through court proceedings, not be able to access accounts and wrestle with the many decisions surrounding settling an estate, they find themselves vowing not to put their own loved ones through the same difficult situation.
An estate planning attorney will also help the family prepare for things like funeral services. These are not easy conversations, but they are necessary if you want your wishes to be followed. If, for instance, your preference is cremation rather than burial, these wishes would need to be made clear. Do you want your family to follow your faith’s traditions in a memorial service? They might not if you don’t tell them.
Funeral and memorial wishes should not be in your will. The last will and testament may not be reviewed for several weeks after death or longer after funeral and memorial services. Your estate planning attorney will know the best way to include your intentions in your estate plan.
An estate planning attorney can also help create a Special Needs Trust, which is used if someone in the family is receiving government benefits because of a disability. These benefits are “means-tested,” and an inheritance could make the person ineligible and undo all their service plans.
All parents must have a last will, which includes directions for who they want to become their children’s guardian to ensure that people of their choice raise them. Otherwise, this is another decision to be made by the court. A family member may not necessarily be chosen to care for your children.
Finally, your estate plan protects the family when there are complicated relationships among family members. Blended families, families with estranged members, or economic disparities among children are especially vulnerable to family fighting when parents die, and assets need to be distributed.
Having an estate plan provides peace of mind for everyone. It establishes your wishes, provides direction, avoids conflict and allows the family to grieve without guessing.
Reference: The Las Cruces Bulletin (Aug. 28, 2024) “Estate planning: Not just for the wealthy”
