Estate Planning Essentials

By Lisa Cunningham, Director of Communications

It’s a new year, which means you have a new chance to do all those things you put off last year. Like, say, writing a will.

Do I hear crickets?

Let’s face it: no one likes to think about writing a will. It is the most final of all documents, the one piece of paper which reminds us that our time on earth will, inevitably, come to an end.

But if we change the way we think about a will — not as a reminder of the end of life as much as it is a document to protect those we love and the things we’ve worked so hard for — we may not feel so unsettled in creating one.

The truth is, a will is just one of three documents every adult should be sure to have. In this post, we’ll briefly describe the three essential estate planning documents every adult needs — and why you shouldn’t put off creating them — not one more day.

Last will and testament

Did  you know that more than half — 70 percent — of Americans do not have a last will and testament? Not having one ensures the government will divvy up your assets through a process called probate, and almost always ensures infighting among family members.

A will is simply a legal document which specifies all of your last wishes — everything from your funeral and burial to how you would like property distributed to beneficiaries. It also allows you to name guardians for minor children.

Living will

A living will allows you to make important healthcare decisions for yourself in advance, while you are still of sound mind and in good health. These decisions include whether or not to continue your life in the event you are ever placed on life support and what should be done with your organs in the event of your death.

Durable power of attorney/Durable power of attorney for healthcare

These documents allow you to appoint someone to make financial and legal decisions on your behalf. The healthcare power of attorney takes effect in the event of your incapacitation.

A durable power of attorney can be put in place for any number of reasons, such as when you travel out of the country for work or vacation. A durable power of attorney will allow your appointee to:

• Handle banking decisions
• Manage property
• File tax returns
• Collect social security benefits
• Handle insurance and retirement benefits

And almost any other legal task you can imagine.

How do I create these documents?

You can consult with an attorney of your choice to create these documents, purchase software and create them yourself, or create them online for a nominal fee, via the website legalzoom.com.

But the bottom line is, whether you spend thousands of dollars on a private attorney to draw them up or use online software, you just need to get them done. After all, it’s not a matter of if you’ll need them, but when.

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