Everything you own is part of your estate.
Your home, belongings, car… you name it. If you own it, it's included.
As you get older, it becomes increasingly important to protect the future of your family and loved ones, those who will rely on your estate. However, life is full of surprises. Age only plays a minor role, which is why it's important to have a plan in place for your estate at an early age.
An estate plan ensures your desires are carried out when it comes to your family's financial wellbeing. Considering the impact of not having this done if you become ill or pass away, you need a plan.
The state of Texas has already made one for you. I'm happy to walk you through it, however, it is important to recognize this is a very general plan. How well does a one size fit all shirt or hat really fit you?
A well-crafted, personalized estate plan will not only provide instructions for who you want receiving your belongings but will also take into account your preferences on all the specifics.
Who will provide care for you if incapacitated? What if you need a guardian for your young children? Are you a business owner? If so, how will your value in that business transfer? Will the changing of hands for your assets provide a tax burden you never expected on your family or loved one?
These questions (and many, many more) should be addressed in an estate plan.
The process
At Ellen Williamson Law, PC, I start the process with a will. This document will spell out your wishes for how your property will be handled after your passing and will designate an executor (someone of your choice) to carry out or probate the will. Essentially, the will ensures your estate is distributed as you want, in the timeframe you desire.
Recalling the idea that an estate plan should be customized, it's important to note that an inter vivos, or "living" trust, could be a valuable complement to your will. For more information on a living trust, click here.
In addition to the will, the basic estate plan package includes:
Declarations of Guardian for Self and (if applicable) Minor Children
It's important to be able to choose in advance who your guardian would be if something drastic occurs. It can be even more important to choose who your guardian would not be. These Declarations provide you that opportunity, as well as the opportunity to nominate someone to act as guardian for minors if both parents were to pass away.
Advance Directive to Physicians
This directive empowers you to spell out your medical wishes in the event you are unable to speak for yourself. It helps your caregivers understand your desires and can provide peace to your family members, knowing they are honoring your wishes.
Financial Power of Attorney
The Financial Power of Attorney enables you to appoint a family member or friend to act as your representative in financial transactions and matters. It also allows you to provide for several variables, such as if this power should be effective immediately or only once you are incapacitated.
Medical Power of Attorney
Working hand in hand with the Advance Directive, the Medical Power of Attorney allows you to designate a trusted friend or family member to make medical care decisions on your behalf, as well as provide them access to your medical records. Instead of following a one-size-fits-all state formula, you can rest easy knowing someone familiar with your desires is speaking for you.
This estate plan package also includes the HIPAA Authorization, enabling loved ones to access your medical records, and an Appointment for Disposition of Remains, which allows you to state your wishes for burial/cremation and who should be in charge of this process. Finally, as life can change quickly, I offer an annual review of the estate plan to ensure every aspect is up to date.
As you can imagine, your passing or incapacitation may place an enormous level of stress and sadness on your loved ones. Having to deal with the uncertainty of your wishes or undergoing a burdensome process to receive the assets you have left behind for them is an unnecessary addition. A professionally-crafted estate plan can remove the additional stress placed on them, as well as reduce the number of potential arguments surrounding these major decisions.
If you're ready to lighten your family's emotional load by preparing early, schedule an appointment today.