POOR ESTATE PLANNING CAN HARM YOU AND FAMILY MEMBERS

Close to half of the people in the United States who are 55 or older have failed to properly plan what is become of them or their estate if they are incapacitated or die. A recent study of 3,000 Americans 55 years of age or older by Merrill Lynch and AgeWave has found that nearly half (45%) have no Will and only 18% have a Will and the other two crucial documents that they and their family needs in the event of incapacitating illness or injury.

A Will is a legal document that directs how your assets are to be distributed upon your death. Even if you have few assets, a Will is important for a variety of reasons. If you die without a Will - called “dying intestate” - State law will dictate who receives your possessions, you have no control who administers your estate and a judge will ultimately decide who will raise your children.

In preparing a Will, you direct who will get your assets and under what conditions. A Will also has your nomination for the person who will administer your estate and get everything concluded after you are gone. Lastly, if you are the parents or guardian of under-aged children, your Will will allow you to choose who you want to raise the children and who will administer their assets until they become adults.

The other crucial estate planning tool that are often missing according to the 2019 Merrill Lynch and AgeWave survey are a power of attorney and a living will. These two legal directives are especially important as we are living much longer that earlier generations have and they make it clear what you wanted in case you become incapacitated or incompetent.

A power of attorney (POA) gives someone other than yourself your permission to handle your affairs if you are not dead, but are unable to make decisions. A POA can be very broad and can let a person decide and act for you generally when you cannot. Similarly, a POA can be very specific and only grant a person do certain things, like make medical decisions on your behalf when you cannot.

Despite its unusual name, a “living will” is not a Will like we discussed above. A living will, also known as an advanced medical directive, is an outline of your wishes of your medical care and directives if you become critically ill are no longer able to express or convey your own directives. A living will does not some one else make decisions for you but, rather, gives instructions on how you want things handled if you cannot any longer.

Estate planning at any age and any amount of wealth is a necessary task. Although uncomfortable for some to think about and discuss your own frailties and mortality, it is important that you take control of your future by stating clearly and legally your wants and wishes. In so doing, you will rest better knowing that you have planned ahead for you and your family regardless whatever the future may hold in store.