This week we're lucky to have the input and contributions of George Menden. He's an attorney that works in the area of estate planning (and Darla's B.'s brother!). Thanks, Mr. Menden, for your help on this topic! Here are some pointers drawn from the information he shared with me. Please bear in mind this cannot be considered specific legal counsel, but it's still a good place to start!
When it comes to end-of-life considerations, there are two main areas you need to consider. The first is planning for illness/disability; the second is what happens after you die.
DISABILITY:
Five things to take care of NOW to be prepared for disability:
1. Advance health care directive (aka "living will")
2. Health care power of attorney
3. Financial power of attorney
4. Disability insurance (see last week's post!)
5. Long-term care insurance (see last week's post!)
What are all these???
Advance health care directive (aka "living will"): In case you're not able to make decisions about your own care, this is a legal document that lets you set forth what measures you would/would not like to be taken to sustain life, your preferences for pain management, place of care, etc. Georgia has its own specific form which you need to use (Menden emailed me Georgia's form, so email me if you'd like to get it!).
Health care power of attorney: Legal procedure/document in which you set forth a specific person ("agent") who has authority to make health care decisions for you in the case that you cannot for yourself.
Financial power of attorney: Just how it sounds! Legally appointing someone to have the authority to make financial decisions and act on your behalf.
Disability and long-term care insurance -- see last week's post!
DEATH
In the event of loss of life, the main consideration is how the estate will be dealt with. These planning decisions are crucial so that YOU maintain control of what happens and how. By planning ahead, you can minimize the role of probate courts, prevent lengthy delays, hopefully avoid confusion and hurt for your family... and all the added expense/attorney fees these problems may require.
Here's what you need to consider NOW and talk with your attorney to nail down:
1. Estate -- what happens to it? how will it be divided or passed on? how taxes will impact your net worth? do you need/want to set up a trust?
2. Childcare -- if you have dependents, how will their care be provided for?
3. Trusted relations -- who do you trust to manage all this after you're gone? (to be executor, trustee, or otherwise)
The main way these questions are addressed is by putting together your last will and testament. This is a legal document that sets forth the disposition of your property upon death. It can be changed (aka "revocable") during life. It is irrevocable after death. It must be executed with certain legal formalities to be valid though. Here are George Menden's Ten Most Common Will Mistakes for you to think about:
1. No Will
2. Improperly executed Will = No Will
3. Failure to sign Will = No Will
4. No self-proving affidavit attached to Will
5. Failure to update Will
6. Failure to title assets to take advantage of Will (a/k/a indiscriminant use of joint tenancy with rights of survivorship or POD/TOD property)
- birth, death & adoption
- marriage, divorce & separation
- tax law changes
- changes in wealth or specific assets
7. Failure to coordinate beneficiary designations for life insurance, retirement plans, IRAs, and annuities with will
8.Marking on Will to make changes
9. 100% to Spouse Will where Credit Shelter Trust would avoid estate taxes
10. Failure to store Will where it can be located upon death
Some good food for thought! Hopefully this gets you thinking.... and motivated to learn what you need for your specific situation. Don't delay!
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