6 Reasons Why You Should Have An Estate Plan

 

 

October 19th-25th, 2020 is National Estate Planning Awareness Week, so if you’ve been thinking about creating an estate plan, but still haven’t checked it off your to-do list, now is the perfect time to get it done. Last week I wrote about the first big reason you might want to get your planning in place (sparing your family from a lengthy and costly court proceeding). Read on for the second big reason you should consider not putting off your planning any longer:

  1. You have no control over who inherits your assets
    If you die without a plan, the court will decide who inherits your assets, and this can lead to all sorts of problems. Who is entitled to your property is determined by California’s intestate succession laws, which hinge largely upon whether you are married and if you have children.

Spouses and children are given top priority, followed by your other closest living family members. If you’re single with no children, your assets typically go to your parents and siblings, and then more distant relatives if you have no living parents or siblings. If no living relatives can be located, your assets go to the state.

But you can change all of this with a plan and ensure your assets pass the way you want.

It’s important to note that state intestacy laws only apply to blood relatives, so unmarried partners and/or close friends would get nothing. If you want someone outside of your family to inherit your property, having a plan is an absolute must.

If you’re married with children and die with no plan, it might seem like things would go fairly smoothly, but that’s not always the case. If you’re married but have children from a previous relationship, for example, the court could give everything to your spouse and leave your children out. In another instance, you might be estranged from your kids or not trust them with money, but without a plan, state law controls who gets your assets, not you.

Moreover, dying without a plan could also cause your surviving family members to get into an ugly court battle over who has the most right to your property. Or if you become incapacitated, your loved ones could even get into conflict over your medical care. You may think this would never happen to your loved ones, but we see families torn apart by it all the time, even when there’s little financial wealth involved.

You should create a plan that handles your assets and your care in the exact manner you wish, taking into account all of your family dynamics, so your death or incapacity won’t be any more painful or expensive for your family than it needs to be.

 

Here's why you need an Estate Plan - My Press Plus

October 19th-25th, 2020 is National Estate Planning Awareness Week, so if you’ve been thinking about creating an estate plan, but still haven’t checked it off your to-do list, now is the perfect time to get it done.

When it comes to putting off or refusing to create an estate plan, your mind can concoct all sorts of rationalizations: “I won’t care because I’ll be dead,” “I’m too young,” “That won’t happen to me,” or “My family will know what to do.”

But these thoughts all come from a mix of pride, denial, and above all, a lack of real education about estate planning and the consequences to your family of not planning. Once you understand exactly how planning is designed to work and what it protects against, you’ll realize there is no acceptable excuse for not having a plan.

Indeed, the first step in creating a proper plan is to thoroughly understand the potential consequences of going without one. In the event of your death or incapacity, not having a plan could be incredibly traumatic and costly for your family, who will be forced to deal with the mess you’ll have created by neglecting to plan.

While each situation and family are unique, in this multi-part series I’m going to discuss some of the things most likely to happen to your loved ones if you fail to create a plan. This is the first:

Your family will have to go to court
If you don’t have a plan, or if you only have a will (yes, even with a will), you’re forcing your family to go through probate upon your death. Probate is the legal process for settling your estate, and even if you have a will, it’s notoriously slow, costly, and public. But with no plan at all, probate can be a true nightmare for your loved ones.

Depending on the complexity of your estate, probate can take years, or even decades, to complete. And like most court proceedings, probate can be expensive. In fact, once all of your debts, taxes, and court fees have been paid, there might be little left for your loved ones to inherit. And for whatever is left, your family will have to pay hefty attorney’s fees and court costs in order to claim them.

Yet, the most burdensome part of probate is the frustration and anxiety it can cause your loved ones. In addition to grieving your death, planning your funeral, and contacting everyone you’re close with, your family will be stuck dealing with a crowded court system that can be challenging to navigate even in the best of circumstances. Plus, the entire affair is open to the public, which can make things all the more arduous for those you leave behind, especially if the wrong people take an interest in your family’s affairs.

That said, the expense and drama of the court system can be almost totally avoided with proper planning. Using a trust, for example, we can ensure that your assets pass directly to your family upon your death, without the need for any court intervention. As long as you have planned properly, just about everything can happen in the privacy of our office and on your family’s time.

No more excuses
Given the potentially dire consequences probate can cause for your family, you can’t afford to put off creating your estate plan any longer. Next week we’ll look at how the lack of an estate plan will cost you control of who inherits your assets as well as when and how the inheritance is received.  

 

Serving as a Trustee - What to Know

Being asked by a loved one to serve as trustee for their trust upon their death can be quite an honor, but it’s also a major responsibility—and the role is definitely not for everyone. Indeed, serving as a trustee entails a broad array of duties, and you are both ethically and legally required to properly execute those duties or face potential liability.

In the end, your responsibility as a trustee will vary greatly depending on the size of the estate, the type of assets covered by the trust, the type of trust, how many beneficiaries there are, and the document’s terms. In light of this, you should carefully review the specifics of the trust you would be managing before making your decision to serve.

And remember, you don’t have to take the job.

Yet, depending on who nominated you, declining to serve may not be an easy or practical option. On the other hand, you might actually enjoy the opportunity to serve, so long as you understand what’s expected of you.

To that end, this article offers a brief overview of what serving as a trustee typically entails. If you are asked to serve as trustee, feel free to contact us to support you in evaluating whether you can effectively carry out all the duties or if you should politely decline.

A trustee’s primary responsibilities
Although every trust is different, serving as trustee comes with a few core requirements. These duties primarily involve accounting for, managing, and distributing the trust’s assets to its named beneficiaries as a fiduciary.

As a fiduciary, you have the power to act on behalf of the trust’s creator and beneficiaries, always putting their interests above your own. Indeed, you have a legal obligation to act in a trustworthy and honest manner, while providing the highest standard of care in executing your duties.

This means that you are legally required to properly manage the trust and its assets in the best interest of all the named beneficiaries. And if you fail to abide by your duties as a fiduciary, you can face legal liability. For this reason, you should consult with us for a more in-depth explanation of the duties and responsibilities a specific trust will require of you before agreeing to serve.

Regardless of the type of trust or the assets it holds, some of your key responsibilities as trustee include:

  • Identifying and protecting the trust assets
  • Determining what the trust’s terms require in terms of management and distribution of the assets
  • Hiring and overseeing an accounting firm to file income and estate taxes for the trust
  • Communicating regularly with beneficiaries and meeting all required deadlines
  • Being scrupulously honest, highly organized, and keeping detailed records of all transactions
  • Closing the trust when the trust terms specify

No experience necessary
It’s important to point out that being a trustee does NOT require you to be an expert in law, finance, taxes, or any other field related to trust administration. In fact, trustees are not only allowed to seek outside support from professionals in these areas, they’re highly encouraged to do so, and the trust estate will pay for you to hire these professionals.

So even though serving as a trustee may seem like a daunting proposition, you won’t have to handle the job alone. And you are also often able to be paid to serve as trustee of a trust.

Five Wishes Archives - Minority Nurse

Last week I discussed the vital importance of having updated advance directives in place considering COVID-19. Here, we’ll look at several provisions you might want to consider adding to your directives to address potential contingencies related to the pandemic.

  1. Permission to undergo experimental medical treatments: Since there is currently no proven vaccine or other effective treatment for COVID-19, you may consider adding provisions to your directives authorizing your agent to consent to—or withhold consent for—any experimental treatments or procedures that may be developed. Seeing that it could be years before an effective vaccine or cure will be available on a widespread basis, such a provision could be particularly important if you contract the virus while such treatments are still in the trial phase.
  2. Express your wishes about intubation and ventilators: In severe COVID-19 cases, patients often require intubation, which involves putting you into a medically induced coma and inserting a tube into your windpipe, allowing oxygen to be pumped directly to your lungs using a ventilator. However, some directives specifically prohibit intubation, since such measures are often a last resort and used primarily for life-support purposes. Indeed, some people’s greatest fear is being hooked up to a machine just to keep them alive.

    That said, some coronavirus patients have successfully recovered after being on a ventilator, so you might not want a blanket prohibition of intubation in all cases. But you’ll also need to weigh the fact that even if you survive after being placed on a ventilator, you’re likely to require months, or even years, of rehabilitation and may never regain the full quality of life you previously enjoyed. And if you’re elderly or have an underlying condition, the prognosis for full recovery is especially slim.

    For these reasons, you should carefully review your directives’ provisions regarding intubation and ventilators to be certain your documents accurately reflect your wishes. There is no right or wrong answer here, so it’s critical your loved ones and medical professionals know what you would want.

    To help you make more informed decisions, read What You Should Know Before You Need a Ventilator, a doctor’s perspective about intubation’s potential health consequences for COVID-19 patients. Additionally, you can find a more comprehensive discussion of coronavirus treatment decisions at the non-profit Compassion & Choices resource page, COVID-19: Understanding Your Options.

  3. Consider a liability shield for doctors and hospitals: Due to fear of getting sued, some doctors and medical facilities are hesitant to honor living wills during the pandemic. To deal with this, you might want to consider including language in your directives that “indemnifies” medical providers, facilities, and your agent from any liability incurred because of following your directions. People and institutions will be much more likely to fully honor your wishes if they understand they likely won’t get hit with a lawsuit for doing so.

Pandemic planning

The tragic reality of the pandemic is that far too many Americans are at risk of becoming seriously ill and even dying from COVID-19. In light of this dire situation, it’s vital that you and your loved ones take all possible precautions to not only mitigate your chances of catching the virus, but also having the best possible chance of surviving if you should become infected.

In the event you become hospitalized with COVID-19, having updated advance directives in place can make the medical decision-making process for both your healthcare providers and family much safer and easier, while helping ensure your treatment is carried out based on your personal wishes and values. Given the overloaded state of our healthcare system right now, facilitating your medical care in this way could ultimately save your life.

Whether you have yet to create these documents or need yours updated, don’t wait. These documents only work if you have them in place before you become incapacitated.

Dedicated to empowering your family, building your wealth and defining your legacy,

 

45 Secrets Your Surgeon Won't Tell You | The Healthy

 

As the COVID-19 pandemic continues to ravage the country, doctors across the nation are joining lawyers in urging Americans to create the proper estate planning documents, so medical providers can better coordinate their care should they become hospitalized with the virus.

The most critical planning tools for this purpose are medical power of attorney and a living will, advance healthcare directives that work together to help describe your wishes for medical treatment and end-of-life care in the event you’re unable to express your desires. In light of COVID-19, even those who have already created these documents should revisit them to ensure they are up-to-date.

 

While all adults over age 18 should put these documents in place as soon as possible, if you are over age 60 or have a chronic underlying health condition, the need is particularly urgent.

 

Advance directives
Medical power of attorney is an advance directive that allows you to name a person, known as your “agent,” to make healthcare decisions for you if you’re incapacitated and unable to make those decisions yourself. For example, if you are hospitalized with COVID-19 and need to be placed in a medically induced coma, this person would have the legal authority to advise doctors about your subsequent medical care.

 

If you become incapacitated without medical power of attorney, physicians may be forced to ask the court to appoint a legal guardian to be your decision maker. The person given this responsibility could be someone you’d never want having power over such life or death decisions—and that’s why having medical powers of attorney is so important.

 

While medical powers of attorney names who can make health-care decisions in the event of your incapacity, a living will explains how your care should be handled, particularly at the end of life. For example, if you should become seriously ill and unable to manage your own treatment, a living will can guide your agent to make these medical decisions on your behalf.

These decisions could include if and when you want life support removed, whether you would want hydration and nutrition, and even what kind of food you want and who can visit you. To ensure your medical treatment is handled in exactly the way you want and prevent your family from undergoing needless stress and conflict during an already trying time, it’s vital that you document such wishes in a living will.

 

Keep your directives updated
Even if you’ve already created advanced directives, now is the perfect time to review the documents to ensure they still match your wishes and circumstances. For instance, is the agent named in your medical power of attorney still the individual you’d want making these decisions? Do you have alternate agents named in case your primary choice is unable to serve? Has your health changed in ways that might affect your living will’s instructions? Are your values and wishes regarding end-of-life still the same?

Coronavirus considerations
What’s more, whether you are creating new documents or updating your old ones, you should keep COVID-19 in mind. The highly contagious and life-threatening nature of the coronavirus is something medical providers have never dealt with before, and it has strained our nation’s healthcare system to the breaking point.

You don’t want anything slowing down your treatment options if you contract COVID-19. Because COVID-19 is so contagious, family members of those who’ve contracted the virus are often not allowed to accompany them to the hospital. This means your agent likely won’t be there in person to make your treatment decisions. Ensure your agent has access to a copy of your directives and be sure to take a copy with you, along with contact info for your agent, if you must go to the hospital for treatment.

 

Don’t do it yourself

While you’ll find a wide selection of generic, advance-directive documents online, you shouldn’t trust these do-it-yourself forms to adequately address such critical decisions. This is especially true during the ongoing pandemic, when doctors are constantly tasked with making highly difficult and uncertain decisions for patients suffering from this deadly new virus.

 

When it comes to your medical treatment and end-of-life care, you have unique needs and wishes that just can’t be anticipated by fill-in-the-blank documents. To ensure your directives are specifically tailored to suit your unique situation, you must work with experienced planning professionals to create—or at the very least, review—your medical power of attorney and living will.

 

 

With the risks still posed by COVID-19, we all need to face the possibility that we could get sick, even if we take great care of ourselves through good nutrition, sleep, and exercise. And even if you don’t need to be hospitalized, if you do experience symptoms and test positive, you might have to stay quarantined for enough time that you’d lose income. These risks highlight the need for everyone, regardless of their age or current state of health, to have some form of disability insurance coverage.

You might think you don’t need disability insurance, especially if you’re young and in good health. Hopefully, you’re right. Unfortunately, though, becoming disabled can happen to anyone at any time. This isn’t specific to coronavirus either; it has always been true.

The sad fact is that, according to the US government’s statistics, one in four 20-year-olds become disabled before reaching retirement age. That makes it even more important that you consider how to protect yourself with insurance.

And this is especially important: you must get the actual insurance before something happens. If you’re already sick, you can’t buy disability insurance to make up for lost income.

So now is the time to prepare. Here’s some information to get you started.

What Qualifies You for Benefits (And What Doesn’t)
Let’s get clear on one thing that applies to the coronavirus pandemic: only medical quarantine qualifies you for disability benefits. That means only medical self-quarantine related to COVID-19, which is verified by a doctor, will qualify you. Socially quarantining to decrease your chance of contracting the virus in the first place won’t qualify you for your disability insurance benefits. Disability insurance also won’t cover you if you lose income or health insurance because your employer has closed or laid you off.

Also, disability insurance is not the same as health insurance. Though your failed health is the reason you’d get access to your disability insurance in the first place, disability insurance will not cover your medical bills. Disability benefits are basically to help you pay housing and food costs. But in a time when you’re dealing with disability, it’s good to have those bills covered while you are focused on healing and self-care.

There are two different types of disability insurance and knowing the difference will help you save a lot of time.

Short-Term Disability Insurance
Short-term disability insurance normally lasts around 3–6 months, sometimes up to a year or two. It covers about 60–70% of whatever your salary is. The premiums you pay are often higher than long term coverage, ranging from 1–3% of your annual income. So for someone making $50k a year, it would range between $60 to $125 every month. The percentage depends on what kind of health risks the insurance company determines you have. If you smoke, for instance, the premium will probably be higher, just like with many health insurance policies. If you have a risky job, such as dealing with heavy machinery, premiums will likely be higher as well. A major upside, though, is that payouts usually happen within two weeks, which can be a huge relief in an emergency.

Financial expert Dave Ramsey points out that, because of the higher premiums and shorter span of coverage time, you might want to consider building up a solid emergency fund with 3–6 months of expenses instead. You can consider that personal short-term disability coverage that you don’t have to pay premiums on. But if you’re living paycheck-to-paycheck and can’t foresee saving that much (like 80% of American workers, according to CNBC), and your employer doesn’t offer short-term disability insurance, it is something you may want to consider buying yourself.

Long-Term Disability Insurance
This is the type of insurance that is most important to get, no matter what. This is the type that will last through a long recovery or treatment period. Look for a “non-cancellable insurance policy”, which will keep the insurance company from being able to cancel your policy if you have any health changes.

Long-term disability insurance may pay you benefits for a few years or until your disability ends. Most policies cover 40–60% of your salary, but ones that pay up to 70% do exist, and you should try to find one. These policies also cost 1–3% of your yearly income, but they tend to be on the lower side than short-term. A major difference between the two forms of insurance is that it can take up to 6 months to see a payout. This means that it’s not the best option for covering costs if you have to go into medical quarantine for COVID-19.

We recommend that, even if you decide to pass on short-term disability in favor of emergency fund savings (or if your employee already covers it), you should definitely consider a long-term policy to protect your earnings. Remember, though, it will only pay a percentage of the income you’d be taking in otherwise. Make sure you also have health insurance and as much savings as you can get to protect yourself as well.

Dedicated to empowering your family, building your wealth and defining your legacy,

Right now, huge numbers of people are coming face to face with their own mortality, and realizing they need to plan for the worst. This goes not just for those in the “senior” category, but for all of us, no matter our age. We are facing the reality of our mortality, and many of us are doing it courageously by taking this as an opportunity to learn what we need to do for the people we love.

Recently I heard a tragic story from a colleague whose client lost her fiancé to COVID-19. Because she wasn’t listed on her fiancé’s health directive and HIPAA waiver, she could not get anyone to update her on his condition once he entered the hospital.

Naturally, she didn’t give up trying, and eventually someone told her that he wasn’t in the ICU anymore. She was enormously relieved, but when she hadn’t heard anything else by the next day, she called again for news. Finally, after being transferred several times, she learned that the reason her fiancé wasn’t in the ICU was because he was in the morgue. He’d passed away the day before, and no one had told her. Heartbreaking.

Nobody expects something like this to happen, especially to people who are healthy and making plans for their own futures. But sometimes the worst does happen, and if it does, you want the people you love to be able to grieve properly, without leaving them with a mess of confusion on top of it all.

Now, think about your own situation. What will happen to your loved ones, and the assets you’ll leave behind, if you become sick or die?

Without a doubt, you’d want to ensure certain people in your life are informed if you have to go to the hospital and kept up to date on your condition while you are there. You’d also probably want to avoid them having to go through a drawn-out court process to handle your estate after your death or save them from the fate of not being able to access your assets if you are hospitalized. This article is all about you having the tools you need to make sure everything is in place to do the right thing for the people you love, just in case something happens to you.

Covering the Bases
First, you need to have a worst-case scenario conversation with your family. A lot of people try to avoid conversations about death, but the fact is, we will all die. It’s better to face that with those we love so that when the time comes, we will be as ready as we can be, and so will they.

Create an Asset Inventory
This is something you can get started on right now, by yourself, without the help of a lawyer. It is a great resource to leave for your loved ones so they know where to find everything that is important to you, and will be important to them, if something happens to you.

First, get out your calendar and schedule an appointment with yourself. Set aside an hour or so to put all your asset information in one place (we use a spreadsheet when we do this for clients): real estate, bank accounts, retirement accounts, life insurance, stocks, bonds, business interests, etc.

Update Your Health Care Directive
This is extremely important if you want your loved ones to avoid the tragic situation my colleague’s client found herself in. Do NOT delay reviewing and updating these documents.

Your Health Care Directive should have three parts:

  • A Living Will/ Medical Directive, which states how you want decisions to be made for you.
  • A Medical Power of Attorney, which states who should make these decisions if you can’t make them yourself.
  • A HIPAA Release that allows medical professionals to disclose information to your Medical Power of Attorney/Agent.

Name Legal Guardians for Your Kids
A very important thing for all parents of minor children to do is name legal guardians for your children. Think about what would happen to them right now if something were to happen to you, for both the long term and the immediate future. This is the single most important thing parents of minor children should do because it would have the greatest impact on – or leave the biggest hole for – our minor children if something happens to us.

Going Beyond Just the Basics
The goal in setting up an estate plan is, ultimately, to keep your loved ones out of court and out of conflict. To do that, you must make the right decisions during the planning process, retitle assets so they are protected by your plan, and ensure your plan stays up to date for the rest of your life.

Estate planning is all about merging your family dynamics, assets (both material and non-material), and the law into a cohesive plan which accomplishes all that you really want to do for the people you love.

If you are ready to face your mortality courageously and want to ensure your family is protected and provided for no matter what, don’t wait. Get the help of a professional (someone who’s providing virtual planning sessions) and get started now.

Dedicated to empowering your family, building your wealth and defining your legacy,

As you already know, the COVID-19 pandemic means there’s no more “business as usual”. So don’t just hope you can survive until things return to normal. Strategize, now, on how you can take what control is in your sphere of influence. Once you have attended to your (and your parents’) immediate needs, it will be time to consider more long-term plans.

In this time of stress and chaos, your parents may be resistant to talking about estate planning. It may feel too pessimistic to plan for the worst amid a scary situation. However, that’s exactly why it’s important right now to do so. Plus, since hopefully you are staying inside, you may have the time to dedicate to getting these tasks taken care of.

Here are actions you can, and should, take to ensure you and your family are fully protected legally.

Update Your Health Care Documents

Above all, you first need to ensure that both you and your parents have your health care documents in order. This will be an invaluable reference point for those who are assisting you, whether they be friends, family, or medical professionals.

There are three important and distinct documents you should have in place: Your advanced directive, HIPAA waiver, and living will. They are separate documents but all work together. Think of them like the legs of a stool. If just one is missing or defective, the stool will fall – with you in it!

Your advanced directive identifies and gives legal authority to whom you would like to make your medical decisions if you are unable to do so yourself. Many people think spouses automatically have this legal authority and therefore don’t need this type of document for each other. That is a mistaken belief which can cost married couples substantial time, money, and anguish when a medical emergency arises.

A HIPAA waiver is important because even though your advanced directive gives authority to someone of your choosing to make medical decisions for you, privacy laws will prevent your doctor from sharing your medical information with that person. I see a lot of advanced directives which include a HIPAA section, but this is not legally sound and often fails. For starters, the privacy laws mandate the HIPAA waiver be written in a certain font style and size. Trust me on this. You want your HIPAA waiver to be a standalone document.

Your living will is different from your last will and testament. While a last will deals with the decisions to be made after death, a living will pertains to decisions which are to be made while you are still alive. This is where you will provide guidance on when you would want to be placed on life support, removed from life support, whether you want to donate your organs, etc.

Even if you have already created your medical directives, I urge you to take out any existing documents now and review them. Have your circumstances changed? Do you have additions to make? Encourage your parents to do the same thing, and to communicate with you about what their documents say. If you are unsure whether your health care documents are in ship-shape, call us, and we’ll be happy to review them for you.

Ensure Your Estate Plan is Up to Date and In Order

Your healthcare documents are an important start, but you should also review (or create) powers of attorney, a last will, and perhaps even a living trust. Remember that it’s never an inappropriate time to plan. Getting this in order will provide you and your loved ones peace of mind. And we’re here to support you, virtually now, as well. We can take care of you, and your family, fully online. Call us, we’re here.

 Dedicated to empowering your family, building your wealth and defining your legacy,

I’m dealing with working from home, managing my business and my team remotely, operating in shifts with my wife to take care of my children during the day, homeschool them, all while keeping a nervous eye on our stockpile of toilet paper. But perhaps my biggest challenge is feeling like my parents and in-laws are taking COVID-19 as seriously as I wish they would.

As of March 25th, the number of confirmed cases of COVID-19 across the United States was 54,453 cases across the United States with 737 confirmed deaths from the virus. And these numbers are still rising exponentially. 

When we first became aware of the novel coronavirus, there were several TV pundits and other authority figures saying that the virus was just another version of the flu. But in other parts of the world, we’ve seen COVID-19 overwhelm healthcare systems in a way the flu virus just hasn’t.

It seems, though, that many people of the older generation may still not be taking this seriously. And hey, they are the most battle tested of all of us. They’ve seen it all and survived it all and aren’t generally the types to give in to panic and stress. 

That said, they are also among the most vulnerable to the effects of COVID-19. And even with the stay at home order in place, I still feel like my parents are taking too many unnecessary risks. Here’s how I’m trying to express my concerns to them:

  1. Listening to them and determining the worries they have.
    I want to know what they have heard, what they are frustrated about, and what they are skeptical about. Everyone is frustrated with lines at the grocery store, toilet paper hoarding, and the hysteria of the crowds around them. I’m sure my parents do not want to feel like they are one of “those people.” I know I don’t. So I’m just trying to assure them that taking some precautions, especially staying home, is completely reasonable and can be done in a non-panicked way. I’m also trying to support them to make alternative arrangements during this time so they don’t have to go out.
  2. Emphasizing the risk in practical terms.
    I’m sharing articles and news with them that state the facts, soberly, like this one. My parents are bright and already have a good understanding about how viruses spread in general and they already know the basics of how important it is for them to wash their hands. But I want to ensure that is at the top of mind for them every day right now.
  3. Showing them I’m taking it seriously.
    I’m not getting together with my parents unless absolutely necessary, and when I do, I’m wearing a mask and keeping my distance as much as possible. I also shared the video created by Max Brooks, son of legendary comedian Mel Brooks, with them. Max created a PSA to convince younger people to be cognizant of how they might spread the virus to people who are the most vulnerable to it. It presents the situation in a succinct, somewhat lighthearted way. 

If you’re experiencing something similar with your loved ones, I’d love to hear your thoughts. Together, we can get through this. Let’s make sure our parents come through this with us.

Be well and stay safe.

Dedicated to empowering your family, building your wealth and defining your legacy,

Do your parents have an estate plan? Is it up to date? No matter how rich or poor you or your parents are, especially in the wake of the COVID-19 pandemic, you need to be asking these and several other questions. When your parents become incapacitated or die, their affairs will become your responsibility, and it will be impossible to ask them to clarify anything. So, if you do not know whether they have estate planning in place to help you best support them, read on.  

The Best-Case Scenario

In a best-case scenario, your parents have an updated estate plan, and they’ve walked you through it. They have provided an inventory of their assets that’s easy for you to find listing out everything they own and how it’s titled. Ideally, the plan also includes directions on how to handle their non-monetary assets, and a video, audio recording or written stories that pass on their values, insights and experience. On top of all that, it’s best if they’ve introduced you to the lawyer who set it all up, so you know who to turn to when the time comes.

Less-Than-Ideal Scenarios

If that’s not the case, you could have some holes to fill. If they’ve not done any planning at all, now is the time to encourage them to get it done and support them in any way you can. If they already have a completed plan, it’s likely that it has been sitting on their shelf or in a drawer for years, not updated, with no inventory of their assets and no way to capture and pass on their intangible assets. Even worse, their lawyer could have been using outdated systems that are no longer recognized, which can lead to trouble down the road.

It’s also possible that if they’ve never updated their estate plan, it no longer tracks with their current assets, and may even require complex actions that are no longer necessary upon their death. Worst of all, you may have no idea what your parents own or how to find their assets, and at their incapacity or death you’ll be left with a mess, even though your parents had good intentions and thought their planning was handled.

The Worst-Case Scenario

In a worst-case scenario (which we see more frequently than we’d like), your parents may have worked with someone who exerted undue influence over their decisions. This person may have led them to write something into their plan that they either didn’t really want to or wouldn’t otherwise have chosen if they understood all their options.  

Either way, it’s critical for you to know who your parents have worked with to create their estate plan, and how and why they made the choices they did. If you aren’t in the know, now is the time to find out. 

If your parents are already discussing these matters but have not yet included you, you can ask them to schedule a family meeting with their existing attorney. On your parents’ request, that attorney should look forward to walking you through your parents’ planning, the choices they made, and how you will be impacted in the event of their incapacity or death.

You want to develop a relationship with their estate planning attorney now. This advisor can be one of the most important supporters of you and your parents during your time of need. It’s a relationship you will want to establish before you need it, so you won’t be scrambling during a time of crisis.

Dedicated to empowering your family, building your wealth and defining your legacy,