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,