The phrase “Estate Planning” is the worst choice of words ever…
Maybe a better term would be “Personal Protection Planning” or just “Planning Ahead.”
The word “estate” conjures up images of big houses and a lot of money. Don’t let the word estate fool you. It doesn’t mean a big house and a pile of money to burn.
Estate in law just means “the stuff you have.” We all have an estate. Even if it just your clothes, that is your estate.
But, you have much more important things to protect than just your stuff. You have a set of fundamental rights that can get ripped away by a judge. Naturally, you don’t want that, right.
You have the right to:
- Make your own financial decisions
- Make your own legal decisions
- Choose your healthcare options, including refusing treatment all together
- Have a family
- Give your stuff away to who you want, when you want, how you want
- Sell your stuff
- Buy stuff
- and much, much more…
But, if you don’t plan ahead to maintain and manage your rights, then a judge can rip your rights away and give somebody else (a “guardian”) the right to make those decisions for you.
What can happen if you don’t plan ahead?
- You could leave your family in a financial bind. If you something happens, and you haven’t planned ahead, your family could be strapped for cash until everything is settled. Especially if you haven’t shared with them all of your insurance policies, bank accounts, and retirement plans. When my father passed away, he hadn’t shared where anything was. We had to go from place to place finding all of his stuff. If you have just a Last Will and Testament, your family may have to wait a year or more for the courts to finish the process and release the money.
- You could put yourself in a bind. If you are unable to make financial, legal, or medical decisions (think car accident, stroke, or heart attack) you spouse can’t just step in and take over without a plan in place. One lady found this out the hard way when her husband had a stroke. She went to his financial planner to get money for his care and was informed that without a guardianship or power of attorney, she couldn’t get the money. Not to mention that your family would have to go to court for a guardianship, causing them more stress in an already stressful time.
- You could find yourself on life support for years against your true wishes. “Google” Terri Schiavo. She was on life support for 15 years because she hadn’t planned ahead. Her husband and mother fought through the courts for 15 years.
- Your money could go to young children. What would you have done with a lump sum of cash at 20 years old? What would your children do with a lump sum?
How do you protect yourself, your family, and your “estate?”
- Find a reliable attorney that does this type of planning all the time. They should provide excellent estate planning at a reasonable price.
- Get a minimal plan in place to protect your right to make financial, legal, and healthcare decisions
- Durable power of attorney
- Healthcare power of attorney
- HIPAA waiver/Health Records Release
- Living Will/Advance Directive
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