A recent survey of Caring.com reveals that 58% of adults in the U.S. do not have a will or living trust. This percentage shows how adults
neglect the importance of estate planning.
If you are part of this population,
read on.
I understand that it is easy to put off end-of-life
planning not only for the young, but also for most people who refuse to think
about their mortality. However, this kind of thinking prevents you from making
decisions that will save your loved ones from additional stress during a time
of great grief.
Have you considered setting up a will but never really
acted on it?
Caring.com's survey conducted by Princeton Survey Research Associates International found out that 47% out of 1,003 adults do not have estate planning documents because they “haven’t
gotten around to it.”
Procrastination is a common hindrance to any kind of
planning, but once you know the burden and stress that a lack of will or living
trust will give to your loved ones, you might reconsider.
I have previously written a blog post "Steps To Take When
A Loved One Dies",
a long list of to-do’s that will definitely exhaust bereaved family members. You
wouldn’t want your loved ones to go through this arduous process while on a
grieving period. If you need a bit of a push to start your estate planning,
think of your loved ones. Do it for them.
Are you hesitant because of the value of your assets?
Jody Giles, author of “Missing Pieces Plan: Providing You and Your Loved Ones Peace of Mind” says, “Even if
you don’t have the wealth of Steve Jobs or Prince, what you do have means
something to somebody. Regardless of the amount of ‘wealth’ you are passing on,
let it be handed over based on your wishes, not your state’s laws.”
Still thinking about it? Here are two more reasons why you should seriously consider starting your estate planning NOW:
If you are a parent, you have to ensure that your child will be given the best care
even after you are gone by nominating a guardian for your children. Giles stresses that a will has a critical role for the minor children and all parents need a will, “If for no other reason than the sole purpose of
naming guardians.” This isn’t usually a topic that you or your partner
would comfortably discuss, but it is imperative. You would want to leave your
children under the care of people you trust, and not someone appointed by a
judge.
You need to have a health care power of attorney. Why? Because when there’s medical emergency and you are not able to decide for yourself, you want someone that you trust make the decisions for you. When a child reaches 18 years of age, parents are no longer legally empowered to make medical decisions for their children. In medical emergencies, you may even find it difficult to get updates on your child's condition without an advance health care directive and HIPAA Release.
Ready to take the first step but still have questions? Here are some answers to the questions commonly asked by clients and friends:
Isn’t estate planning
too complicated and costly?
It depends. The extent and complexity of your financial situation and your personal goals and wishes directly affect the process of estate planning. Simple estate planning usually doesn't cost much, but expect higher expenses when there’s a need to sort out some issues. According to Ashley Case, an Arizona-based tax and estate-planning attorney, “For individuals with modest wealth and straightforward wishes, a simple estate plan can be prepared quickly and inexpensively. Some factors that tend to complicate an estate plan include multiple marriages, children from different relationships, certain business assets, a higher net-worth, and complex wishes regarding distributions.”
Should I get a
will or a living trust?
Mark Gilfix, an
elderlaw attorney
with Gilfix and La Poll Associates, LLP, suggests that you should choose
living trust over a will. He discussed in a Caring.com video, Estate Planning: What You Need, the
main factors to consider in choosing between a will and a living trust.
However, Giflix emphasized
that having a will is much better than nothing.
How will I start
with my estate planning?
Another
video of Mark Giflix briefly enumerates these steps to follow:
