For my clients, May is when we focus on three key financial planning topics: debt, credit reports, and estate planning. This post will focus on estate planning. It really is the gorilla in the room for many people. It’s also the topic people seem to like the least, and it really does take time to make personal decisions.
If you haven't started your estate plan, or if your estate plan is more than five years old, May is the time to start or review your plan! These days there are many great approaches to estate planning. You can go DIY if you have a very simple situation, or hire an estate planning attorney for a more complex estate plan. Many think of estate planning as talking about death, but you are really talking about quality of life for yourself, your loved ones, and those providing your care.
Here are the basic documents you should consider:
Will - A will is used to pass on property at death. However, it does not avoid probate! This is a common mistake that many people make. Your will basically expresses your wishes for how you would like your property distributed after your death.
Living Will or Letter of Instruction - Slightly different than a will. Outlines more personal choices. These are some of the more personal issues such as what type of service you would like.
Power of Attorney - You should have one for financial matters and one for health care (health care proxy). Each of these appoints the person you want to speak for you should you be incapacitated. Be sure that this person knows you well, and that you have discussed your desires in detail with the person you name.
Trust - Many folks need a living trust (revocable living trust). This trust can be changed or amended during your lifetime, hence, living/revocable. Others may need an irrevocable trust (which can't be changed). Each person's situation is unique so you really want to discuss the pros and cons of each type of trust. You should note, there are other types of trusts as well. These are simply the most common.
For those of you who are DIY-types, consider using a reputable online service. A few considerations would be Trust & Will, Rocket Lawyer, or Legal Zoom. All offer solutions that may fit your need and are quite affordable. The benefit of an online service, is that future updates can be easily made.
For those seeking an in-person estate planning attorney, be prepared to pay much more. If you have a family business, or other unusual circumstances, an attorney may be the way to go despite the higher fee. It can be well worth it. Be prepared to pay much more than for the online service.
As an independent CERTIFIED FINANCIAL PLANNER™, I can help you with your personal financial plan. Contact me and let’s get started on a savings, investing, estate, or retirement plan. #talktometuesday #education #Hireaplanner #stressfree #savings #retirement #CFPPro #whatsMYnumber #estateplan #ageing #help #senior