Author: Dustin Wetton
Chuck Palahniuk once advised that “we all die. The goal isn't to live forever; the goal is to create something that will.” Many of us have the difficult problem of making the mistake that we are immortal, or that it will never happen, yet, despite our best efforts, we must remember Chuck’s advice, “we all die.” Thus, to leave behind anything the way that we want to, we need to have an estate plan. Many people are also confused to when they need an estate plan. The are many common mistakes that I hear of : 1)You don’t need an estate plan unless you are getting old, 2) you don’t need an estate plan unless you have something to give away, and 3) my family will know what to do with my things.
Each of this three sayings are incorrect, and for various reasons. Mostly, what is incorrect with them is that an estate plan is not for the rich, the old, and for those with good family relations. An estate plan is a way to govern your life when you are not capable of doing it yourself. Its called planning for the future, and is as important, if not more important, than saving for a retirement, creating a savings account, or planning for your child’s future. A customized estate plan will ensure that you are best protected, that your family and the nest that you created are managed and guarded as best as possible, and that you don’t leave a burden on those left behind. Estate plans are also not just for your death, but also are used for many other purposes. For instance, a power of attorney can be used to buy property out of the state, and a healthcare directive can help guide medical decisions on your behalf when you are not conscious to do so yourself.
In the end, an estate plan can do many things, but when should you really have one? I guess the best answer would be that everyone should have some sort of estate plan, customized to your current situation, but people normally don’t like that answer. So I came up with three scenarios where you really should have an estate plan. (1) You are the parent of minor children. Whether or not you are married, regardless if the other parent is alive, each parent should have an estate plan in place. Their plan should consist of at the minimum a Nomination of Guardianship, a pour-over will, and a Guardianship/Minor Trust. The idea here is to protect your minor children, both with a nominated guardian and financially, in case you become incapacitated or unexpectedly die. Next, (2) you have property that you care about. If you own any kind of property, whether it be a house or jewelry, and care about how it will be taken care of once you are not able to control it, you should have an estate plan with at least a will. If you are really particular about controlling its positioning, then a trust might be a better solution for you. Lastly, (3) you care about your health care treatment. This is important because if you become unconscious, or are in a life-threatening medical emergency, you will need someone to make medical decisions for you. In this situation, you would want a healthcare directive, so that you can inform your family and the doctors of your health care treatment desires and other related request. You also may want to have a durable power of attorney to make sure that any necessary legal documents can be signed on your behalf.
Thus, while you may feel immortal, or sometimes forget that no matter how hard we try, we will all perish someday, it is best to remember that while death may be scary, its fate is imminent, and therefore a plan is always necessary. A good idea may be to use your upcoming tax return to plan for you and your family best. Then you can truly enjoy the fulfillment in the saying “death and taxes.”
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