Benefits of Estate Planning Beyond Asset Distribution

Many people think estate planning is simply about deciding how to distribute their assets after they die. In reality, a well-prepared estate plan can do much more.

Estate planning can help provide for your family after you are gone. It can also protect you during your lifetime if you become unable to make financial or medical decisions for yourself.

Additional Benefits of Estate Planning

Life can bring unexpected changes, both good and bad. Estate planning can help you prepare for some of the more difficult situations you may face.

Proper estate planning includes planning for your care if you become incapacitated. Depending on your circumstances and state law, several legal documents can help you prepare.

Durable Power of Attorney

A durable power of attorney can help address your financial and property needs during incapacity. This legal document allows you to appoint someone to manage your finances and property on your behalf.

A durable power of attorney may take effect as soon as you sign the document. This allows someone to act on your behalf even while you still have capacity. Alternatively, a power of attorney may take effect only if you become incapacitated, depending on state law and the terms of the document.

Choosing the right person to act on your behalf is an important part of creating a power of attorney. We can help you understand your options and determine what may fit your situation.

Medical Power of Attorney and Healthcare Directives

A medical power of attorney can also protect you if you become unable to make medical decisions for yourself. In some states, this document may also be called a healthcare proxy or healthcare directive.

It allows you to name a trusted person to make medical decisions on your behalf when you cannot make them yourself. It can also give you an opportunity to communicate your wishes about your medical care.

Putting these decisions in writing can make your wishes clearer to your loved ones and healthcare providers.

An advance healthcare directive or living will can also provide peace of mind. This document can provide instructions about the type of end-of-life medical care you want. The terminology and requirements vary by state. A living will is often used alongside a healthcare power of attorney.

Revocable Living Trusts

A revocable living trust may also play an important role in incapacity planning.

When you are healthy and have capacity, you are typically the trustee of a revocable living trust. This allows you to manage the trust assets and use them for your benefit.

The trust can also name a successor trustee. That person may step in to manage the trust assets if you become unable to act because of incapacity or disability.

A successor trustee’s responsibilities are generally governed by the terms of the trust and applicable law. Properly structuring the trust can help provide continuity in managing your assets if you can no longer manage them yourself.

How Estate Planning Can Help During Incapacity

Estate planning is not only about what happens after death. It can also help you prepare for a time when you are alive but unable to make financial or medical decisions for yourself.

Documents such as powers of attorney, healthcare directives, living wills, and revocable living trusts can address different aspects of incapacity planning. The right combination depends on your circumstances, the assets you own, and the laws of your state.

Without appropriate documents in place, your loved ones may need to ask a court to appoint someone to make financial or medical decisions for you. Court proceedings can take time and may involve additional costs and public filings, depending on the circumstances and applicable state law.

Plan Ahead for Peace of Mind

Having a properly drafted estate plan can help protect you during your lifetime. It can also document your wishes for after your death.

Planning ahead gives you the opportunity to choose people you trust to handle your financial and medical affairs. It also allows you to communicate your wishes before a crisis occurs.

Without these documents, your loved ones may have to go to court to seek authority to make financial or medical decisions for you. This type of court involvement can be stressful and costly during an already difficult time.

Get Help With Your Estate Plan

If you have questions about powers of attorney, healthcare directives, trusts, or other estate planning documents, contact us to learn about your options under applicable law.

A properly prepared estate plan can help protect your interests during your lifetime while also providing for your loved ones after you are gone.

Learn more about estate planning and how to get started.