If you become incapacitated, you won’t be able to manage your own financial affairs. Many are under the mistaken impression that their spouse or adult children can automatically take over for them in case they become incapacitated. The truth is that in order for others to be able to manage your finances, they must open a guardianship proceeding, and petition a court to declare you legally incompetent. This process can be lengthy, costly and stressful. Even if the court appoints the person you would have chosen, they may have to come back to the court every year and show how they are spending and investing each and every penny. If you want your family to be able to immediately take over for you, you must designate a person or persons that you trust in proper legal documents so that they will have the authority to withdraw money from your accounts, pay bills, take distributions from your IRAs, sell stocks, and refinance your home. A will does not take effect until you die, so is of no help, and a power of attorney may be insufficient, as it provides authority but lacks guidance.
Planning to keep a family business viable, and in the family, after the founder of the business has retired, become disabled, or died, is a significant challenge. Less than half of family businesses survive to the second generation, and less than a third survives to the third generation. The absence of planning is often the cause of these failures. Succession planning, including buy-sell agreements, key man insurance, and shareholder agreements is essential to protect your business, and provide for your family, after you are gone.
Whether by phone, via Zoom or in person, determining your estate planning needs require a personal assessment. A discussion, to determine the best way to accomplish your estate planning goals.
Wills
Trusts
In many cases, a well thought out estate plan using a Living Trust can provide for your loved ones, protect them from creditors or mismanagement, and avoid the expense, time, and loss of privacy resulting from Probate Administration.
Power of Attorney
In addition to planning for the financial aspect of your affairs during incapacity, you should establish a plan for your medical care. The law allows you to appoint someone you trust – for example, a family member or close friend, to make decisions on your behalf about medical treatment options if you lose the ability to decide for yourself. You can do this by executing a health care power of attorney for where you designate the person to make such decisions. In addition to a heath care power of attorney, you should also have a living will which informs others of your preferred medical treatments such as the use of extraordinary measures should you become terminally ill and are being kept alive by mechanical devices.
It is critical for adults who are not married to affirmatively create legal documents to secure the rights and privileges that the law does not automatically provide. These documents include an appropriate health care power of attorney, a living will, and a durable power of attorney. And to maximize the opportunity for tax planning, creditor protection, and the management of inheritances, a will and often a revocable living trust are essential.