For many people, estate planning equals procrastination. They plan to get it done someday, which we know means never. However, getting past this delay is critical for having an estate plan. Otherwise, it’s just a wish list. A recent NerdWallet article, “How to Face Down Estate Planning Paralysis,” explains how to move forward to ensure your estate plan is completed. It’s like visiting the dentist or the accountant. Make an appointment and get it done.
Estate planning can feel overwhelming. Start by making a simple inventory of everything you own, using a spreadsheet or pad and pencil. It doesn’t have to be complicated; it just must get done. People often think they don’t have enough to need protection. However, anyone over 18 with a bank account needs a plan.
An estate plan is a legally enforceable set of documents that organizes assets, documents wishes for property distribution after death and protects loved ones. Estate planning needs vary widely, from a simple will for a young single person to a will and trust for young parents, and from documents that empower others to make financial and health decisions in case of incapacity for everyone.
People who don’t have children or family members may need a professional fiduciary to make decisions for them if they are incapacitated. Single or child-free people need an estate plan to clarify their wishes and protect them in case they are too ill to make decisions on their own.
Couples who are not married need an estate plan to protect their partners. In most states, without the legal benefits of marriage, the surviving partner in an unmarried couple has no protection or legal right to inherit. Even if someone has been making mortgage payments for decades, they will be unhoused if proper planning hasn’t been done. They should be on the property title and, ideally, in the will as well, to proactively protect their interests if family members object to their inheritance after their partner has passed.
Digital assets also need to be protected. A complete inventory of accounts, including the URL, username and password, needs to be made. Some platforms, such as Google and Apple, allow a digital legacy contact to be designated. Others require directives allowing another person to access accounts. Cryptocurrency is especially vulnerable if no planning has been done. Identity theft and scams affect living people. However, inactive accounts are even easier for online thieves to exploit.
It’s also important to have a Power of Attorney and a Healthcare Power of Attorney in place, so that someone you trust can make medical and financial decisions in case of incapacity.
It’s far easier to do all these things before they are needed. The consequences of not planning for incapacity or death are considerable. Make an appointment with an estate planning attorney and get it done.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
