Preparing for a stressful expected event, such as a move, is not something most of us look forward to. But we can usually keep the stress level in control by planning ahead. We typically plan careers, having a baby, retirement…but what about events that we didn’t see coming? How do we plan for what we don’t know—or think—will happen?
People often hear the words “estate planning” and immediately think of old age and death. They may picture a retired couple of considerable means who need advice on how their wealth should be distributed after they pass away. But estate planning is not only for wealthy seniors. It’s for people at every income level who want to protect their children and other loved ones—including themselves.
Consider this situation: A previously healthy 42-year-old single parent has been seriously injured in an accident. Who could make medical decisions if that person could not communicate? Who could access the appropriate funds and keep the household bills paid? Who could step in and care for the children while they are recovering?
This situation has a few more moving parts:
An unmarried couple has lived together for nine years. They co-own a home, share a savings account, and have an eight-year-old daughter. They often refer to one another as fiancé(e) or spouse. Each brought separate financial accounts into the relationship and, for now, is comfortable keeping those accounts separate. Still, they intend to review their shared and individual finances when time permits but believe they have protected their daughter by naming her as the sole beneficiary of their respective life insurance policies.
In an emergency, would one partner be able to obtain information about the other’s medical condition? Who has the authority to make medical decisions if one became incapacitated? And would the other partner be able to access separate financial accounts, if necessary, to pay household expenses and care for their child?
If you are single, childless and aren’t worried about what happens after you die, you may wonder why you should even care about estate planning. But an estate plan can also contemplate what happens to you in the event you become temporarily or permanently unable to manage certain matters for yourself while you are still alive—and that can happen at any age.
Is considering these possibilities sad, negative, or somehow mystically making a catastrophic event more likely to happen? No more so than paying premiums on an insurance policy for a car accident that hasn’t happened—and may never happen. It gives you peace of mind.
My primary goal when meeting with a client or couple to discuss a strategy for a customized estate plan is to provide clarity about the estate planning process and documents. Some questions we may explore together include: What is important to you? Who do you trust to speak for you if you cannot speak for yourself? Who could manage your finances? Who should care for your children? How should your property be handled? What instructions would you want your family to follow? Do you have a living legacy you would like to pass down through the generations?
I can then advise you on the type of estate plan that may best address your concerns.
These are not easy questions. The good news for relatively young and healthy individuals is that you do not have to have all the answers immediately. I can help you navigate the process. After that, the next step may not even be creating an estate plan. It may be further refining your questions and answers and gathering the necessary information on your own schedule, without pressure.
The biggest journey often begins with a tiny step. If you live in New York State, contact me to ask how you can schedule a virtual Estate Planning Strategy Conference.