I hear the same excuse over and over….
I don’t have an“estate.”
I have more debt than assets.
The only thing I have is my home.
As you may have guessed, these are excuses that people in Jacksonville, Florida make for not preparing an estate plan. Is it the culture of our area? They think that they don’t need it. These people are sadly misinformed. They think estate planning is only about money and transferring that money on their death. Estate planning does take care of financial issues, but the way I see it, the most important reason for doing an estate plan is for the benefit of the people that you leave behind.
Further, senior citizens do not think about the life planning aspects of estate planning. Life planning is planning for the management of your financials (assets and monthly income and expenses) and making medical decisions on your behalf if you cannot make those decisions. Life planning also means asset preservation if you have long term care needs during you, or your spouse’s, lifetime.
Estate planning is essential for senior citizens who are concerned about the well-being of their loved ones. No matter what your level of wealth happens to be, there are decisions that will have to be made if you become incapacitated or when you pass on. If you don’t leave detailed instructions for the type of medical care you want or what to do with your things, you will be putting those you love most in the position of being a mind-reader. They will have to do their best to figure out what you would have wanted and then deal with the consequences such as unhappy family members who disagree with them. Do you really want to cause this type of stress for them at a time when they are already upset and mourning? I doubt it.
I realize thinking about these things is not easy or fun, but approaching it in an organized manner may help. Here’s a list of things to consider when planning your estate:
- Talk to close family members and let them know how you would like to handle the dispersal of your assets and sentimental items. Also, talk to them about the type
of medical care you would like to receive should you become incapacitated. Chances are, if everyone knows your plans ahead of time, there will be fewer arguments and a lot less stress. Now, if you do this, it is also necessary to have your wishes outlined in legally binding written documents because one family member might interpret your verbal instructions different from another family member. - Prepare a list of all of your assets including your home, your financial accounts, insurance policies and any personal possessions. This helps transition of financial control from you to your trusted person to handle your finances if you cannot. I can’t tell you how many times I’ve heard someone say have their loved one passed away that “I have no idea what he owned or owed, how do I find that out?”
- Make a list of everyone that you would like to be a beneficiary of your estate. You may also want to include organizations that are meaningful to you.
- Plan for how you would like your pets cared for if something should happen to you.
- Make a list of passwords, PIN numbers and other codes that someone might need. If you just do online banking with paperless statements, how will your family know how about the account?
- Think about who you would like to put in charge of your medical care and who you would like to oversee the dispersal of your assets. You can appoint different people for these critical jobs.
- Consult with an experienced estate planning attorney who can offer advice about how to arrange your estate so that the person you put in charge of your financial and medical decisions will have the fewest complications.
These steps alone will go a long way in reducing the stress that your loved ones will
experience. Without these steps, the likely result in your family’s opinion, will be that you left a mess. Isn’t their well-being enough reason to do an estate plan?
If you answered “yes,” then be sure to give our office a call at (904) 357-0076 and ask to schedule a vision meeting. These comprehensive sessions are normally $500, but you can come in absolutely free with the mention of this article.
