Aging in Atlanta

Estate planning deserves a spot on your spring checklist

Take a moment this season to review your documents.
Spring is a practical time to review beneficiaries, update powers of attorney and make sure your wishes are clearly documented. (Courtesy of Getty Images/iStockphoto)
Spring is a practical time to review beneficiaries, update powers of attorney and make sure your wishes are clearly documented. (Courtesy of Getty Images/iStockphoto)
By Karon Warren – For The Atlanta Journal-Constitution
3 hours ago

People often refresh what they can see: They repaint walls, replace old appliances, refinance mortgages. But the documents that quietly determine what happens in a crisis — or after death — are often neglected for years.

“Estate plans should be updated when events occur in your life that change the property that may be part of your estate or how you want it distributed,” said Dave Fagundes, professor of property law at the Emory University School of Law in Atlanta. “If you’ve bought a new house or started a new brokerage account, it’s a good idea to review your estate plan to make sure those changes are reflected.”

The same is true if you’ve had another kid, gotten a divorce, or move to another state, because different jurisdictions have different laws governing trusts and wills, he said.

To keep your estate plans current, here’s what to review this spring regarding wills, trusts, beneficiaries, powers of attorney and funeral wishes.

Last wills and testaments are essential

Regardless of your age, whether or not you have children, or how much money you have, you should have a will.

“Even if you’re young, anything could happen, and it’s never a bad idea to be prepared just in case,” said Fagundes. “Even if you don’t have that many assets, your estate plan should also specify your preferences for how you want your end-of-life care to be managed and who has the power of attorney over your health care and financial matters if you are unable to decide for yourself.”

If you already have a will, it’s important to review it to ensure the directives still match your final wishes. For instance, if you have children and those children are now grown, you can remove any provisions establishing a guardian for them. Or, in the event of a divorce or death, you may want to redirect items you originally planned to leave to your spouse.

“Sorting out these issues clearly can be a gift to your surviving loved ones by sparing them the need to make guesses about what you may want when it’s too late to ask,” Fagundes said.

The goal is to make sure your will reflects your final wishes, and those wishes simply may change over time.

Consider a revocable living trust

Like a last will and testament, a revocable living trust documents how you want your assets distributed following your death. However, unlike a will, a revocable living trust does not have to be filed in probate court, which could save your loved ones time and money to settle your estate. It also keeps your personal matters private.

You will need to sign over your assets to the trust, which you can still manage as the trustee. You can name a successor trustee to take over in the event you are unable to or following your death. After your death, the successor trustee distributes your assets according to your wishes without the need for probate court.

Think about your powers of attorney

In the power of attorney document, you choose the person you want to manage your financial matters in the event you’re no longer able to do so. You can do the same for your health decisions with a medical power of attorney.

“You can have different people for health versus financial powers of attorney,” Fagundes explained. “You’re not obligated to have it be the same person. And if you feel as though different people have expertise or other reasons to be better situated to exercise the power of attorney in different respects, then you should do that.

“One consideration should also be, don’t delegate powers to different people if you think those people are on radically different pages about what your best interests are.”

Once you have powers of attorney in place, they typically don’t require frequent revisions. But that doesn’t mean they should be forgotten. You may want to update them if you decide to choose someone else to handle your financial or health decisions.

Don’t forget an advanced health care directive

Also known as a living will, an advanced health care directive outlines your preferences for medical treatment and end-of-life care if you are unable to communicate. It can address questions about life-sustaining measures, organ donation and other critical decisions that might otherwise fall to family members in crisis.

The living will differs from the medical power of attorney in that the latter allows someone else to make health decisions on your behalf, while the living will provides direct instructions for end-of-life care. Ideally, the person you designate for your medical power of attorney understands your values and is prepared to advocate for you.

By putting your wishes in writing, you reduce uncertainty, and can ease the emotional burden or stress on loved ones.

Keep your beneficiaries current

If you own insurance policies, retirement accounts and even bank accounts, you should have filled out forms stating who should receive the funds from those assets at the time of your death. This allows those funds to go directly to your chosen recipients without having to go through your will.

This has two benefits: First, your beneficiaries don’t have to wait for the will to go through probate to receive the funds. Second, those funds are not considered assets of the estate, so they will receive the full amount as you direct.

“If a loved one dies, you do not become personally liable for their debts,” Fagundes said. “Their creditors can, of course, take what they are owed from the estate before beneficiaries get a share of it, but they cannot come after your separate accounts to get money owned to them by the decedent.”

It’s important that you review the beneficiary designations for all of your assets to keep them aligned with your final wishes. If your circumstances change, contact the financial institution or the appropriate party responsible for your account to update the paperwork.

Make your final wishes known

If you have specific plans for your funeral, it’s important to write down what those plans are. This could range from the type of service to the music to play to your casket choice. Don’t assume your family knows what you want.

By writing down your funeral plans and placing it with your estate documents, you provide a guide for how your life should be honored after you’re gone. Remember to review your funeral plans often to ensure they still reflect what you want.

Confirm your estate documents are legal

To make sure your estate is handled according to your wishes, it’s important to confirm that your documents are legally valid and binding. Requirements for signing, witnessing and notarizing wills, trusts and powers of attorney vary. Even a small error can create complications later.

Working with an attorney who specializes in wills, trusts and estate planning can help ensure your documents meet current legal standards and reflect your goals clearly. While online templates may work for some situations, professional guidance can provide added confidence that your documents will hold up when they’re needed most.

Another option is to use an online service that specializes in legal documents. These include Ethos, LegalZoom, LegalShield, and Trust & Will. Some county legal aid offices may offer free or low-cost consultations for estate planning documents, so check with yours to see what’s available. You also can reach out to local law schools to see if they offer these services at a reduced cost.

Setting up your estate to care for your loved ones doesn’t have to be difficult, but it should be routinely updated to make certain your final decisions are honored.

About the Author

Karon Warren

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