Preparing for the Future: Estate Plans By Tom Williams

Quincy - A normal list of New Years Resolutions typically includes losing weight, quitting smoking, or paying off credit card debt. Most people don’t add estate planning to their list. But the beginning of a new year is a good time to start putting together the documents that will make up your estate plan. The time following the death of a loved one can be filled with emotional stress and much confusion. While grieving their loss, family members must at the same time make many important decisions, gather paperwork and carry out plans and wishes. An estate plan can help ease the emotional stress that loved ones face by outlining wishes in writing. The three most important documents that make up an estate plan are a Will, Power of Attorney and Health Care Proxy. These documents will give another person control over your affairs, which will in turn help ensure that your financial and health care wishes are carried out. Why do I need a Will? Essentially, a Will is important because if you don’t have one, the court will determine how to distribute your assets. A Will informs loved ones how you would like your assets to be handled after your death. A Will can state your preferences for how you would like money to be distributed among family members, what should happen to your property and belongings and even who gets custody of any minor children you may have. Wills can be simple or more elaborate documents. Requirements vary from state to state. However, all Wills must be in writing, must be signed, and the signature must be witnessed by another person. Changes can be made to a Will at any time. These amendments, called codicils, take effect immediately. Why should I assign Power of Attorney? Power of Attorney lets you appoint someone you trust to act on your behalf in financial or legal matters in the event that you are unable to make these decisions yourself. Functions that fall under this category include paying bills or managing investments. What is a Healthcare Proxy? A living will, also known as an advance medical directive, is a statement of your wishes regarding life-sustaining medical intervention. A healthcare proxy is responsible for following those instructions and voicing your wishes. Choose your healthcare proxy carefully. They should be able to do three key things: understand important medical information regarding your treatment; handle the stress of making tough decisions; and keep your best interests and wishes in mind when making those decisions. Funeral preparation Some families worry about having the funds to pay the funeral director immediately following a loved one’s death. Many realize they do not have the funds to do so because the estate has not been probated. Check with the funeral home you are working with. In many cases funeral directors understand that it takes several months for the Executor of the Will to be appointed and they are willing to wait for payment. If any member of the decedent’s family or a friend wishes to advance the payment for the funeral with a request that it be reimbursed at the appointment of the Executor, this is also an acceptable and allowable practice. Life is an accumulation of memories so go out and accumulate some more! Remember after the winter, spring is around the corner.

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