The COVID-19 pandemic caused Americans to change their behavior in a number of ways, and one of these changes is related to estate planning. For the first time since the study’s inception, Caring.com’s 2021 Wills and Estate Planning Study found that young adults are now more likely to have an estate plan than middle-aged adults.
In fact, all adults over age 18 should have some basic estate planning documents in place. And this is true regardless of how much money you have, whether you are married or single and whether or not you have children. But, if you are an adult of any age and the pandemic didn’t inspire you to create your estate plan, here are four reasons why you shouldn’t wait to get your plan started.
• Incapacity leaves you vulnerable.
If you become incapacitated without an estate plan, your family would have to petition the court to appoint a guardian or conservator to manage your legal, financial and medical affairs. This process can be costly, time-consuming, and traumatic for everyone involved. And, the court could appoint a family member you’d never want in control. (Just look at what happened to Britney Spears.)
An attorney can help you put estate planning vehicles in place that grants the person(s) of your choice the immediate authority to make your medical, financial and legal decisions for you. Strategies can be put in place that provide specific guidelines detailing exactly how you want your medical care to be managed, including critical end-of-life decisions.
• Control who inherits your assets.
If you die without an estate plan, state law dictates who inherits your assets, which hinge largely upon whether you are married and if you have children.
Spouses and children are given top priority. If you’re single with no children, your assets typically go to your parents and siblings.
It’s important to note that state intestacy laws only apply to blood relatives, so your unmarried partners and/or close friends would get noth ing if you fail to create a plan. If you want someone outside of your family to inherit your property, having an estate plan is an absolute must.
• Minimize the mess.
Entirely separate from anything to do with court, conflict or your legal documents, consider the reality of the mess you’ll leave behind if you do nothing. Look around yourself right now, what do you see? Someone would have to deal with all of that, if something happens to you, whether that something is an illness, injury, or death.
Now, imagine that same someone trying to figure out what you own, where it is, and how to access it? Make an inventory, keep a log of passwords, basically set up a roadmap to help someone know what you have and how to access it. In our paperless society, accounts can go unknown so that no one may claim your assets.
• Ensure your children are raised by the people you trust.
If you’re the parent of minor children, the most devastating consequence of having no estate plan is what could happen to your children in the event of your death or incapacity. Without a plan in place naming legal guardians for your kids, it will be left for a judge to decide who cares for your children.
If you have minor children, your number-one planning priority should be naming legal guardians to care for your children if anything should happen to you.
Stop making excuses.
While many people said that the pandemic inspired them to see a greater need for creating an estate plan, the 2021 Caring.com study also found that more than one in three Americans still don’t think that estate planning is important – or they haven’t even thought about it at all.
However, the biggest benefit you stand to gain is the peace of mind that comes from knowing your loved ones will be provided and cared for no matter what happens to you.
This article is a service of the Law Office of Lasca A. Arnold, PLLC. We do not just draft documents; we ensure you make informed decisions, for yourself and the people you love.
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