Tonight’s essential blog post on Estate Planning was written by our own Guru of Wills, Trusts and Estates, Steve Worrall.
October 19th-25th marks National Estate Planning Awareness Week in the United States. The observance seeks to educate the public about the importance of having proper estate planning documents in place should death or incapacity occur.
Estate planning is one of the most overlooked areas of personal financial management. According to the National Association of Estate Planners and Counselors, it is estimated that over 120,000,000 Americans do not have estate plans to protect themselves or their families in the event of sickness, accidents, or untimely death. Furthermore, according to a survey by Lawyers.com:
69% of adult Americans do not have a Living Will or Advance Medical Directive
58% of adult Americans do not even have a basic Last Will and Testament
Only 21% of adult Americans have established a trust for estate planning purposes
As an estate planning attorney in Georgia, I believe many people overlook the importance of estate planning because they think it’s only for the elderly or “super rich.”
Protecting the following four areas is absolutely critical for every adult for the following reasons:
Your Family: If you have minor children, estate planning allows you to appoint the people you want to raise them in the event of your unexpected death or incapacity. Using Trusts, you can protect minor children, and even adult children, who may not be prepared to receive a large sum of money after you die. Tools such as healthcare directives and powers of attorney can make it easier for your family to oversee your medical and financial affairs during a healthcare crisis. Not to mention, estate planning can help shield your loved ones from unnecessary court and legal fees, taxes, strife, and family feuds during an emotional time of crisis or loss.
Your Finances: Whether you have a large estate or a simple home and a modest savings account, estate planning can help ensure more of your money goes to your family and not the government after your passing. Proper estate planning can also help seniors and baby boomers qualify for Medi-Cal and additional VA Pension Benefits for healthcare without becoming impoverished or “spending down” everything they own. Many professionals such as physicians and contractors also look to estate planning to shield their personal assets from lawsuits, creditors, and other risks associated with their occupations.
Your Wishes: Do you have assets you wish to leave to certain people? Are you in a non-traditional relationship or blended family and want to ensure your loved ones are taken care of and share in the inheritance you hope to leave behind? Is there someone you trust to make important medical or financial decisions on your behalf if you are unable to do so? Without estate planning documents in place, all of these personal decisions will fall to the courts and state law if the unthinkable happens.
Your Independence: With a solid estate plan in place, you no longer have to fear aging and whether or not you’ll become a burden to your kids during your golden years. Instead, tools such as living trusts, powers of attorney, insurance policies, and healthcare directives can help you fund your future care needs and carefully design the life and independence you wish to enjoy during your later years.
Everyone needs an estate plan-some are just more complex than others. This is why National Estate Planning Awareness Week is a great time to review your personal and financial situation and learn how things like Wills and Trusts can help protect your assets and the people you love. You are never too old (or too young!) to get started: If you own a home, have minor children, children with special needs, retirement accounts, insurance policies, a business, or you are in a non-traditional relationship, you need to take legal steps to protect yourself and make your wishes known!
Steve works with all of our clients on Wills, Trusts and Estates from our offices in Marietta, Atlanta, Lawrenceville, Gainesville, Canton and Savannah.