LIFE AND ESTATE PLANNING:
BIG PICTURE ANSWERS TO THE QUESTION WHY?
What and Why?
Many people fail to plan for emergency events until it’s too late. When you find yourself in crisis, you need to feel secure knowing that your personal, financial and medical affairs will be managed according to your best interest and wishes. An estate plan allows you to voice your preference on how your personal and financial affairs should be managed upon your death. A life plan provides instructions and guidance on these matters when you become physically or mentally unable to handle them yourself. The purpose of a good estate and life plan is to ensure your own peace of mind and the security of your family after an emergency has occurred.
Health Care Agents & Durable Powers of Attorney
Your health care agent or durable power of attorney is the most important person advocating for you when you are no longer able to care for yourself. In Wisconsin, family members are not automatically authorized to make medical decisions for you. Without a properly executed durable power of attorney, the matter would go to court where a legal guardian would be assigned. This process can take days to months. To avoid any delay in care, you should have an agent named before any need for such arises. At a minimum, one should be named while you continue with your life and estate planning.
Health Care Directives
The health care directive is important in determining the type of medical care you receive. It is your opportunity to voice your choice of care. You may have personal, cultural or religious reasons for your choice of care. Your wishes and the reasons for them must be stated clearly in your directive to avoid any confusion. Health care directives are activated only upon the signature of two doctors who have diagnosed incapacity. As you prepare your health care directive, take care to consult with a medical professional to better understand the details and consequences of each medical treatment you may choose to opt in or out of.
Dying Without A Will
What happens if you’ve failed to prepare a will before passing? This is called dying intestate, or dying without a will. Every State within the United States has its own intestate laws. When a person dies intestate, the local court of jurisdiction will intervene and determine by law how the estate will be managed and divided. Having a will in place will better ensure that your property and family affairs will be managed and divided according to your own personal preference.
Cost Savings
Another benefit to having a good estate plan is cost saving. You can creatively minimize taxes and cost with a well structured estate plan. Trust accounts are popular tax minimizing tools. Life time gifting is another easy method. How you incorporate any particular method or tool in your estate plan will depend on the size or complexity of your estate and your specific concerns. The right plan for you would preserve the most value of your estate, adequately care for your spouse and children, minimize taxes to your beneficiaries and benefit more than one generation of your family.
