When I ask people who they think Estate Planning is for, the unanimous answer is Parents, Grandparents, Baby Boomers, or Business Owners. Rarely do they answer Millennials or Young Baby Boomers…this is a common mistake. Yet with the lifestyles and activities of these groups today, it is critically important they have an Estate Plan in place.
It isn't about the "Stuff"
For someone who is young and healthy, estate planning may be the furthest thing from a Millennial or Young Baby Boomer’s mind. You are probably thinking more about how to enjoy life or planning for your next vacation. And since you are still relatively young, why should you be thinking about an estate plan when you have hardly any “stuff” (assets).
You have an active lifestyle with very few encumbrances or things to tie you down. Unfortunately, accidents happen to even the young and active…possibly even more frequently than with an older generation. In fact, accidents are the leading cause of death of younger adults, according to the Center for Disease Control. Just watching the evening news or read the newspaper (or online news sites) demonstrates this statistic.
We have to talk about “what if”
What happens if you become incapacitated? If you are without a “life plan” you could end up in a guardianship situation. And unfortunately, if you happen to die without an estate plan your state legislature has one for you…it’s called “intestate succession.” If you happen to be unmarried, depending on the state, this plan would typically mean that everything you have would be going to your parents and siblings. Without an estate plan, you essentially have “no say” over which member of your family gets your assets or control.
Accidents happen…ask Terri Schiavo
Since most of the time you will end up in an accident that isn’t fatal, you might think everything will be fine…not so fast. Take the situation that happened to Terri Schiavo. She collapsed at home when she was in her early twenties. Without a plan detailing what happens next, things can get really messy. In Terri’s situation, a battle ensued between her parents and husband over her care.
In she had an estate plan, she could have spelled out who she wanted to make medical decisions for her if she couldn’t make them for herself. With the proper plan in place, she could have voiced her opinion about health care and end-of-life decisions.
Maybe you want your spouse, mother or father, or a brother, or sister to make those decisions. When you create an estate plan, you get to decide. Why play against the odds and think it will never happen to you? Even if there is a remote and small chance of a situation like this happening to you, wouldn’t it take a lot of stress off your family members if you had it all spelled out in detail? Of course it would, and it would result in a lot less grief for your family. You have the power to choose how this will play out for you and your loved ones in the future.
What about the money?
Another critical component of an estate plan is a “financial power of attorney.” This allows someone to make financial decisions on your behalf about your assets while you are alive. You can give that power to someone so they could act immediately (an “immediate” power) or the power could exist only upon your incapacity (a “springing” power). An immediate power can be useful if you are going to be traveling out of the country for an extended period, such would be the case of a soldier who is deployed or a missionary going overseas for a few years. If you don’t want to give anyone power over your assets while you’re still capable, perhaps the “springing” power is a better fit.
What to do next...
Take a look at your own situation and ask yourself if you are acting in a way to enable a judge to decide in your favor if there was some sort of disagreement or litigation pending. If not, change the way you act according to your estate plan. If you do not, either revise your actions or revise your plan. Sit down with your estate planning attorney and review where you are in life and compare your actions to your plan.
If they aren’t in alignment, talk to your attorney and develop a plan to get things fixed. If Frank Sinatra, Jr. had done this he could have avoided a lot of litigation and stress for everyone. I guarantee that when you have things in your life in alignment with your estate plan, you will find it much easier to have your plan executed the way you want and to leave a legacy to your loved ones by having things well documented and your wishes captured. It may be one of the most important things you can do for your loved ones once you are gone. Don’t be like Frank Sinatra Jr.…act the way you plan. When you do this, you will have NO.MORE.TEARS.
What to do next...
If you are over the age of 18, you are deemed an adult and you get to decide what is best for you. It’s your estate plan and you can choose whomever you want to make decisions for you and whomever you want to receive your assets upon your death. Whatever you decide, you’ll have peace of mind knowing you’ve planned ahead for any eventuality.
But the key is GET A PLAN IN PLACE! It doesn’t take a lot of time and it can save you and our loved ones a great deal of unnecessary grief. And for those that have an estate plan in place, they will only have tears for your situation but NO.MORE.TEARS. for the medical and financial aspects of your life.