Creating an Estate Plan requires taking the time to think through several important, and sometimes difficult, decisions. A common misconception is that estate planning and the decisions involved with it involves simply designating who gets what after death. In fact, decisions range from what care you’d like to receive, who should be in charge of that care, what your family receives at your death, how your family is taken care of at your death, and how to fund your plan with your specific assets. We work closely with clients to understand their goals and what is important to them, and together, implement a comprehensive, custom plan that will achieve those goals.
First and foremost, our office encourages clients to think very hard about who should be appointed to take care of them if they become incapacitated or otherwise unable to care for their own needs. We appoint these people in what we refer to as Health Care or Medical Powers of Attorney. These documents handle decisions that must be made while you are still living; if not drafted and executed correctly, a court will be called upon to make these decisions for you. By executing a Medical Power of Attorney, clients maintain control by appointing people they trust to honor their wishes and lifestyle. Directions regarding care and end of life decisions may also be specified within the document, thereby taking the burden off of your loved ones. In addition to the Power of Attorney document, our office includes HIPAA authorizations allowing your designated advocates to have access to your medical records and information if and when they need it. These documents should be reviewed by an attorney at least once every three to five years to be sure powers are updated and the documents are in compliance with everchanging laws.
In addition to medical decisions, our office places great importance on designating an agent to make financial decisions as well. In order to do this, we create a Durable Power of Attorney naming the people we trust to prudently handle our money, businesses, real estate, and other assets. These documents bestow specific powers allowing our agents to file taxes, invest, start litigation, and pay your bills. That being said, not all Durable Power of Attorneys are created equal. A comprehensive power of attorney will also include powers that allow your agents to protect assets in case a nursing home or long-term care is necessary. Without a good power of attorney, your loved ones will be required to go to court and ask for the judge’s permission to enact these plans.
Finally, there is the actual estate to divide among beneficiaries and all the decisions that go with that. This includes what type of estate planning vehicle we use, who gets what, and who is going to be in charge of it all. We discuss the differences between a will and a trust, different kinds of trusts that could apply depending on the client’s specific situation, and the costs and benefits of all. Without a vehicle that divides assets, your assets will be divided according to the current laws under the State of Michigan. Sometimes this works, but most times it doesn’t. Don’t take chances with your life and your assets. It’s never too late or too early to start planning.