When we think about estate planning, most of us think that we have time to take care of that later. The problem with putting estate planning off is that oftentimes we just never get around to it. Estate planning is never crossed off our to-do list because we don’t like to face the fact that death is something that happens. 

The smart thing to do is recognize reality. Estate planning is important for everyone, not just those of us with money in the bank. A good estate plan includes legal documents that plan for you and for your heirs.

Who will make decisions on your behalf if you become incompetent or incapacitated on a breathing machine or have a feeding tube? Drawing up documents to make these decisions is not fun, but it is necessary for your best interest and the best interests of those you love.

Sometimes taking the first step is the hardest. Look over this estate planning checklist so that you understand what needs to be done. Knowing what you need to accomplish is a good first step. 

1. A Durable Power of Attorney

You need to choose someone you trust that can handle your assets and finances if you are incapacitated or pass away. This person will manage your money and assets if you are in an accident that causes you to become incapacitated or if you become incompetent due to illness or injury. Whoever you appoint will be in charge of your financial assets during any incapacitation or incompetence you suffer until your death. At the point you die, your durable power of attorney appointee is null and void and your will is the tool that directs what happens to your assets.

2. A Healthcare Proxy

You need to choose someone you trust to make your healthcare decisions should you become incapacitated.  This is an important position because this person will decide if you should stay on life support such as tube feeding or breathing respirators. You want to choose someone who has the same healthcare outlook that you do and can make a decision based on your wishes. This may be a family member or it may be a good friend. This is the kind of decision that should be seriously thought through with someone who understands the issues at stake.

3. Designate a Guardian for Children

Family and friends need to know who should care for your children should the unexpected happen. Without a designation in your will, your children are more likely to be left as wards of the state if you pass away suddenly. No one wants a family court to make the decision as to who should care for their minor children. Your family should not be left with having to make that decision either. If you make it clear in your will, the state will respect your wishes.

4. Designate a Benefactor for Children 

Family and friends need to know who will care for the assets you leave children until they are of age.  A fiduciary is someone that you appoint to care for the financial aspects of caring for your children. It can be the same person as the guardian or you can choose someone else to take care of your children’s financial needs.

5. Last Will & Testament

A will lets everyone know what you are leaving behind and who you are leaving it to. No one wants their adult children to fight over who gets what or have their assets held up in probate court while the state grabs court fees and the public is notified of everything you owned. Any creditors or people who want to make a claim on your estate can show up at probate court to fight for a piece of your estate.

In addition, if you are an NC adult with more than $20,000 in the bank without a will, your estate will have to pay estate taxes and probate court fees as your relatives make their case for who they think should receive your assets.

6. Trusts

This is a legal framework that can protect assets. Generally, someone you trust acts as a Trustee and manages the assets involved which can include real property such as your home. Irrevocable trusts can also help your estate avoid Medicaid Recovery of expenses after your death. In NC, Medicaid Recovery works with the state to act as a claimant in probate court and receive a share of the estate. They receive monies from the estate for any long-term care that was provided by Medicaid. 

To prevent this scenario and let the inheritance go to the heirs, some attorneys help set up an irrevocable trust handled during your lifetime by a Trustee. This type of trust does not go through probate court and is generally inaccessible to Medicaid Recovery attempts.

Seek Out an Estate Planning Attorney

Now that you have taken the first step and learned a bit about how to make an estate plan, take the next step. Go through the estate planning checklist with us at Vail Gardner Law. Our knowledgeable estate planning attorneys can discuss your next steps. When we put off estate planning, we are denying reality. When we make a plan, we can know that no matter what happens, we have done our best to make good decisions for the time when our decision-making is over.