You may feel you have no control over the future. Many of us struggle with high anxiety about what may happen. However, on the bright side, basic estate planning documents can help you plan for a better future. 

While anxiety can be generalized and chronic, it can also be a normal reaction to everyday stresses, such as worrying about finances, health, and family. But, there are often positive changes you can make to feel better. Let’s see how creating estate planning documents can help relieve anxiety.

Procrastination, Anxiety, and Estate Planning

Procrastination and mental health can be closely linked, leading to an increasingly self-defeating cycle. Putting off necessary actions may lead to anxiety, depression, and low self-esteem, which causes further procrastination and more negative emotions. 

People may procrastinate because they fear an unpleasant outcome, struggle with perfectionism, or feel overwhelmed. Occasional procrastination, like occasional anxiety, is normal.

However, it may be time to take corrective action when procrastination negatively impacts your life, causing you to put off important tasks. Experts recommend beating procrastination by taking on the dreaded task, even if it is just in a few small chunks at a time. They also advise getting more organized and, when necessary, seeking professional help. 

Anxiety may be rooted in concerns about the future, like what will happen when you pass away or have health problems. But you can worry less with legal documents that help define what will happen in the future concerning your:

• Health care
• Medical care
• End-of-life care
• Estate taxes
• Financial accounts
• Physical assets

About two-thirds of Americans have no estate plan. That means they have no plan for dealing with unexpected tragedies, including death or incapacity. 

Many ways of procrastinating have no immediate or tragic consequences. On the other hand, if you put off your estate plan—and tragedy strikes—it will be too late to get started. 

Ways to Act Now and Address Anxiety about the Future

Contemplating death and disability does not have to be a morbid, anxiety-producing exercise. It can be a productive exercise in which unpleasant thoughts are channeled into meaningful actions. 

For many unanswered questions you have about the future, there is a related estate planning action you can take to achieve a greater degree of certainty.

Below are some of the most common questions we all deal with and ways to take action. 

What Happens to Your Assets When You Pass Away? The Estate Planning Documents that Make the Difference

Using a will or revocable living trust, you can specify what happens to your money and property after you pass away. 

Last Will and Testament: The Most Essential Legal Document

A last will is the most basic estate planning document that adults need. Even a simple and straightforward will is helpful. At a minimum, a will should name who will receive your accounts and property (your beneficiaries) and describe the distribution of your accounts and property to them.

But be careful -named beneficiary designations on some accounts must match your last will. If not, they will go to the person named on your account and NOT to the person named in your will. Assets that go directly to the beneficiary named on the account include:

• Retirement accounts such as IRAs
• Life insurance policies
• Joint bank accounts with the right of survivorship
• Joint real estate with right of survivorship

Your will can also appoint guardians for minor children, provide funeral and burial instructions, describe how to handle your debts, taxes, and other legal affairs, and appoint an executor to carry out the instructions in your will. 

Living Trust: A Powerhouse for a Comprehensive Estate Plan

A living trust can hold your money and property for your benefit while alive. It can then distribute your assets to beneficiaries upon your death or incapacity. It is often called a revocable living trust because you can revoke the trust or change its terms during your lifetime.

For example, you can move accounts and property in and out of the trust, name a new trustee or co-trustee, and change the beneficiaries while living.

At the designated time (i.e., your death or incapacity), a trustee takes over the trust and manages the accounts and property you placed in it.

Benefits of a Living Trust include:

• Avoid probate process issues for your loved ones. Probate court can be time-consuming, and state laws can make it difficult for your named executor to handle the estate administration process. With a trust, there are no probate costs.
• With a trust, your trustee may distribute assets to your family members and transfer assets without court involvement. They may also make financial decisions based on the directions in your trust documents. You can appoint a family member or friend as your trustee or name a corporate trustee.
• Your trust is a legal entity that owns and distributes your assets for your chosen purposes. If an heir may face a divorce soon, you can structure a trust to consider the financial circumstances and help to prevent loss of inheritance to an ex-spouse.

How Can I Plan for Incapacitation or Being Unable to Communicate with Family Members, Friends, or Medical Personnel?

Contemplating incapacity can be as anxiety-inducing as thinking about death. The following estate planning tools can ensure that you do not end up in legal limbo due to a mental or physical disorder that renders you unable to manage your own affairs or make decisions for yourself.

Revocable Living Trust Document

A living trust (described above) can be written so that it takes effect when you are incapacitated. You can define “incapacity” to specify exactly what triggers a successor trustee to take over the management of the trust’s accounts and property. The trust can even lay out the procedures to follow for determining incapacity. 

Financial Power of Attorney

A financial power of attorney is the legal authority you grant to someone else, allowing that other person to manage your financial affairs and property without court involvement. The individual granted a power of attorney can handle bank accounts, pay bills, sell property, run a business, apply for public benefits, pay taxes, make investments, and oversee insurance and retirement accounts on your behalf. They are legally required to act in your best interest. 

Healthcare Power of Attorney

A medical or healthcare power of attorney is the healthcare equivalent of a financial power of attorney. It designates a person authorized to make medical and personal care decisions for you if and when you cannot make those decisions. A medical power of attorney also gives a trusted decision-maker the authority to manage your protected health information. 

HIPPA Release

A HIPPA release lets designated persons access your protected health information. Your medical decision-maker may already have this authority through a medical power of attorney. However, you may want to include others on your HIPPA release so they can stay informed about your condition. 

Living Will and Advance Healthcare Directives

A living will describes the types of medical treatment you do—and do not—want to receive to keep you alive. It also describes your preferences for pain management, organ donation, and other medical decisions.

Using a ventilator, tube feeding, palliative care interventions, and resuscitation techniques are typically addressed in the advance directives in your living will. 

How Can I Plan for My Children?

An estate plan is not just about your own peace of mind. It can also have a considerable impact on those closest to you. If you have minor children, you need to account for their needs. Several documents can help ensure that your children are taken care of. 

Last Will to the Rescue Again

Your last will can designate a guardian for your minor children in the event that tragedy befalls both you and the child’s other legal parent. It can also set up a trust and appoint a trustee to manage accounts and property for your children’s support.

Careful use of a trust and trustee for this purpose may eliminate the need for a trustee bond (paid to secure the performance of the trustee’s duties) and avoid court supervision of a minor child’s inherited assets. 

Minor Power of Attorney

A minor power of attorney lets a parent delegate somebody to care for their child for a certain period (usually up to one year, depending on state law). The named caregiver is legally permitted to make necessary decisions for the minor, such as decisions about their schooling and healthcare.

The parent can give the caretaker complete or limited authority to make these decisions. A minor power of attorney—which does not create a permanent guardianship—can be used as a stopgap if a parent is incapacitated, incarcerated, out of the country, or otherwise temporarily unable to fulfill their parental duties. 

Permanent Guardianship Designations

A permanent guardian nomination names a permanent caregiver for a minor child. The nomination can be in a will or a separate signed document. Nominating a guardian for your minor child does not guarantee that that person will end up as their guardian. The court has the authority to appoint a guardian.

Usually, the court appoints the nominee unless there is a good reason not to. Having a backup guardian is recommended in case the court rejects the primary nominee or if they cannot serve as guardian. 

Treat Yourself to Estate Planning and Stop Worrying About the Future

Rewarding yourself is a way to break out of procrastination that may hinder your estate plan goals. And what better reward is there than taking control of your future? 

Making an estate plan that includes wills, trusts, powers of attorney, medical directives, and guardianship documents can help eliminate some of the uncertainty and anxiety about your future. You can learn to live with knowing you’ve made plans for your care and comfort that reflect your wishes.

You cannot cheat fate. However, you can buy yourself peace of mind with comprehensive estate planning. Estate planning attorneys work to ensure your legal documents are in order according to state laws. They walk you through the estate planning process, ensuring you can check off each item on your estate planning checklist.

An Experienced Estate Planning Attorney Can Help You Plan for Your Future

Our experienced estate planning attorneys at Vail Gardner Law can help you navigate the complexities of wills, trusts, and other essential planning tools. We understand that every family’s needs are unique, and we tailor our approach to meet your specific circumstances.

With a well-crafted estate plan, you can secure your family’s financial future, minimize tax burdens, and honor your own wishes. Don’t leave your or your family’s future to chance—reach out to us today to start the vital estate planning process.