Welcome to the Life Planning Checklist!
This is the first installment of advice and reminders for all the life plans you’ve been putting off.
We’ll start with an explanation of one of my areas of expertise: Estate Planning. If you’re familiar with this topic, skip to the end for a list of action items.
If you don’t think you have an estate, you’re not alone. Heck, if you don’t know what estate planning is, you’re in good company.
I know that because when I tell people that I’m an estate planning lawyer, I usually get a lot of blank stares.
So here are the basics:
Your estate is everything you own and owe. Even if you’re in debt up to your eyeballs, you still have an estate.
Estate planning is about creating a smooth process for your family in the event of your death. If you have a lot of stuff, you want those assets to end up in the right hands. You don’t want the government in charge of deciding who gets your house and life savings.
If you don’t have a lot of stuff, you still need an estate plan. You still want to help your loved ones easily settle your debts. You want to make sure the right person is in charge of your finances. You’ll want to ensure your medical wishes are honored, should you become unable to make those choices for yourself.
Probate court is the frustrating and lengthy process that happens when you don’t plan. If you die without a will in the state of Florida, the courts will supervise the process of identifying your assets, paying your debts and deciding who gets what’s left over. The decisions will be made based on the state’s succession laws, not your own wishes.
You might have told your best friend who helped you raise your children that the house is hers when you die. But you can’t stop the courts from granting it to someone else if you don’t have a will in place.
Dying without a plan makes the process of mourning even more miserable for those you leave behind. I’ve personally seen those consequences play out in the families I’ve worked with.
You DO NOT want a probate court deciding the fate of your estate.
How do you stop that from happening? You’ll need specific documents to protect you. Here are some basics to start:
- Will: Outlines how you want your assets to be distributed and designates guardians for your children.
- Durable Power of Attorney: Authorizes someone to make financial decisions on your behalf, should you be unable.
- Healthcare Surrogate: Designates someone to make health decisions on your behalf, should you be unable.
- Living Will: Outlines when you no longer want your life artificially prolonged should you have a terminal condition, end-stage condition or end up in a persistent vegetative state.
Your action items
Your challenge is to complete at least one step this week! Complete all three steps for the best case scenario.
Step 1:
Have an intentional conversation with one key family member or loved one about your wishes when you die. Make sure they know what’s important to you. You might be surprised about what they assumed you wanted.
Here are some questions to consider:
- Where do you want to be buried? Would you rather be cremated? What should the funeral be like?
- If your children are minors, who should take care of them?
- Who should get large assets like your house or property?
Don’t wait for the perfect moment to broach the subject; that probably won’t happen. Invite them out for coffee, brace them for the awkwardness, and dive in.
Step 2:
Open an Estate in One Place account to house all your key documents and information to make it easy for your loved ones to find what they need to keep thriving. Your account will guide you in writing out the wishes you considered in Step 1 in finer detail.
Step 3:
Consult with an estate planning attorney about your specific needs and how best to protect your estate for your loved ones. My consultations are free and will give you an idea of what you will need and why. While a lawyer is not required to create a will, you don’t want yours invalidated because it doesn’t meet important legal standards. Call me at (954) 314-4747.
If you have any questions, please reply to this email. And let me know when you’ve completed one of the steps!
Next week, we’ll cover what you should know about car insurance from a trusted colleague of mine.
