When the Unimaginable Happens, Are You Prepared?

As the public health situation continues to evolve around coronavirus (COVID-19), we draw our attention to our own wellbeing and that of our loved ones. Given the current health concerns, the volatility of the financial markets, and social distancing, the once-unimaginable scenario is now a reality. Given the state of our current reality, it is important for people to review their estate plan to ensure their plans protect against unimaginable – but often real – scenarios.

Your estate plan usually includes a Will, Trust, Powers of Attorney, Health Care Directives, and more. Now is the time to review all of them to make sure they reflect your wishes.

Reviewing Your Will or Trust

If you do not have a Will or Trust, then now is the time to act. With a Trust, the Trustmaker keeps control over their assets, avoids uncertainty and unintended consequences, and avoids probate proceedings. That’s why a living Trust plan often is preferred by many clients and professionals alike.

Reviewing Your Beneficiary Designations

Your estate plan also includes beneficiaries. Beneficiaries are those who you name to inherit the property from your estate plan. Be sure you know the beneficiaries on your Will, Trust, and any accounts with a pay upon death designation (which is an account with a named beneficiary). You should name at least two contingent beneficiaries in the event the first or even second beneficiary pre-deceases you.

Also, see if you need to update your beneficiaries and how they are to receive the property. Will they receive the property outright or in trust? Do you have any beneficiaries who are minors or are bad with handling money? These questions help determine which estate plan is right for you.

Reviewing Your Financial Power of Attorney

The Power of Attorney is especially important if you have a business or find yourself needing more help handling your financial matters. The Durable Power of Attorney allows you to designate a person (called an “agent”) to make financial decisions on your behalf. If you are unable to handle your financial matters, then your trusted family member or friend can handle those financial matters for you.

For example, in the future, if you are infected with coronavirus or any other ailment and unable to make financial decisions, then your agent can manage your bank account, pay your bills, and even handle business matters for you.

Reviewing Your Healthcare Power of Attorney

The person you appoint as your health care agent makes medical decisions for you when you are unable to make them.

If no Health Care Power of Attorney exists, the law designates your next of kin, such as a spouse or children, to make decisions for you. If there is no spouse and multiple children, this can lead to difficulties in locating children and obtaining all the children’s consent. Notably, longtime partners or other loved ones who are not the legal next of kin will not have any right to make medical decisions on your behalf without a Health Care Power of Attorney.

As with other powers of attorney, it is advisable to name multiple contingent agents whom you trust.

Reviewing Your Advance Medical Directives/Living Will

Advance Medical Directives provide guidance to doctors and the healthcare team if you are no longer capable of making medical decisions for yourself. Advance Medical Directives may specify medical treatment to which you may consent or refuse, or designate a surrogate decision-maker, or both.

Your Living Will indicates your desire not to be kept alive by “extraordinary means” if you have a terminal and incurable condition, are in a persistent vegetative state, and/or have advanced dementia. These measures only prolong life, not cure the ailment. Ask yourself, and discuss with your family, if you are okay with respirators helping you breathe and keeping you alive artificially.

While these are difficult conversations, they should be discussed ahead of time with your loved ones.

Be sure to reach out to Strauss Attorneys, PLLC if you believe that our current circumstances encourage you to take action steps to take care of your own estate planning needs. We will be happy to consult with you about your personalized situation.