There are websites that sell do-it-yourself, boilerplate legal documents, including wills and trusts. They want you to believe that anyone can plan their own estate by downloading a template and filling in the blanks.
Is this all it takes? When you take a step back and think about it logically, when you are planning your estate, you are directing asset transfers to the people you love the most. It is your final act of giving, and it will help to define your legacy, so nothing should be left to chance.
Consumer Reports Study
A number of years ago, Consumer Reports decided to examine the efficacy DIY estate planning. Staff members utilized tools that are available online through three of the leading purveyors of legal documents to create wills using hypothetical circumstances.
They engaged the assistance of three prominent legal professors and asked them to review the documents. The educators found flaws, and they stated that unintended negative consequences can come about if these downloads are used by inexperienced people.
Consumer Reports advised readers to steer clear of DIY estate planning notions unless the situation is extremely simple and straightforward. You may be reluctant to take our word for it, but this is an objective source that reached this logical conclusion.
The First Step
As a layperson, you are not going to be aware of all the different asset transfer methods that are available and why you should choose one instead of another. Actually, the best way to provide for one person on your inheritance list may not be appropriate for the next.
For example, let’s say that you are going to be leaving an inheritance to a person with a disability that relies on Medi-Cal and Supplemental Security Income. A direct inheritance could cause a loss of eligibility, because these are need-based programs.
There is a solution in the form of a supplemental needs trust. In addition to special needs planning scenarios, there are ideal ways to provide for people that are not good with money. And if you want to leave a bequest to a grandchild that will be a minor, a specific approach must be taken.
These are a handful of examples, but there are others. When you work with an attorney from our firm to develop your plan, we will gain an understanding of your situation and make recommendations based on the circumstances.
Ultimately, you will be in a position to make fully informed decisions, and you will go forward with an estate plan that is tailor-made for you and your family.
Incapacity Component
In addition to the asset transfer part of the equation, you should address end-of-life issues when you are planning your estate. Over 30 percent of people that are 85 years of age and older contract Alzheimer’s disease, and this is not the only cause of cognitive impairment.
If you do nothing to prepare for possible incapacity, the state could be petitioned to appoint a conservator to act on your behalf. Everyone in the family may not be on the same page with regard to the choice for conservator, and state intervention in your personal affairs is disconcerting.
You can prevent a conservatorship if you include an incapacity component within your broader estate plan. If you have a living trust, you can name a disability trustee to manage the trust in the event of your incapacity.
To address property that is not held by a trust, you can name an agent in a durable power of attorney for property. Medical matters should also be addressed, and this is done through the execution of advance directives for health care.
A living will is a document that is used to state your preferences regarding the use of life-support. You should add a durable power of attorney for health care to name someone to make medical decisions on your behalf that are not related to life-support.
The final piece of the puzzle is a HIPAA release that will give your health care representative the legal right to access your medical records.
Take Action Today!
Today is the day for action if you are going through life without a legacy plan. You can send us a message to request a consultation appointment at our Burbank estate planning office, and we can be reached by phone at 818-937-2335.
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