Archives for January 2018

End-of-life care is essential for maintaining the dignity and respect of people during their final days. Living wills and health care powers of attorney play an important roll in ensuring that a person’s final wishes are truly upheld. Without these documents, California residents might not receive the care they envisioned.

Unlike wills used to distribute assets, living wills focus on medical care and interventions. If someone becomes incapacitated, cannot communicate their wishes or is otherwise unable to make health care decisions on their own behalf, their living will can provide guidance. These documents are especially important for those with strong feelings regarding certain medical interventions or life-sustaining care, although virtually everyone can benefit from outlining even basic care wishes.

A living will alone might not be sufficient. In most cases, a durable health care power of attorney is necessary to fully realize a person’s wishes. This power of attorney gives a designated individual the power to make decisions both according to and outside of a living will. A financial power of attorney should also be included with these documents, which gives someone the ability to handle a person’s finances if they are incapacitated. Due to potential conflict of interests, it is a good idea to name separate individuals in these powers of attorney.

Most people in California focus on the “after” part of estate planning — after death. However, it usually falls on family members to seek medical care on another person’s behalf during their final days, which can be a tremendous burden to bear without any guidance. Living wills and accompanying powers of attorney help round out estate plans and provide clear and concise instructions regarding a person’s final wishes.

Source: FindLaw, “The Power of Attorney, Living Will and Your Healthcare“, Accessed on Jan. 21, 2018

Discussing end of life matters can be uncomfortable for everyone involved. However, failing to deal with and address that discomfort can lead to a serious problem — no legacy to leave behind. Tackling this difficult topic and delving into estate planning can ensure that a person’s final wishes are respected, and one’s legacy preserved.

Leaving behind the right legacy is important, especially for those in California who are charitable-minded. These individuals can use wills and trusts to carry on charitable giving and donations even after their death. This important aspect of estate planning is often overlooked, and many people who make regular charitable donations forget to include it in their estate or wrongly assume that their loved ones will carry on the tradition.

Legacy can also involve how people remember you. For some, this includes their final days of life. No estate plan is complete without an advanced health care directive —  also called a living will — which outlines a person’s wishes regarding medical care and interventions. A health care power of attorney should also be included, which will give another person the legal right to make those decisions on the maker’s behalf, in specified circumstances.

Estate planning is more than just dictating how much inheritance children should get. California residents can use their estate plans to create an ongoing legacy that reflects their values and what was most important to them during their lives. It is important to consider what role charitable giving, health care directives and other planning documents can contribute to a comprehensive estate plan.

Source: investopedia.com, “Leaving a Legacy: Why You Need An Estate Plan“, Kay Kramer, Jan. 5, 2018

The start of a new year means different things to many people. For some in California it is a time to forge ahead with different goals, while others find it a time of peace and reflection. No matter how you ring in the start of another year, it is usually a good idea for people to carefully consider the contents of their estate plans and whether any updates to their wills are required. Failing to regularly update estate plans can cause considerable amounts of grief for loved ones.

When reviewing a will for possible areas of attention, many overlook beneficiary designations. A will might dictate that Person A should receive life insurance benefits in the event of the policy owner’s death, but if the policy’s designated beneficiary lists Person B, this trumps the will. This is the same for retirement plans and insurance policies that pay out to a beneficiary upon a person’s death. Estate planners should be vigorous when updating their plans, and change any listed beneficiaries on their accounts as necessary.

It is also smart to reconsider the named executor, heirs and other beneficiaries of any given estate. Decisions made years ago might have been appropriate for the time, but no longer reflect current situations. A named executor might have once been a trusted friend that an individual has since had a falling out with, or an heir might have passed away. These issues can be fixed quickly enough, but if not, can cause serious issues during probate.

An annual review of estate plans is usually well-advised for most people in California. A thorough check of wills, trusts and other important documents can prevent wrong designations or incomplete documents from hampering estate plans and their creator’s intentions. Otherwise, families might have to deal with the consequences during lengthy probate proceedings that can use up valuable resources.

Source: wmur.com, “Money Matters: Estate planning mistakes“, Marc Hebert, Dec. 28, 2017