Though COVID is an ongoing threat for the vulnerable, the worst of the pandemic is behind us. At the same time, there were some valuable lessons learned. From an estate planning perspective, the tenuous nature of life as we know it was clearly demonstrated. In fact, according to the Centers for Disease Control and Prevention, average life expectancies have been measurably impacted by the pandemic.
Estate Planning Preparedness
In spite of the fact that passing away is one of the two certainties of life, people are surprisingly unprepared.
Caring.com has been conducting surveys on an annual basis to measure the estate planning preparedness of American adults. In 2022, just 33.1 percent of respondents stated that they had wills or trusts in place.
The figure was 27 percent for individuals that are between 35 and 54 years old, and it was 24 percent for younger adults
Obviously, people that are between 18 and 55 years of age do not usually pass away, but it does happen. The most disturbing thing about the lack of preparedness is the fact that many of these people are the parents of dependent children.
In addition, the numbers for those that are over 55 are not very encouraging. A mere 45 percent of people in this age group have estate plans in place.
Estate planning is one of the core responsibilities of adulthood, and it is irresponsible to go through life without a plan. Let’s look at the components that you should include in your estate plan to cover all your bases.
Asset Transfers
The facilitation of postmortem asset transfers is at the core of the estate planning process, and a simple will is not going to be the best choice in many cases. There are multiple different types of trusts that can be utilized, and the right approach will depend upon the circumstances.
This is one of the reasons why you should steer clear of do-it-yourself estate planning notions. As a layperson, are you aware of all the different devices that can be utilized? Do you know why you should use one type of trust instead of another?
There is no reason a person that is not in the estate planning field would be able to answer these questions in the affirmative. If you consult with an attorney from our firm, you can become apprised of your options so you can make fully informed decisions.
Incapacity Planning
Your estate plan should address the eventualities that you may face during the latter stages of your life.
In some cases, doctors can keep people alive indefinitely through the utilization of life-sustaining methods like cardiopulmonary resuscitation, mechanical respiration, and artificial nutrition and hydration. You can use a living will to state your preferences with regard to the implementation of these techniques.
The living will can go beyond the life-support question. You can also include your comfort care medication choices and your organ and tissue donation designations.
To account for medical decision-making that is not related to life-support, you should add a durable power of attorney for health care. In this document, you name someone to act as your representative for medical matters if you become unable to communicate your own choices.
Another health care related document that should be part of the plan is a HIPAA release. This acronym stands for the Health Insurance Portability and Accountability Act that protects the privacy of patients.
When you sign a release, you give your health care agent the right to communicate freely with your doctors about your condition. It should be noted that you can empower others as well if you would like to expand the circle.
The incapacity plan should also address the financial part of the equation. A durable power of attorney for property should be added, and if you have a living trust, you can name a disability trustee to act as the administrator in the event of your incapacity.
Attend a Complimentary Seminar!
We conduct seminars on an ongoing basis, and you can obtain a great deal of important information if you attend one of these sessions. There is no charge, but we ask that you register in advance so we can reserve your spot.
You can see the dates if you head over to our Connecticut Estate Planning Seminars Page. When you identify the session you would like to attend, follow the simple instructions to register.
Mr. McCann is licensed to practice before the courts of the State of Connecticut. He is a member of the American Academy of Estate Planning Attorneys.
Mr. McCann provides to his clients, trust and estate planning, and trust and estate administration services. Formerly, Mr. McCann was an adjunct professor of economics in the State of Connecticut Community College system, and a Commissioner of the Town of Simsbury Zoning Board of Appeals.
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