Federal News Network’s recent article entitled “Divorced, kids grown, moving? Time for a pre-checkout checkup!” says life changes mean changes for your estate plan, like when your children grow up and leave the home.
Let’s review some of the key components of a complete estate plan.
A basic estate plan includes powers or attorney and some mechanism for distributing your assets, in the event of death.
If you become seriously ill or injured, perhaps even in a vegetative state, you should let your family and the hospital know if you want heroic measures to be taken to keep you alive.
An advance medical directive, also known as a health care power of attorney, is essential. This document addresses two important issues. It designates an individual that you select to make health care decisions for you, if you’re unable to make these decisions for yourself.
It also includes end of life instructions (called a living will) that details what actions you wish to have taken on your behalf if you are terminally ill, in a vegetative state and if you are unlikely to recover. For example, many living wills discuss whether to be kept alive by artificial means, such as with the use of a ventilator.
Another important tool in any estate plan is a general durable financial power of attorney. This lets your agent manage your financial affairs, if you’re incapable of managing them on your own.
When most people think of estate planning, they think about a will.
While a will is very important, most people have many assets that will not be impacted by their wills. This includes assets such as jointly owned property, and assets for which a beneficiary is designated, like life insurance, TSP and annuities.
The important point to know is that everyone needs to state exactly how they want to have their assets distributed following their death. This can be via a will, a trust, or by beneficiary designations.
Reference: Federal News Network (August 31, 2020) “Divorced, kids grown, moving? Time for a pre-checkout checkup!”