Submitted by Pearson Bollman Law
The importance of making end-of-life preparations cannot be stressed enough. Many put off making these plans, thinking there is always time. The sad reality is that none of us are guaranteed time. Others may be bothered by the thought of death itself and allow this to paralyze them when it comes to making plans and getting their affairs in order for the event of death. However, most of these same people have wishes and thoughts about where and to whom their assets are distributed. Many of them also have ideas about what they do and do not wish to have happen when their life ends. Lack of preparation and planning means that these wishes likely will not happen. In addition, it causes additional strain and stress on the people who are left to sort out the affairs. An example of this is the story of Debbie.
Debbie was a teacher who had been retired for several years. She was aging alone. She never married and had no family around. She did have a small circle of friends. After retirement, Debbie’s health progressively declined, and she had more and more difficulty caring for herself. After a few years, Debbie passed away in her home.
Previously, she had conversations with a handful of her friends telling them her wishes for the possessions and assets she had. Because of these conversations, these friends each thought she had made the proper preparations to ensure these wishes would be followed.
Unfortunately, Debbie had none of the necessary end-of-life documents that would allow her wishes to be followed. Her friends were left to try to piece together a puzzle that had many missing pieces. Her burial was prolonged, and what she did have after paying expenses (to settle the estate and bury her) did not end up where Debbie wanted. This scenario can, however, be avoided.
If you or your elderly loved ones have not made end-of-life preparations, make time to do so as quickly as possible. An elder law attorney can help guide you in what you should be doing and can make sure the proper documents are in place to carry out your wishes regarding your health care. Also, you can specify what you want (or don’t want) to distribute, and who should receive your money and possessions.
The first key document to be sure you have is a will or a living trust. A will allows you to specify where your money and possessions should go upon your passing. It also allows you to choose an executor of the estate. The executor will take care of managing the estate, paying debts, and distributing property as specified. A will is administered by the court and only takes effect upon your death.
A living trust does everything a will can do, but also allows you to choose someone to manage your assets if you become incapacitated because it is effective during your lifetime. A living trust also provides privacy, as it is not subject to court administration that becomes open to the public like a will. There are numerous other advantages to a living trust that can be explored with the help of an attorney.
A living will and health care power of attorney are two additional documents that take effect while you are alive. A living will specifies your wishes for end-of-life medical care. For example, you can specify whether you want to be kept alive by artificial means or not if you are in a terminal state. A health care power of attorney authorizes someone to make health care decisions for you, in case you aren’t able to make decisions yourself. Both of these documents outline your wishes about medical treatment and care when you can’t make them for yourself, so it’s important to seek legal guidance to make sure these documents are drafted properly.
A financial power of attorney should be in the plan as well. A financial power of attorney names an agent to handle your finances in the event you are no longer able to. An agent can open and close bank accounts, write checks, and sell property if you choose to allow them the authority to do so. Like the health care power of attorney, the financial power of attorney should be created with legal advice to make sure your wishes regarding your finances are properly documented.
Having an estate plan is necessary for you to have control in what happens if you become sick and cannot make decisions for yourself and to determine what happens with your money and your belongings after death. An estate plan also eases the burden for those who are left to deal with the estate, keeping it simple and straightforward.
The attorneys at Pearson Bollman Law practice in the areas of estate planning, wills, trusts, probate, trust administration, litigation, and elder law, including, but not limited to, Medicaid planning and VA pension planning. If you have any questions about something you have read or would like additional information, please feel free to contact us. Call 563-355-8345 for your free consultation. Our office is located at 2414 18th Street, Bettendorf, Iowa, across from the entrance to Bettendorf Middle School.