It is never too early to start putting your plan together. Although this may be a difficult topic to face, starting early gives you time to think about what you want and create a plan that follows your wishes and values. Without a plan, things are more difficult for your loved ones.
1. Get Your Health Care Documents in Place
Advance directives put in legal form your desires regarding end-of-life care if you are unable to understand or communicate your desires. It usually includes a living will and a durable power of attorney for health care, also called a health care proxy. The living will expresses the type of care you want or don’t want at the end-of-life. For example, do you want artificial nutrition and hydration if you are terminal? If you find the question challenging, just imagine how difficult that would be for your loved one to make that decision without guidance from you. So take the time to think about what you want and don’t want.
A durable power of attorney for health care is a document in which you name the person to make medical decisions for you if you cannot make your own. You also express your wishes and desires about care. You can provide your values to help guide your agent. I had one client say that if she could still enjoy her favorite television show, she wanted to keep getting medical treatment.
The types of advance directives available to you are governed by state law and vary from state to state, so you should consult with a qualified attorney in your state.
2. Make a List of All Your Assets and Important Details
You worked hard for your assets and you don’t want your successor trustee or personal representative to go on a wild good chase looking for what you have. So put together a list so your estate representative knows what you have, and include important details. Here are some types of assets to list:
- Real Estate: Your home, any other real properties, and any land you own.
- Bank Accounts: Savings accounts, checking accounts, and certificates of deposit (CDs).
- Investment Accounts: Stocks, bonds, mutual funds, and other investment portfolios.
- Retirement Accounts: Such as 401(k)s, IRAs (Individual Retirement Accounts), and pension plans. Designate beneficiaries on these accounts, as they often pass outside of probate.
- Insurance Policies: Life insurance, long-term care insurance, and any other insurance policies.
- Personal Property: Valuable items such as jewelry, art, antiques, collectibles
- Vehicles: Cars, boats, trailers.
- Business Interests: Ownership stakes in any businesses or partnerships.
- Digital Assets: Includes online accounts, digital files, and cryptocurrencies.
- Miscellaneous Assets: Health Savings Accounts, subscriber accounts, etc.
3. Get Your Estate Plan in Place and Keep it Secure
It is important to have a good estate plan in place. There are many books and articles on this topic, and I recommend that you see a qualified attorney to get a solid plan that incorporates your values. Once you have the plan in place, be sure to keep it secure. In most cases, you’ll want to let the people who will handle your estate know where they can find the documents.
4. Write Down Your Final Wishes
The loss of a loved one is painful. Even if you know it is coming after an illness, it hits you so hard. Then you have to start making decisions about funeral, burial or cremation, all while you are in deep pain. It really helps your loved ones if you let them know what you want. The more details the better.
5. Write a Letter to Your Loved Ones
The things you say at the end of your life can have incredible power. The people left behind can remember them and hold on to them throughout their lives. Take the time to think about what is in your heart. It might be a simple letter saying how much you love someone or how proud you are of them. You could talk about what you would like them to do with their inheritance, knowing that this is not legally binding. But it does carry much power.
You can even create a detailed statement of purpose outlining the purpose of your estate plan, and the values you’d like to see upheld. One adult child, when seeing the letter along with the trust documents said, “This trust is a gift of love.”
Indeed, I like to think of a well-crafted trust as a gift of love, and another gift is to organize all the supporting information. That is why I wrote my book, “My Last Gift: An Essential End-of-Life Planner” published by Zeitgeist, an imprint of Penguin Random House. This book provides a place to put information about all five of the steps above and provides prompts so you know what to include.