Peace of Mind with Estate Planning

When you hear the phrase “estate planning,” what do you picture?

Some may think of a large mansion on hundreds of acres of land being passed down through generations.

Others may imagine the reading of the Will of a wealthy great aunt.

While this is sometimes the case, the truth is estate planning is not just for the rich, it’s for everyone.

On this month’s podcast, Headlines and Fine Print, Dion Williams, our President & CEO, gives insight into how estate planning can benefit you, as well as the documents and tools at your disposal to create a sound plan and ensure your intentions and designations are in alignment.

Beneficiary Designations

Life insurance policies and retirement plans can pass assets to beneficiaries outside of your Will. Therefore, it is important to make sure that your beneficiary designations are current.

“Things happen in life. Sometimes, there’s divorce, remarriage, death of a beneficiary or some other life change,” Dion said. “It’s very important that as those life changes happen, you make sure those designations are set up in a way that assets pass according to your wishes.”

Other accounts can have beneficiary designations as well, such as checking, savings, money market and certificates. Without designations, the assets will be transferred to your estate which can cause time delays and frustration during an already difficult time.

“Grief and emotions are enough on their own without the complications of navigating the estate of the deceased,” Dion said. “Beneficiary designations are an excellent tool to ensure your wishes are carried out and alleviate the stress on the survivors.”

Don’t Forget About Your Kids

Circling back to the myth that estate planning is just for the wealthy, estate planning covers more than financial matters. It also covers the care and guardianship of children.

“When we say estate planning is not just for the rich, this is really the best example,” Dion said. “Whether you have financial assets or not, your Will can clearly communicate your wishes for minor children in the event of your death.”

Health Care Directives and Documents

Here Williams discussed four important documents that help with your wishes for yourself.

1. Living Will. In the event that you are unable to communicate your wishes for medical care, a Living Will conveys them for you. These can make a difficult time less stressful as your wishes are clearly stated.
2. Health Care Power of Attorney. This document designates someone to make decisions for you regarding your health care. Make sure to have a conversation with the designated person so he or she is aware of the designation and your wishes.
3. Do Not Resuscitate (DNR). A DNR states that you do not want to be resuscitated if your heart stops.
4. Financial Power of Attorney. Unlike the other documents, this one is not a health care directive but an important part of estate planning. A Financial POA designates someone to handle your financial matters on your behalf. “The POA can be structured in different ways; thus, this is an example of the value an attorney brings to the situation,” Dion said. “A POA without parameters could allow a bad actor to take advantage of you. In many cases, the POA regarding financial matters is triggered by an event and may even require a doctor or doctors to sign-off on your fitness to handle financial matters, or lack thereof, before the POA allows the designated party to act on your behalf.”

Your attorney can offer more information and guidance on each of these documents. It is very important that health care directives and legal documents are on file with your health care providers, attorney and financial institutions, if pertaining to finances.

Dion said that it is best if these documents are easily obtainable. That way “if something happens, you’re not scrambling to come up with the documents; you have everything in place, and the plan can take action according to your intentions.”

Here at PACU, we have a wealth of knowledge and resources on staff that can provide information on a variety of financial topics. Our Investment Solutions team, through CUSO Financial Services, L.P., offers great support for estate planning and many other financial planning pathways.