The Most Important Step

As an experienced firm that specializes in estate planning, Salter Law LLC is committed to building relationships with our clients, understanding your situations and goals, and providing you with the tools and strategies needed to prepare for whatever your future may hold. These tools include wills, trusts, health care directives, and more.

We also want to emphasize the importance of communicating with your loved ones about these tools and plans once they are in place.

Not only is it vitally important for you to have estate-planning documents like these in place, it is equally important – critical, in fact – that you talk to your family about your estate plan and wishes - this is the most important step.

Your children and loved ones may be hesitant to ask questions for fear of appearing greedy, insensitive, or prying. Yet they may need this information to do proper estate planning of their own and to administer your estate properly when the time comes.

So what topics should you cover? We recommend answering these questions for your loved ones involved in your estate plan:

1) Have you created a will or trust? If so:

• Explain the basics of how your estate plan will work. Describe how either your will or trust passes down your assets, and if a trust, whether it is revocable vs irrevocable. Let them know if you are in estate tax territory so they better understand your planning strategy and how it avoids estate tax. If you chose a will as your estate planning vehicle, inform them that a probate will need to be opened at the time of death.

• Describe the duties that your Personal Representative (for a will plan) or your Successor Trustee (for a trust plan) will have to perform for your estate administration?

• Who stands to inherit assets? Knowing this may assist your loved ones in planning for their own estates - especially if they will end up in estate tax territory.

2) Have you made your health care and/or end-of-life wishes clear through a Health Care Directive (HCD)? If so:

• Tell your loved ones who you appointed as your Health Care Agent.

• Explain that the Agent makes healthcare decisions on your behalf, in consultation with your doctors, under two circumstances: a) in the event of your incapacity, or b) in the event of your terminal illness, the Agent will request the life-sustaining treatments you described in your Health Care Directive in the case of emergencies or end-of-life circumstances.

• Provide more details on the choices you laid out in your Health Care Directive. How exactly do you want to be cared for in the event of incapacity or in an end-of-life situation. Knowing your thinking behind those choices would help your Health Care Agent better act on your stated wishes as they weigh the advice of your doctors or other medical personnel.

• Inform all who may be involved in your healthcare emergency to prevent future disagreement on how your Agent should act on your behalf.

3) Have you completed a Power of Attorney? If so:

• Tell your loved ones who you appointed as your Power of Attorney Agent.

• Explain that the Agent makes financial decisions on your behalf in the event of your incapacity. The powers granted to the Agent would end at the time of your death.

• Explain the types of financial transactions the Agent can or cannot perform, if necessary. Specific powers can be granted on the Power of Attorney form. Also explain whether the powers are “durable” or “springing” - your estate planning attorney can assist you in explaining these terms.

• Explain your general financial wishes to your Agent so they better understand how to act on your behalf. You may also want to share a little about your current financial situation: a) Is your house paid for or are you carrying a mortgage that will need to be covered if you pass away suddenly? b) What about your automobile? c) Are there other accounts that may need to be managed if you become incapacitated or pass away suddenly?

4) Even if your loved ones understand that you have those documents in place, do they know where your estate planning documents can be found?

• If your estate planning documents are on your computer or in the cloud, let your loved ones know where you store your username or password so they can access them, when needed.

• Does your Personal Representative or Successor Trustee know how to access your assets? Do they know which ones they’ll have to manage? Create a list of where each asset is currently located and include: bank name(s) and location(s), financial planning or investment firm name(s) and phone number(s), account numbers, etc. Keep this information up-to-date.

• Store your asset information along with your estate planning documents in a safe, secure, and accessible location (to those who will need it). If you have a safety deposit box, be sure to assign a loved one as co-owner or renter so they can access it and know where the key is located.

At Salter Law LLC, our estate planning attorney, David P. Salter, understands how difficult it is to begin a conversation of this nature and can help you find the best ways to begin this conversation with your loved ones. Our 25 years of experience in estate planning tells us that families who are able and willing to open up in this manner draw closer together and feel a sense of relief afterwards.

Disclaimer: The above article should not be construed as legal advice for your situation. Please contact us to discuss the specifics of your case in order to determine which aspects of this article pertain to your life circumstances and estate planning needs.