The COVID-19 outbreak has upended life as we know it. And while it’s natural to feel uncomfortable about documenting your inheritance wishes, the pandemic underscores the importance of estate planning. Conditions beyond our control—coronavirus or otherwise—can cause our health to change almost instantly.
Not only is estate planning essential to ensure your estate is handled as you wish once you pass away, but current events also highlight the importance of making sure your health and finances are taken care of should you become incapacitated.
If you already have an estate plan, make sure you review it regularly so that you can feel assured it continues to meet your wishes. If you haven’t looked at it for a while, now is an ideal time to do so. And if you have yet to begin an estate plan, then consider getting started. Don’t let social-distancing rules cause you to delay. Your financial advisor or estate planning attorney can schedule a videoconference or phone meeting that is as effective as meeting them in person.
Estate Planning Documents You May Need
Your estate plan should help make sure your wishes are carried out while you are alive and after your death. Here are documents you may need:
Will and/or trust: You will want to set up a will and/or trust to make sure your intentions are followed. Consult with an estate planning attorney in your state to determine what is best for you.
Guardianship designations: If your will or trust doesn’t include guardianship designations, then talk to your attorney about naming a guardian (both primary and backup) for your minor children.
Advance medical directive: This document, sometimes called a living will, sets the end-of-life medical decisions you want made on your behalf in the event you cannot communicate those wishes. It can cover a range of directives, such as whether you want life support or palliative care to manage pain.
DNR and DNI orders: Do-not-resuscitate orders tell your doctor not to resuscitate you if your heart stops beating. A do-not-intubate order tells your doctor that you do not want a breathing tube to be placed.
Durable powers of attorney: People commonly establish durable powers of attorney for their health care and finances. Doing so can give you peace of mind that someone you trust will be making decisions on your behalf should you become unable to make them yourself.
If you already have these documents in place, make sure to review them for any necessary updates. For example, you may want to change the person you grant power of attorney to during the COVID-19 pandemic if they are immunocompromised and thus at high risk if they contract the virus.
Beneficiary Designations
Take time to establish or review your beneficiary designations and make any updates to reflect changes in your life or the lives of your beneficiaries.
This step includes reviewing bank accounts, retirement plans, life insurance policies, and any other accounts where you have named people who will receive the account’s holdings after your pass.
Talk to a Professional
Like many people, estate planning may be one of those unpleasant subjects you’ll think about “tomorrow.” We get that. But we also think that the coronavirus pandemic shows how quickly our lives can change. Although none of us can predict such changes, we can take steps to be proactive, and estate planning is one of those steps.
Talk to your estate planning attorney to get your wishes documented, and consider working with a financial advisor. A financial advisor who provides comprehensive financial planning will incorporate your legacy wishes as part of your overall strategy. We do this as a matter of course with our clients and will partner with their attorney to help make sure the details are carried out.
This material was prepared by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax or legal advice.