Many people think that “estate planning” is only for those who are blessed with substantial wealth or property. The reality is that everyone — regardless of age or income level — needs to take a few simple steps to ensure that their wishes are carried out after their death. According to Elizabeth Arnold in her comprehensive guide Creating the Good Will, “Estate planning allows you to make choices for yourself, rather than letting the state decide for you. The will itself is the legal centerpiece of any estate plan. It documents your wishes for the distribution of assets,” regardless of the value of those assets.
Despite the importance of estate planning, and the relative ease and inexpensiveness of drawing up a basic will, it is estimated that seven out of ten Americans today have no will, and of the 30 percent who do, most don’t keep the document up-to-date. When you die without a will, your estate (essentially everything you own or co-own) is labeled “intestate,” which means the state steps in and decides who gets what, leading to a long, costly (financially and emotionally), and often complicated process for your family to manage.
Arnold’s approach takes into account the intangibles that are so important in developing a will that reflects your wishes. She suggests that individuals begin by considering how best to perpetuate their (and their family’s) values and let their choices be guided by what is most important to them — their legacy. She stresses the importance of the “human laws of distribution. Once these laws are taken into account, making choices that satisfy the legal and financial end of things becomes a fairly uncomplicated task.” Here are some of the most important things to think about:
Consider Your Values. Passing on your values, beliefs and guiding principles is the most important thing you can do for yourself and your loved ones.
Face Family Dynamics. Take an honest look at your family and consider their relationships, values, and differing needs and expectations.
Start with the Small Stuff. The heirlooms, family photos and mementoes are often the most “emotionally charged” possessions, and their distribution will lay the groundwork for decisions about the “big stuff” — your home, retirement accounts, and other financial assets.
Build a Team You Can Trust, beginning with an attorney or trusted financial advisor, and choosing who you want to make financial and healthcare decisions for you should you become incapacitated.
Decide Who Gets What, recognizing that “fair” is not always “equal.”
Communicate Your Plan with Your Loved Ones so that issues can be identified while there is still time to address them. While your own family circumstances will dictate how much detail to disclose, in most cases an honest, open discussion now will reduce the chances for misunderstanding and conflict later. At the very least, make sure key family members know where to locate needed documents, and your wishes concerning advanced healthcare or financial directives.
While there are many reasons people put off taking the steps necessary to write a will, the real barriers are often emotional ones. The American Bar Association convened a committee several years ago to address the psychological and emotional issues of estate planning. They found that often the task of tying up one’s affairs in a legal document is fraught with emotional issues, causing people to assess their parenting skills, evaluate their relationships, and reassess their life goals. However, the reward for writing a will is profound: It means your wishes and choices will be carried out, and you will spare your family or loved ones the heartache and expense of sorting out your affairs (or worse, having the courts sort them out).
How to get started? Call your attorney or financial advisor and make an appointment. If you already have a will, but you haven’t evaluated it in more than 3-4 years, it’s a good idea to review it with a professional to make sure it reflects your current values, financial and family circumstances.
Everyone wants to feel as if they’ve left their mark on the world — that because they lived, someone’s life is happier, a child’s future is brighter, or a place of beauty is preserved for others to enjoy, long after their lifetime.
If you’re looking for an easy way to make a lasting difference, consider making a deferred or planned gift. Simply adding a bequest to Community Memorial Foundation in your will is the easiest and simplest way to do this. It doesn’t affect your assets during your lifetime, and because of the tax savings, the impact on your children’s inheritance can be minimal.
A gift of any size qualifies, and you can choose how you want your gift to be used, whether for Women’s Health, Cancer Care, health care for the uninsured, or another Community Memorial program. You can leave a specific amount, or a percentage of the assets left after other distributions are made. Or create a permanent endowment to honor the memory of your family or a loved one. Your gift will make you a member of our Evergreen Society, along with other generous individuals who have remembered the Foundation in their wills. And you’ll have the satisfaction of knowing that because of you, Community Memorial Hospital will be here to meet changing health care needs well into the future, enriching lives for generations to come.
Community Memorial Foundation promotes and enhances the health of all individuals in our community through the development and management of resources in collaboration with the mission of Community Memorial Hospital.
The articles in LifeTimes are for information only. Talk to your tax, financial or legal advisor to make decisions best for your own situation.
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