If you have found this blog post because the title applies to you, first off, let us say how sorry we are. Though we handle estate planning matters daily and care deeply about our clients, we can only imagine how tough it is to process the news that your time is limited.
Given the whirlwind of emotions you are experiencing, it can be challenging to think about practical matters. However, creating an estate plan can help you make certain your loved ones are cared for, providing you and them with peace of mind during a most difficult time. With practicality and your comfort in mind, we have put together a guide to help you and your family navigate this process.
Breathe deeply and collect your thoughts.
Give yourself a moment to process your medical diagnosis. Estate planning is about making your wishes known so that the people you care about are looked after in your absence.
Also, think about what matters most to you. Who do you want to take care of? What personal belongings or assets are important to pass on?
Think about the legacy you want to leave behind. Your legacy reflects your values and the impact you’ve had on the lives of others. You can communicate your legacy in various ways — through the bequests you make, including to charitable organizations — and the lessons you have imparted throughout your lifetime, not just in death.
Jot down these thoughts, and then call a Seattle estate planning lawyer. Your list is just a jumping-off point for you and them.
Talk to your loved ones.
Open communication with your family and close friends is more important than ever. Let them know your intentions and listen to their thoughts and concerns. Doing so can help avoid misunderstandings later on and enable the process to run smoother for everyone involved.
Create a comprehensive estate plan, beginning by drafting your will (aka last will and testament).
The most common of the estate planning documents is a last will and testament, which is usually referred to as simply a will. Your will is a legal instrument in which you provide detailed instructions about how you want your assets to be distributed after you pass away. It’s a way to voice where you want your assets to go and create a plan for them to go to the people you intend.
When you meet with a Seattle estate planning lawyer, they will ask you to provide a list of your debts and assets. Your assets include everything from real property, vehicles, bank accounts, and investments to personal items like jewelry, family heirlooms, or collections.
Next, you will have to let your estate planning lawyer know who you would like to be the beneficiaries of your will. These are your heirs, the people who will inherit your assets. You can be as specific or as general as you want about who gets what in your will.
You must also choose an executor or co-executors to carry out the instructions in your will, guardians for minor children or adults needing supervision, and trustees to manage any trusts you create.
When deciding who should assume each role, choose someone responsible and trustworthy. Inform them beforehand so they have a say in whether they feel they are up to or would want to take on the position you are depending on them to assume following your death.
Consider setting up a revocable trust (living trust).
However you refer to it, a revocable trust or living trust is an effective estate planning tool. For one thing, it allows your assets to pass directly to your beneficiaries without becoming subject to probate. In some instances, probate can be a lengthy and expensive process.
With a living trust, you can likewise specify how your assets should be managed if you become incapacitated. If you change your mind before then, you can change the trust’s terms as you desire.
Draft a health care directive (advance care directive).
Health care directives, frequently known as advance directives, include both a living will and a medical power of attorney. They facilitate understanding of your wishes and allow those in charge of your care to make decisions on your behalf should you be unable to make decisions for yourself.
A living will and a medical power attorney are not the same thing. Livings wills are documents that outline your wishes for medical treatment, including specifying what kind of life-sustaining treatments you do or do not want. On the other hand, a medical power of attorney designates a person of your choosing actually to make medical decisions.
Include a durable power of attorney (financial power of attorney).
A durable power of attorney allows you to pick someone to manage your financial affairs if you cannot. This person can handle tasks like paying bills, managing investments, and other financial matters.
Review your beneficiaries on other payable on death (POD) accounts.
Check the beneficiaries you have listed on your life insurance policies (personal and work), retirement accounts, or any other accounts that require beneficiary designations. Be sure they align with your current wishes, and update them if necessary.
People often become confused about accounts with beneficiaries; they believe, erroneously, that what their will says will trump beneficiary designations. This is untrue.
Payable-on-death (POD) accounts are exactly that — they pay out on death, meaning they pass outside the will and are not subject to probate. So, if while you were married, you named your spouse as a beneficiary on your 401k) or life insurance policy but, since your divorce, would no longer wish to have them as your beneficiary, you need to change those designations to reflect your current wishes.
Gather any other important documents for safekeeping.
Gather all of your important documents and keep them in a safe place. This can include your estate planning and trust documents, life insurance policies, investment account statements, bank statements, deeds to property, and vehicle titles.
You should similarly compile a list of digital accounts with your login information and passwords. This includes social media accounts you would like removed or memorialized after your passing.
Let your executor or a trusted family member know where these documents are located. Protecting your documents for your loved ones won’t do anyone any good if they don’t know where to find them.
Note that a safe deposit box is not a good choice for storing estate planning documents. You are much better off keeping them in a fireproof box or fireproof envelope and letting your personal representative know where they are. If you choose to store your documents in a personal safe, also make sure your representative has the combination or code.
Think about writing personal letters to your loved ones.
Legal documents, as thorough as they are, likely will not cover your innermost feelings. For this reason, think about writing letters to your family and friends to let them know how much they mean to you. The gesture can comfort your loved ones and help clarify your decision-making.
Make decisions about the disposition of your remains.
Thinking about your own funeral or memorial service can be difficult. But it can also be a way to lessen the burden on your loved ones, minimize conflict, and avoid confusion about your wishes so they will be honored in the way you envision.
You can specify your wishes for the type of service you would like, whether it’s a traditional funeral, a celebration of life, or something else entirely. You can similarly choose what will happen to your remains, as there are many options to choose from now.
Take care of yourself and lean on others for support.
Despite the necessary focus on getting your estate planning in order, don’t forget to take care of yourself. Spend time with loved ones and friends, participate in your favorite activities, and focus on what brings you joy and peace.
If you find it helpful, reach out to support groups, counselors, or spiritual advisors. Sharing your experience with others who understand, including an estate planning team committed to providing solutions, can provide comfort as well as strength during an unequivocally difficult and complicated time.
Find an experienced Seattle estate planning attorney to help create an estate plan in the face of a terminal illness.
Facing the end of life is never easy, but taking these steps can help bring some peace of mind. By creating an estate plan, you are seeing to it that your loved ones are cared for and your wishes are honored. Remember, your reasons for doing this are out of love and care for the people who matter most to you.
At Elise Buie Family Law, one of our compassionate team of estate planning attorneys can guide you through your legal affairs so that you have everything you want in order. We also have an extensive network of financial professionals, from financial advisors to tax professionals, to help inform your decisions. Call our Seattle office today or schedule a consultation.
