The following is a quick six-question quiz about YOUR estate planning situation. Think you have it covered? Take this quiz and find out.
- Do you have a will, AND if so, has it been updated within the past three years? Yes or No
- If you have one or more minor children, have you LEGALLY made arrangements for their guardianship, welfare, and care if something happens to you? Yes No (Do not answer yes if you are simply counting on your spouse to take over. Read below for why.)
- If you have a pet, have you made care and financial arrangements for it if something happens to you? Yes No
- Medical directives (Healthcare Power of Attorney) and living wills are important documents in a comprehensive estate plan. Do you have BOTH? Yes No
- Do your loved ones have all the information they would need to access your investments, insurance policies, and savings if they need to do so? Yes No
- Do your loved ones know your wishes regarding your funeral services, burial, etc.? Yes No
Scoring:
If you answered YES to all six questions, congratulations! You are an estate planning rock star who genuinely wants to protect your assets and loved ones. You recognize the importance of having your affairs in order so your loved ones aren’t burdened with what could be a stressful and expensive mess otherwise.
If you answered NO to ALL of the questions, sadly, that’s not good, but you’re in good company. About 50% of the adults in the US don’t have a will and probably still need to address the other estate planning needs.
If you said yes to some and no to others, it depends on which got a YES and which got a NO to evaluate your situation.
A quick overview of the consequences of a NO on each question follows:
#1 Not having a will means probate court for your loved ones. It can be a complicated situation, cost money, delay inheritances, and because it is within the court system, it becomes a public record for anyone to see.
#2 No means that if, for example, both parents are killed simultaneously (auto accident, for example) and legal guardianship has not been arranged, the court will step in and make those decisions. And they may NOT make the same choices you would. You don’t want that for your kids, do you?
#3 No on this one means your furry best friend may likely end up in a shelter. If it is older or not especially adoptable, chances are it may be euthanized- because you failed to make arrangements in advance.
#4 No means, if you are in a coma or your situation is medically dire, the health care providers won’t know what you would have wanted. A healthcare power of attorney allows an individual to designate another person to make medical decisions when they cannot make decisions for themselves. A Living Will documents your wishes if you are in a terminal condition or permanently unconscious state.
#5 A no to this one means you’ve put your loved ones into a problematic situation. They will be unable to get the estate settled until they can track everything down. It could take a long time and be very complicated and stressful for them. I don’t think that is what you want – is it?
#6 I hear about this all the time. A spouse dies, a parent dies, and not only is there nothing in writing in terms of the individual’s wishes, but maybe the topic was never discussed. Burial versus cremation. Service or no service? There are so many decisions to be made … why leave your loved ones guessing what you would have wanted?
The purpose of this quiz was not to make you feel guilty or bad, though, if you answered no to everything, I suspect it might have. I’m sure you have your reasons why, but I’ll share two things with you. The first is that once my clients have worked with me to create their customized plan, sometimes with a trust, sometimes not, they ALL experience the most wonderful feeling of relief. They know they’ve done everything they can to protect their assets and loved ones. The second thing is that it’s not the hassle or huge time commitment you might anticipate. Call me, and we can have a quick discussion about your situation and how quickly we can put your affairs in order. The peace of mind is truly priceless. You can reach me at 513-399-7526 or go online to www.davidlefton.com for more information. You’ll be glad you did.