Oregon Estate + Business Planning Blog

Do I need estate planning if I don't have an "estate"?

 

 

Should someone who doesn't have "an estate" really worry about estate planning?

The answer is YES.

I really want to dispel the myth that estate planning is about taking care of your stuff.

Estate planning is about taking care of yourself and your family, and yes, your stuff, if you die or are incapacitated and unable to make decisions for yourself.

You may feel like you don’t have an estate, but if you own any personal belongings, bank accounts, or retirement accounts, life insurance, you do own property that needs planning to address.

My mother died when I was 2 years old, and she didn’t have an estate so she didn’t do any planning. That left me in a precarious position, because she hadn’t named any guardians, and she didn’t have a plan created for the large settlement her estate was awarded due to the car accident she died in.

If you’re a parent, you’re planning for the worst-case scenario, and that’s basically dying in an accident while your kids are still young. So you need to name guardians and name someone who will be in charge of managing money you leave behind for your kids.

But also, you’ve got to make a plan for who is going to make decisions for you if you’re incapacitated. You’re about 4 times likelier to be incapacitated than you are to die early, and who will make healthcare, financial, and parenting decisions for you if that happens? If you don’t have a plan in place, your family will have to go to court to get someone appointed, and that person will have to report to the court for the rest of your life.

So the answer is yes, everyone over the age of 18 needs some estate planning.

If you’re a parent, go to my website right now and read my FREE REPORT, called The 9 Planning Mistakes Parents Make. Go to this link and look on the left column for that link.

If YOU have a legal question about estate or business planning that you’d like me to make a video about, you can message me on my Facebook page. It’s facebook.com/aistonlaw.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family and business?  Give our office a call at (503) 235-5150 or email [email protected] to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can! Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Legal Planning Attorney for Estates + Businesses in the Portland, Oregon area. She helps people to prepare for a lifetime of security, prosperity, and guidance. If you would like to receive her free reports, please visit http://candiceaistonlaw.com/. Follow her Facebook page for daily planning tips: https://www.facebook.com/aistonlaw/.

[Update in Oregon Law] Multnomah County, Oregon Non-Professional Fiduciary Education Program

As of February 1, 2015, all non-professional guardians, conservators, trustees and personal representatives appointed by the Multnomah County Circuit Court must, within 15 days of their appointment date, register for a class that meets the curriculum requirements of the Multnomah County Non-Professional Fiduciary Education & Training Program, completing the class within 60 days of their appointment date. The cost of the course may be treated as a cost of administration of the proceeding. (SLR 9.076). 

Special Advocates for Vulnerable Oregonians (SAVO) offers classes that meet the criteria. There is a class for each role, and each class is one hour long and costs $100. Fiduciaries who cannot be at the class in person may take it remotely.

The purpose of this new requirement is to cut down on errors made by fiduciaries in court proceedings. Most fiduciaries that make errors do so unintentionally, but the errors still end up costing the protected person, beneficiaries, and fiduciaries financially and emotionally. Education can help fiduciaries to carry out their duties properly so that these situations are avoided.

Legal Rights v. Practical Issues (or, When Legal Rights Don't Matter)

I want to tell you a secret.

Each and every one of you has certain legal rights, but many of them don't matter. I first realized this when I watched the movie Liar, Liar, starring Jim Carrey. There's a scene where a towing company scratches Jim Carrey's car, and the towing man asks him what he's going to do about it. Jim Carrey says, "Nothing! Because if I take it to small claims court, it will just drain 8 hours out of my life and you probably won't show up and even if I got the judgment you'd just stiff me anyway; so what I am going to do is piss and moan like an impotent jerk, and then bend over and take it up the tailpipe!"

He has a legal right to be free from vandalism to his car, but he's not going to do anything to secure that legal right, so it doesn't really matter. Of course, in this case it makes sense that he doesn't pursue anything, but there are other situations where it makes all the sense in the world to pursue your legal rights. When the cost of losing a legal right outweighs the cost to secure a legal right, it makes sense to pursue that security.

Here are three ways this relates to estate planning:

1.  You may not have immediate access to money and assets if your spouse dies.

I thought about this when I read an article about a woman whose husband died, and the mortgage company threatened to foreclose on her home, repeatedly harrassing her for payment that she didn't have the immediate ability to access. It reminded me of how I hear people say things like, "If my spouse died, I'd just get everything, right?" and, "We have life insurance, so we'll be OK." Maybe, maybe not. Neither of those things are set in stone. It could be that you have to go through a court process to gain access to your spouse's property. It could be that you have to give up some property to your spouse's kids (from another relationship). It could be that the insurance company takes a while to cut you a check, so you don't have enough money to pay the bills for an extended period of time. If having immediate access to money and assets is a concern for you, see a lawyer who can show you what things will look like for you and your spouse if one of you dies.

2.  The guardian you want may not be able to serve.

I tell the story all the time about how after my mother died, there were several family members that wanted to adopt me, but they couldn't afford to fly over to Hawaii and pay lawyers to make it happen. If you don't name guardians and make a plan to pay the guardians for the care of your children, it might not be the person you'd choose who your kids end up with. Sure, each family member has a legal right to petition, but not all of them will have the resources to make it happen. 

3.  Your kids may inherit nothing from you.

You have a legal right to leave your property and money to anyone you want, and yet, I hear about people accidentally disinherting their kids all the time. If you leave everything to your spouse, unprotected, there is no guarantee that your children will inherit anything. Most parents want to make sure something is left behind for their kids, yet the unprotected all-to-my-spouse plan is the one that most people go with when they create a will or trust. 

These are just a few examples of situations where practical issues and legal rights collide. The moral of these stories? Get thee to an estate planning lawyer who can look out for these issues and advise you on how to proceed in a way that best protects your family and accomplishes your goals.

To your family's health & prosperity,

Candice N. Aiston

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

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Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

Estate Planning is about Parenting with Purpose.

I had a major a-ha moment this week when I watched a video about estate planning at a web show called The Intentional Parent. It hit me that this is what estate planning is all about: Intentional Parenting, or Parenting with Purpose. 

I often try to pin down what my clients all have in common, and while they have varying incomes, careers, lifestyles, and values, what they DO have in common is that they are all seeking to parent their kids with purpose. The purpose is not always the same. I have clients whose kids go to the most academically recognized schools in Oregon and I have clients whose kids go to schools that are centered around the environment, religion, student democracy, and many other variations of those. I have clients whose kids go to public school and clients whose kids are homeschooled. Of course, parenting isn't all about what school you choose, but I bring up school choice to show you that while values may vary, all of my clients put a lot of thought and energy into their kids' education and upbringing. They're not just plowing through life hoping for the best. They're making decisions with purpose and intention.

Estate Planning is for parents who are parenting with intention and who want to protect the purpose that they have for their family. What will happen to all of the thought you put into parenting if something happens to you? Consider the following scenarios:

• You are injured and are out of work for many months;
• You are incapacitated and can't make health or financial decisions for yourself;
• You and your child are both incapaciated and there is no one to make decisions;
• You die prematurely without a plan in place.

What will happen to your purpose for your family in each of these scenarios? Who will take care of your kids? Who will make health decisions for you and your kids? Who will pay the bills? Who will ensure your kids complete their education? Who will pay for your kids upbringing? How much money will you have to pay to go through the various court processes if any of these things happen?

There are a lot of people who have the attitude of, "If I die, I die, but I'm pretty sure I'm not going to die." This is not the attitude of someone who parents with purpose. Someone who parents with purpose sees what they have in their power to do, and does it. You may not be able to ensure that the decisions that you make for your family will lead to a certain outcome, but you can ensure that if something bad happens to you, that your family has the best chance possible to continue life as you wanted them to live it.

It just so happens that right after Christmas comes the New Year, and that's the time to take action and make changes. If you haven't named guardians or prepared a will or trust (or if your current plan is more than a couple of years old), it's time to make sure that your precious family is protected. 

Happy Holidays to you and yours!

To your family's health & prosperity,

Candice N. Aiston

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

The 9 Planning Mistakes Parents Make

ATTENTION PARENTS: Did you know that almost 75% of you don't have any estate planning in place?  Even more shocking is that for the 25% or so that do, you have likely made at least one of nine common mistakes that parents make when doing their estate planning.

As Portland's Estate Planning Attorney for Families, I see and hear the stories of planning mistakes all day long. Here are a few:

• The parents who didn't name guardians, and whose kids stayed in foster care for 18 months while the family fought over guardianship;
• The mother who didn't have a healthcare directive, and was kept braindead on life support for 13 years until her feeding tube was ultimately removed, after her family fought legal battles and spent thousands of dollars over whether she would have wanted to live or die;
• The mother who named her sister and brother-in-law as joint guardians, only to have the kids be awarded to the brother-in-law in the later divorce;
• The stay-at-home mom whose spouse died without any life insurance, leaving her with no way to support herself and her children and eventually having the family home go into foreclosure while she scrambled to find a job;
• The family who had to go through a lengthy and expensive court process to be able to manage the father's affairs when he became incapacitated;
• The stepparent who was really more like the biological parent who lost contact with her stepchildren when her spouse died;
• The mother who accidentally disinherited her own children;

...and so many more.

THAT'S WHY I CREATED MY FREE REPORT, "The 9 Planning Mistakes Parents Make." I want YOU to know what questions to raise with your attorney when you're doing your planning. Your family is worth it.

To receive the FREE REPORT, please CLICK HERE!

To your family's health & prosperity,

Candice N. Aiston

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

Back to School: 4 Things You Must Know about Emergency Cards.

It is already August, and that means parents are thinking about getting ready for the kids to go back to school.  There are a million things to do: shop for new school clothes and supplies, attend doctor and dentist appointments, get haircuts, organize bedrooms and study areas, and get used to waking up early again.  There is one more task that many parents will do before September: update or fill out new Emergency Contact cards for your kids' schools.

Have you ever thought about whether these cards will even be effective if they're needed?  Here's what you need to know:

1.  You must choose people who will be able to pick up your child within 20-30 minutes.

When you choose people to list on the Emergency Card, make sure that each one could pick up your child within 20-30 minutes.  If the person works, make sure that he or she will be able to leave if need be.  If the person stays at home with children, make sure that there will be transportation available.  If you are naming a relative that is older (such as a grandparent), make sure that he or she is physically able to get to your child.  Be sure to name at least three choices, in case someone is out of town or cannot be reached.  Taking this kind of care to name these contacts will ensure that everything goes smoothly if there is an emergency.

2.  You must choose people who will have legally documented authority to keep your kids.

At the same time that you are naming Emergency Contacts for your kids, you should also be taking steps to give these "short-term guardians" the legal authority to keep your kids if something happens to you.  The schools keep your Emergency Contact information on file, and they do contact the people on the list if there is an emergency, but the school cannot guarantee that the authorities will allow your child to stay with any of the people that you have listed.  Imagine a scneario where something happened to you and the Emergency COntact came to pick up your kids.  If something happens to a parent where they are incapacitated or die, the police would usually notify DHS that there are children that need to be accounted for.  DHS would find out from the school where the children are, and if the Emergency Contact does not have the legal authority to keep the kids, DHS will probably have no choice but to take the kids into foster custody until a court can sort things out.  You can prevent this scenario from happening, and very easily.  (See how at the end.) 

3.  You must have a long-term plan for your kids' care.

In addition to giving your Emergency Contact the short-term legal authority to keep your kids, you also need to sort out a long-term plan for the kids' care if something happens to you.  All the Emergency Contact card does is tell the school who to call if there is an emergency.  It does not lay out a plan for their care in any legal way if something happens to you.  If a day comes when the school does need to use your Emergency Contact card, you want to have everything worked out so that there are so glitches in your child's care.  (See how you can name guardians for free, below.)

4.  You must communicate your plan with everyone involved.

A plan is not a plan unless everybody involved knows what to do!  The Emergency Contacts should be in possession of their legal documentation, and they should know who to call (the long-term guardian) once they have been called upon.  The long-term guardian should know who the local Emergency Contacts are, so they can communicate with them, if need be.

If you are thinking, "Oh great, like I need more to add to my to-do list," well, worry no longer.  I have a gift for you to help you to get started on this important part of what hopefully will become a comprehensive estate plan.  I am giving away my Oregon KidsCare packet, which will help you to legally name short and long-term guardians (and so much more) for free.  CLICK HERE to receive the packet now.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

What Estate Planning Documents Do I Need?

I recently returned from a trip to Hawaii, where I visited my family and attended my brother's wedding.  My two kids left a week before me with my parents, and that gave me some time to think about whether my estate plan was up to date.  No, it was not.  My guardian designations were outdated, my trustee designations were no longer going to work for my situation, and the new revisions to the Oregon Inheritance Tax created a big problem for my estate.  Honestly, I am embarrassed to say that I thought, "My plane is not going to crash.  I don't plan on dying.  This can wait."  But after the couple of weeks I just had with a friend dying and with two friends winding up in the hospital, I quickly shook off that nonsense.  I needed to update my plan.  A lot had changed in my life since I last updated it.  

I decided to show you what things look like now. Here is a list of everything in my binder and what you need to include in your plan:

• KidsCare Plan:  Long-term guardian designations; short-term guardian designations; instructions to caregivers about emergency plan; instructions to guardian about long-term care of kids; wallet ID cards (TO RECEIVE YOUR FREE KIDS CARE PLAN, CLICK HERE);
• Overview: The "Cliff's Notes" of the trust;
• Trust Agreement: Outlines terms of trust during lifetime and how assets are to be distributed after death; names Trustees;
• Pour-Over Will: Names Personal Representative and "catches" and assets that may have been left out of the trust;
• Nominations: A quick reference to see who is involved in the plan;
• Personal Information: Your most recent personal and financial information sheet;
• Funding Instructions: Shows you how to title assets and is handy to refer to when you acquire assets in the future;
• Power of Attorney: Names an agent to act for you financially if you are incapacitated;
• Privacy Affidavit: The short and sweet version of what banks and other institutions need to know about your trust;
• Trust Assets: Includes your asset spreadsheet, confirmation of asset transfers, and any information about your assets that your trustee will need to know;
• HIPAA Release: Allows your trustees and representatives to gain access to your medical records without a court order, saving your family money if you are incapacitated;
• Advance Directive: Names a Healthcare Representative to make healthcare decisions for you and outlines your healthcare wishes;
• Memorial Instructions: Everything your family needs to know to prepare an obituary, notify friends and groups of your passing, and plan a memorial service;
• Property Agreements: Any agreements you have with people you co-own property with;
• Personal Property Memorandum: Gives away specific items to specific people;
• Other Documents: This can include a Letter of Instruction to your trustee and letters you or your lawyer writes to your fiduciaries;
• Trust ID Card: This is handy to carry in your wallet to remind you how your trust should be titled;
• CD of Documents: For ease in sending any documents to fiduciaries, banks or other institutions, or doctors;
• Family Treasures Conversation: A recorded message to your family so that you can say all the things you want to make sure you've said.

 Of course, you may need more than this if your estate will be subject to estate taxes, or if you need to incorporate asset protection or business succession into your plan.  The most important part of your plan is professional counsel.  An estate planning attorney will be able to guide you in the direction that is right for your family.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

FREE Oregon KidsCare Plan Packet: A Legal Plan for Your Family.

A friend of mine was recently put into a medically induced coma, after a routine surgery led to a seriously life-threatening infection.  It is looking good that she will recover, but the suddenness of the infection and the uncertainty of the outcome have really shaken our community.  One friend immediately asked about whether there was any estate planning in place, which made many people wonder about whether it was time to ge their own plans in place.

I decided to go ahead with a plan that I had come up with a few weeks earlier.

A couple of weeks ago, I was so sick with The Cold of Doom, that I could not get out of bed for five days.  My kids were extremely lucky that their dad was able to take time off to care for them, because I was seriously incapacitated.  During this time, I thought about you, Dear Readers.  What would your kids do if you were seriously incapacitated?  Do you have a plan in place for the care of your kids?

I have not given out my FREE Oregon KidsCare packet to the public since last December, but I am giving it out now, so that if you do not have a plan in place for the care of your kids if something happens to you, you can get the peace of mind you deserve NOW.  Do it before you go on that trip.  Don't wait another day!

The KidsCare Plan Packet helps you to:

-Legally name long-term guardians for your kids;

-Legally document short-term guardians so the kids don’t have to experience foster care;

-Exclude any unacceptable choices from being considered as guardian;

-Communicate with your guardian choices to let them know the plan;

-Inform caregivers who to call in an emergency; and

-Tell guardians exactly how you’d want your kids raised.

It’s my gift to you, and there’s no obligation attached.  Simply click on the link and follow the instructions.

This is the best first step to getting your plan in place!  Happy Summer!

To receive your FREE Oregon KidsCare Plan packet, CLICK HERE!

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

 

3 Things I Hope Elizabeth Edwards Incorporated into Her Estate Plan

As you probably already heard, Elizabeth Edwards passed away this past Tuesday after a long battle with breast cancer.  Her surviving children are 28, 12, and 10 years old.  (Her son, Wade, who died in 1996, would be 31.)

 She posted her last message on Facebook on December 6th:

 

"You all know that I have been sustained throughout my life by three saving graces - my family, my friends, and a faith in the power of resilience and hope.  These graces have carried me through difficult times and they have brought more joy to the good times than I ever could have imagined.  The days of our lives, for all of us, are numbered.  We know that.  And, yes, there are certainly times when we aren't able to muster as much stregnth and patience as we would like.  It's called being human.

 

"But I have found that in the simple act of living with hope, and in the daily effort to have a positive impact in the world, the days I do have are made all the more meaningful and precious.  And for that I am grateful.  It isn't possible to put into words the love and gratitude I feel to everyone who has and continues to support and inspire me every day.  To you I simply say: you know."

 

Elizabeth Edwards was an inspiring woman who faced struggles and tragedy with so much grace.  She faced the death of a child, infertility, cancer, very public infidelity by her husband, separation from her husband, and ultimately, an early death.  She always remained positive and gave those around her hope.

Of course, as an Estate Planning Attorney, whenever anyone dies, I think about his or her estate plan, and in thinking about Elizabeth Edwards, there are 3 things that I hope she has included in her estate plan.

1. I hope that Elizabeth has a KidsCare Plan.

When Elizabeth died, full custody automatically went to the children's father, John.  I still hope that both Elizabeth and John have a KidsCare Plan, because if something happens to John, Elizabeth would have wanted to have a say in who would care for the kids.  This is something that all parents need to discuss and get in place legally.  It is a mistake to assume that you and the other parent are on the same page with respect to guardians, and it is a mistake to assume that your kids would go to the person you would choose, without any legal documentation in place.

A KidsCare Plan names long-term guardians who would care for your kids if you died or were incapacitated for more than a few days; names short-term guardians who would care for your kids immediately so that they would not have to experience foster care; eliminates specific people from being considered for guardianship; communicates the entire plan with everyone involved so that as soon as there is an emergency, everyone knows what to do; outlines your emergency plan for caregivers; and documents matters of importance that your guardians should know.  My office is offering a free KidsCare Plan Packet this month for all parents in Oregon.  Click here to receive your copy of the KidsCare Plan.

2. I hope that Elizabeth has protected her children's inheritance.

Although Elizabeth planned to file for divorce from her husband, she had not yet met North Carolina's "one-year separation before filing" requirement, and so when she died, she was still legally married.  Without any planning in place (and with most plans that married couples set up), this would mean that all of her assets would go to her husband. There are a couple of problems with this arrangement.

The first problem is that an inheritance is not secured for the children.  Sure, chances are that John Edwards will spend the next several years supporting the children through school and college, but if he remarries and does not set up an estate plan that protects the kids' inheritance, chances are that when he dies, everything will go to the new spouse.  This is incredibly common.  Children are disinherited all the time because of remarriage.  Once John Edwards dies, the new spouse does not even have to be a wicked stepmother to disinherit the children.  All she has to do is nothing, and the kids are automatically disinherited.  (John still has time to plan to avoid this kind of situation, though.)

The second problem is that if there is not a plan in place, the combined estate of Elizabeth and John Edwards may lose out on estate tax saving opportunities that are available to the family right now.  By leaving everything to John, Elizabeth's estate misses out on the 2010 year of no estate taxes and fails to plan for a possible retroactive tax on 2010, and everything will be taxed at John's death.  (That's putting it simply.  What you need to know is that anybody who will die with more than $1 million in assets, including life insurance and retirement accounts, needs to see an attorney to talk about estate and tax planning.)  There may also be state estate and/or inheritance taxes that require planning.  (Oregon has an inheritance tax.)

3. I hope that Elizabeth has found a way to pass on her values to her kids.

I read that Elizabeth, in anticipation of her death and inspired by the movie, Terms of Endearment, decided to write a letter to kids.  I hope that she finished this letter, and I hope that the kids have a recording of her voice as well.  There is nothing more precious that you can leave behind for your kids than your guidance and insight into who you are as a person.

All of our clients have the opportunity to record a message for their kids, where they can discuss their most important values and tell their kids how much they mean to them and what they would want for them.  If a parent dies young, the recording serves as guidance, and if the parent lives a long life, the recording serves as a treasured window into a young parent's thoughts and dreams for their kids.

If Elizabeth has incorporated these 3 things into her plan, her kids will greatly benefit from that.

How about you?  Have you incorporated these things into your plan?  If you are ready to get started on creating a plan that will make things as easy as possible for your family, call my office at (503) 235-5150. 

To your family's health & prosperity,

 

Want to use this article in your newsletter or on your blog or
website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in
the Portland, Oregon area.  She helps loving parents to prepare
their families for a lifetime of security, prosperity, and
guidance.  If you would like to receive her free report, "The 9
Common Planning Mistakes Parents Make," please visit
http://candiceaistonlaw.com/.

5 Steps to Ensure Your Family Is Cared for If You Are Incapacitated or Seriously Injured

A few months ago, an acquaintance of mine was hit by a car while riding his bicycle.  Although this father of three young children did ultimately recover, he was incapacitated for 4 or 5 months.  In fact, his recovery is somewhat of a miracle, as doctors initially thought his brain damage was too severe for him to even emerge from the coma he was in. 

This kind of accident can happen to anyone, and if you have loved ones who count on you to care for them, it is essential that you get a plan in place that addresses incapacity.  "Incapacity" means that you are incapable of caring for your family, making financial decisions, and making health care decisions.

Here are 5 steps that you can take to ensure that your family is cared for if you are incapacited or seriously injured:

1. Get a Guardian Plan in place if you have children.

If you have children, it is absolutely necessary for you to get a Guardian Plan in place.  A Guardian Plan names long-term guardians who would care for your kids if you died or were incapacitated for more than a few days; names short-term guardians who would care for your kids immediately so that they would not have to experience foster care; eliminates specific people from being considered for guardianship; communicates the entire plan with everyone involved so that as soon as there is an emergency, everyone knows what to do; outlines your emergency plan for caregivers; and documents matters of importance that your guardians should know. You can purchase a Guardian Plan packet on my website. 

2. Create a Durable Power of Attorney document to enable your spouse or other agent to carry out your financial matters.

You may think that your spouse will automatically be able to deal with your finances and assets if you are incapacitated, but this may not be the case.  If your spouse does not have a Durable Power of Attorney, he or she may have to petition a court to declare you incapacitated and name him or her as your agent.  This can be very costly and very time-consuming, not to mention extremely stressful under such circumstances.  It is a good idea to work with a lawyer instead of using a form off the internet, because most free forms overlook many important areas of your financial life.  To illustrate, most free forms are 3 to 4 pages long, while most of the documents our firm prepares are around 30 pages long.

3.  Outline your health care wishes and name a health care representative.

Every time I talk about health care planning, I start by saying, "Remember Terri Schiavo?"  Terri Schiavo was the Florida woman whose parents and spouse fought for 13 years over her health care, because she had not executed a health care directive.  On each side were very strong beliefs.  The media, the various public interest groups, the Governor, and the Supreme Court all got involved.  This was a huge hullabaloo, but do not make the mistake of thinking that these things could not happen to you.  Do not make the assumption that your family knows your wishes.  Legally name a representative and outline your wishes.  It is a good idea to work with an attorney on this, because the laws on this are very state-specific.

4. Make sure that you have provided resources in the event of your incapacity.

If you are incapacitated, how will your family survive financially?  You have probably thought about life insurance, in case you die prematurely, but have you thought about incapacity as well?  Do an honest assessment of what your family's expenses are monthly.  Find out how much Social Security your family would be entitled to receive.  Find out how much your work disability insurance would pay.  If those payments are not adding up to what the bills would be, consider buying a private disability insurance policy.  It is also a really good idea to start a savings account that holds enough money to cover 6 months of expenses.  It can take a while to start receiving Social Security and Disability payments, and you do not want your family to fall behind on bills.

5. Communicate your plan with your family and everyone involved.

What is a plan if no one knows about it?  It is extremely important that you discuss your plan with your family and with anyone involved in your plan.  Everyone needs to know that  you have executed a plan to care for them, and what that plan is.

I hope that this information is helpful for you.  I truly believe the motto, "Expect the best; prepare for the worst."  I believe that we can live our happiest lives when we've considered the worst and done everything in our power to plan for it.

To your family's health & prosperity,

 

P.S. Have you planned for your incapacity?  We include extensive incapacity planning in all of our estate plans.  Ready to get started?  Call my office at (503) 235-5150 or email me at [email protected].