The new year is a great time to reflect on your life and make plans for the future. This includes planning for your estate and your legal needs. Estate planning is the process of creating a plan for what happens to your assets and property after you die. Elder law is the area of law that deals with the legal needs of older adults, including estate planning, long-term care planning, and Medicaid planning.
Here are some tips for new year planning related to estate planning and elder law:
- Review your estate planning documents. If you have a will, trust, power of attorney, and advance directives, make sure to review them annually to make sure they are still up to date. Your life circumstances may have changed since you created these documents, and you may need to make updates to reflect those changes.
- Consider creating an estate plan if you don’t already have one. Everyone should have an estate plan, regardless of their age or wealth. An estate plan can help to ensure that your assets are distributed according to your wishes and that your loved ones are taken care of after you die.
- Talk to your family members about your wishes. It’s important to have a conversation with your family members about your estate plan and your wishes for your long-term care. This will help to avoid any surprises or disagreements after you die.
- Update your beneficiary designations. Beneficiary designations are instructions that tell your financial institutions who should receive your assets after you die. Make sure to review your beneficiary designations annually to make sure they are still up to date.
- Consider long-term care planning. Long-term care can be very expensive, and it’s important to have a plan in place to pay for it. There are a number of different ways to pay for long-term care, including long-term care insurance, Medicaid, and personal assets.
- Talk to an elder law attorney. An elder law attorney can help you to create an estate plan, develop a long-term care plan, and navigate the complex Medicaid laws.
Here are some specific new year planning tips for different age groups:
- Young adults: If you are a young adult, you may not think that you need to worry about estate planning. However, it’s important to have a will in place, even if you don’t have many assets. A will can help to ensure that your assets are distributed according to your wishes if you die unexpectedly. Additionally, you should have a Healthcare Proxy, HIPAA Authorization, Durable Power of Attorney and Advance Directive. These foundational documents help facilitate your health care, as well as, your legal and financial needs should you be incapacitated.
- Young families: Protect their spouse and children. An estate plan can help to ensure that your spouse and children are financially secure in the event of your death. Also, as part of a Kids Protection Plan, appoint guardians for their minor children. If you have minor children, you need to appoint guardians who will care for them in the event of your death. Your estate plan can specify your preferred guardians.
- Middle-aged adults: If you are a middle-aged adult, you may have young children and aging parents. This is a good time to review your estate plan and make sure that it is up to date. You may also want to consider creating a trust for your children or for special needs family members.
- Retirees: If you are retired, you may be concerned about paying for long-term care. This is a good time to talk to an elder law attorney about your options. You may also want to consider updating your estate plan to reflect your changed circumstances.
No matter what your age or life circumstances, it’s important to have a plan in place for your estate and your elder years. By taking some time to plan now, you can help to ensure that your loved ones are taken care of after you die.