LIFE'S EXIT STRATEGY

My mother passed away during the Holiday season, and even in death she showed just how much she cared about her children. Thanks to the prodding of my wonderful sisters, she put in to place a medical power of attorney, put her home into a Trust, and financial matters in order. That may not sound like a big deal yet according to Findlaw.com less than one in three Americans 32 percent have a living will, spelling out whether they want life-sustaining medical care in case they are incapacitated or otherwise unable to communicate their medical treatment preferences.

Without her directives, mom may still be on life support with no chance of recovery, and her family left to agonize “should we pull the plug, but what if”……

The vast majority of Americans could potentially be leaving legal problems for family members if they are unable to communicate their health care wishes due to illness or loss of consciousness. The Baby Boomer generation has now become the Caretaker generation and we need to wake up. Living wills and health care directives let you specify which treatments you want, and who will make decisions when you're not able to. Otherwise, misunderstandings and disagreements among family and other care providers can result in delays in treatment or carrying out actions that are contrary to your wishes. Things need to be spelled out in advance through a living will.

I used to hear my father say “the more things changed the more they stay the same” followed by “you’ll understand when you get older”. Now that I’ve blown by puberty, turned into my father and settled down comfortably into the AARP zone, I get it!

Some things are certain & absolute, history repeats itself, Social Security is still in trouble as it has been during my lifetime time, the Middle East is still in turmoil, the stock market is still a roller coaster ride, we are still writing on walls to communicate (as did the Egyptians), our economy “tanks” every 20 years or so, parents don’t discuss financial matters with their children, and in general we will spend more time planning a vacation rather than our future.

Over the last several years I’ve had the pleasure of helping others to diversify and build their nest eggs by adding an alternative vehicle to their investment strategy. I’ve admired them all for their dedication and efforts to build more than a comfortable retirement, each one wanting to leave a legacy for their loved ones and philanthropic endeavors.

Last year 3 of my clients made their way through the pearly gates. These clients who became my friends were all part of a generation that did not discuss financial matters with their families. In each instance the families were blindsided not only by the sudden loss but the lack of direction regarding the estate. They were not as prepared as I had always believed them to be. They were diligent in identifying investment opportunities, diversified and insulated portfolios they most certainly were never going to outlive their money, and their grandchildren would be well taken care of. Well they would have been. In each case not even a name or phone number for their attorney was left. Sadly, aside from offering condolences, legally there was absolutely nothing I could share with them regarding the money their parents had invested with my firm.

Everything their parents had would go to probate, not the intended beneficiaries of all their years of work preparing and building.

You don't have to be rich to consider this necessary. Those you leave behind will suffer enough; I urge you to start the conversation with your family and friends and put your plan in place. A weekend of your time putting a plan in place can allow your family to celebrate your memory & alleviate years of unnecessary pain, anguish and suffering.

 Having an effective estate plan is one of the most important things you can do for your family. 5 simple steps

1. Will

A will provides instructions for distributing your assets to your family and other beneficiaries upon your death. Your attorney can customize its provisions to meet your needs. But remember because a will does not take effect until you die, it cannot provide for management of your assets if you become incapacitated. That's why it is important to have other estate planning documents, discussed below, that become effective if you should become incapacitated.

2. Durable power of attorney

A traditional power of attorney terminates upon your disability or death. However, a durable power of attorney will continue during incapacity to provide a financial management safety net. A durable power of attorney terminates upon your death.

3. Health care power of attorney

A durable power of attorney for health care authorizes someone to make medical decisions for you in the event you are unable to do so yourself. This document and a living will (see below) can be invaluable for avoiding family conflicts and possible court intervention if you should become unable to make your own health care decisions.

4. Living will

A living will expresses your intentions regarding the use of life-sustaining measures in the event of a terminal illness. It expresses what you want but does not give anyone the authority to speak for you. In some states, this document may be combined with a health care power of attorney.

5. Revocable living trust.

There are many different types of trusts with different purposes, each accomplishing a variety of goals. A revocable living trust is one type of trust often used in an estate plan. By transferring assets into a revocable trust, you can provide for continued management of your financial affairs during your lifetime (when you’re incapacitated, for example), at your death and even for generations to come. Your revocable living trust lets trust assets avoid probate and reduces the chance that personal information will become part of public records.

Consult an estate-planning attorney. Living wills and powers of attorney may be invalidated or contested if there are errors or problems conforming to state law. You can find a qualified, experienced estate-planning attorney in your area using online lawyer directories such as FindLaw (http://lawyers.findlaw.com).