The consequences of not having an estate plan or not having an updated estate plan can be significant and even devastating. My family has learned this due to the lack of planning and faulty planning on my parents part.
An estate plan includes numerous documents including a will, a durable power of attorney (POA) and an advanced medical directive (AMD). A “will” directs the disposition of assets upon one’s death. A “POA” gives someone the authority to make financial and related decisions for you. An “AMD” gives someone the authority to make medical decisions on your behalf, including decisions to end life support.
Another aspect of an estate plan is medicaid planning for older adults. Medicaid planning is critical to reduce the amount the government will take from your parents if they have to move to a nursing home.
In some instances not having an estate plan will not have any or minimal consequences. For example, if I don’t have any assets and no family members the lack of an estate plan would be minimal. However, the effects could be profound for an individual or family with assets that is struck by a tragedy and has no estate plan. The effects may include losing control over how assets are distributed and having to pay more in taxes.
At Torus Law we are committed to helping individuals and families protect and preserve their assets. For more information about how an estate plan can help you meet your financial goals contact us.
Torus Law, PLC