Test Your Estate Planning Savvy
By Barbara S. Schlichtman, Esq., Perkins Thompson and the Maine Center for Elder Law
207-467-3301
QUIZ: Test Your Estate Planning Savvy
Do you have a will or trust?
Do you have a financial and medical power of attorney?
Have you reviewed your documents in the past five years?
Have you reviewed beneficiary designations in the past two years?
Have you discussed “end-of-life” choices with your loved ones?
Give yourself 2 points for each question you answered “yes” and 1 extra credit for knowing where the originals are.
If you scored:
10 -11 points - You are an estate planning rock star! Keep up the good work by keeping beneficiary designations and documents current.
6-8 points - This is still darn good. You can go next-level by giving your estate plan a bit more attention.
0-4 points - Going in the right direction by reading this article. Read further, and you will have an outline to begin organizing and planning.
Aging is a journey that reveals our wisdom, values, and what truly matters. In the spirit of wabi-sabi, the Japanese philosophy that finds beauty in impermanence and imperfection, we can embrace aging not as loss, but as an opportunity to prepare with intention.
Just as a well-used object gains meaning over time, our lives gain clarity—and with that, the responsibility to ensure our wishes are known and honored. Estate planning allows you to shape your legacy, protect those you love, and bring peace of mind.
The basic documents that each adult should have are a financial power of attorney, medical power of attorney, and a last will and testament and/or trust. In addition to these documents, there should be a clear record of assets that identifies the ownership and whether there are joint owners or beneficiaries.
Financial Power of Attorney
The financial power of attorney is arguably the most helpful document because it authorizes someone to assist if an individual is unable to do so. Postponing the execution of a financial power of attorney is a strategic error. In the absence of this document, someone must go to court and be appointed as a conservator in order to manage finances, sell property, talk to the insurance company and so on. This court appointment takes time and money, including the requirement to prepare an annual accounting that must be submitted to the court and interested parties. Remember, the financial power of attorney authorizes the “agent” to transact business while the principal is alive. Once the principal dies, the power of attorney is no longer in effect.
Advance Health Care Directive
The health care directive is the document where you name the person who you want to make medical choices for you when you are no longer able. The form is the place to record your end-of-life wishes. Studies support that having a health care directive increases the likelihood of dying in the way you would choose. In the document, the physician is instructed to follow the health care directive unless there’s a reason of conscience not to do so. Factors that could lead to physicians not relying on the directive would include the age of the document and disagreement among the loved ones about the end-of-life choices; therefore, conversations about end-of-life choices are very important.
Last Will and Testament
The will controls the distribution of assets that do not have a joint owner or a beneficiary. The will is also the document where you identify who you want to administer your estate. Using a will-based plan requires going through the probate court process. Having a will does not avoid probate. Having a trust avoids probate.
Trusts are a more sophisticated estate plan. If you are curious about a trust, then talk with an estate planning attorney. Trusts serve a number of purposes, and you need to identify whether one of the purposes benefits your family. Common reasons people use trusts are asset protection, special needs planning, estate tax planning, and to avoid probate.
Finally, it is a good practice to review your documents once a year. Regular planning and maintenance goes a long way in minimizing stress during an emotionally charged time, which makes it a true act of love for those who are left behind.
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