“I need an estate plan, but does that just mean I need a will?” That misconception is common in that most people assume all they need is a will in order to have a complete estate plan, but that misconception could end up harming your loved ones in the long run. An estate plan is much more than that, and without the proper knowledge, you could end up hurting yourself more than helping yourself.
A basic estate plan does include a will. This document will detail who will be your “personal representative,” the person or persons who will handle all your estate matters, selling and distributing your assets, paying off your debts and ensuring that all assets and liabilities are accounted for and handled properly. If you have minor children, this document will also detail who will take care of your children in the event of your death. Lastly, this document will divide your property up between your beneficiaries. Any specific bequests you have will be included within the will.
An estate plan also includes a living will. This document is important as it includes your wishes should you be in a medical state where you do not have a possibility of recovery. It allows you to either tell your loved ones to continue to keep you on life support or to not continue your life should you be in a vegetative state with no possibility of recovery. Without this document, the hospital often has their hands tied in being unable to determine how to proceed, and it also can pit loved ones against each other in the event none can agree on how to handle your medical affairs. While the State of Michigan does not mandate a living will, having one does provide your loved ones an accurate representation of your wishes.
A power of attorney is also included in an estate plan. This document gives the authority to someone you trust to handle your finances or legal affairs in the event you are not able to do so either through unavailability or incapacity. It is only good during your lifetime, and allows this individual or individuals to sign checks on your behalf as well as other legal, binding documents. It is important in the event you suddenly do face tragedy and are not able to make decisions. If you are suddenly incapacitated, and you do not have a power of attorney, your loved ones will need to seek a legal conservatorship, which is a lengthy and costly process through the court system.
A healthcare power of attorney is similar in that it authorizes an individual to make medical decisions on your behalf in the event you are not able to do so. If you are in surgery and require an additional procedure, this person can authorize this procedure should you not be able to do so.
Lastly, with Sullivan Law Office, we also include a funeral planning declaration in your estate plan, which details your wishes for your funeral and burial. It can be as detailed as you wish, depending on your plans and how much discretion you wish to give your loved ones.
It is also very possible that the basic estate plan is not enough to cover what you really need. If you have a sizeable estate and wish to avoid probate, a basic will is not going to be enough to accomplish this goal. Rather, some form of living trust will be needed and should be considered.
At Sullivan Law, we offer estate planning packages at a flat and reasonable fee. We also offer free consultations to discuss what your needs are, what you would like to do, and how that can be best accomplished. Everyone’s needs are different, and your wishes should be clearly listed and understood.
Call us at 248.917.1351 or email at asullivan@sullivanlawonline.com to schedule your free consultation today. We look forward to working with you!