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No one likes thinking about their death, but the truth is it comes for everyone—and it’s best to be prepared. Proper planning can help loved ones navigate everything from a division of property to health care decisions based on your own wishes.
Life is uncertain, so it is recommended that anyone over the age of 18 engages in some level of estate planning. Then, the estate plan should be reviewed every 3-5 years and after every major life event—like getting married, buying a house or having a baby—to ensure it is up to date with your current assets and still aligns with your wishes.
An estate plan is more than just a will and can have a real impact on your final days and what you leave behind for your loved ones.
Russ Nesevich, founder of Nesevich Law, shared with South Jersey Magazine the top five components to a solid estate plan—plus a bonus sixth element that can help to shelter your assets from long-term care costs.
1. Will
Your will determines what happens to your assets upon your passing. From ensuring the family heirloom is passed down to whom you want to receive it, to charitable bequests and more, your will is the guide that the executor will follow to deal with the assets you leave behind. Your will can also be used to assign guardians for your minor children and create trusts to protect the assets you leave behind.
2. Power of Attorney
A power of attorney allows you to designate the right person to take specific financial actions on your behalf such as signing checks to pay your bills. Without a durable power of attorney, should you become incapacitated, your family may be left to deal with a guardianship proceeding and there is no guarantee a judge will appoint the person that you would have chosen. Designating your power of attorney ahead of time ensures that your wishes are met and that someone is available to make decisions when they need to without having to wait for the court to give them the legal right to do so.
3. Health Care Power of Attorney
Similar to the agent named in your power of attorney, your agent named in your health care power of attorney has the legal authority to make health care decisions on your behalf when you can’t make them for yourself. It avoids conflict among family members who may have different opinions about options related to your care. This may be the same person as the one named in your power of attorney, or you may decide you’d like different people making decisions about your finances and your health care.
4. HIPAA release
Your HIPAA release dictates who is able to get information from your medical professionals and ask questions on your behalf. Unlike your health care power of attorney, people listed under your HIPAA release will not be able to make health care decisions but can be informed of your condition and treatment plans.
5. Living Will
Your living will outlines your wishes when it comes to end-of-life medical care and can become the most important document of your life—literally. It can determine how long you’d like to remain on life support if needed, your preferences regarding pain management, your preferences regarding hydration and nutrition, and more. It can prevent your family from having to make hard and emotional decisions during an already difficult time, because you will have already made those decisions for yourself.
As a bonus, Nesevich discussed the potential benefits of placing your assets into certain kinds of trusts. While not for everyone, a trust can provide additional privacy for those who need it, or make probate easier if an estate is particularly complicated (like owning real estate in multiple states). In addition, getting assets into certain kinds of trusts early enough can potentially protect those assets from long-term care costs.
Contrary to Hollywood films, estate planning isn’t just for the wealthy—everyone should, at a minimum, have their basic documents in place.
Nesevich Law, LLC
Moorestown & Manalapan
(856) 439-6223
NesevichLaw.com
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Published and copyrighted in South Jersey Magazine, Volume 21, Issue 9 (December 2024)
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