Most of us have heard the famous quote: “nothing is certain except death and taxes.” While the possibility of becoming incapacitated or one’s own death is not a pleasant thought, finding yourself in one of these situations without the proper preparation could have a negative impact on you and/or your family. Listed below are four common issues that demonstrate the importance of estate planning. At Watch City Law Offices LLC, we prepare core estate planning documents that can address your estate planning needs.
Issue 1: Who will make your health care decisions?
In Massachusetts, if you become incapacitated or incompetent without a health care proxy, the health care provider has the right to confer with “responsible parties” when making your health care decisions.[1] Initially, this may seem harmless. Yet, it raises a number of questions. For example, who are the “responsible parties”? What if the “responsible parties” do not know your wishes? What if the “responsible parties” disagree with your wishes? What if the person that knows your wishes is unrelated to you and has no access to you in an emergency situation? Even as a young adult, if you are 18 or older, your parent(s) will not automatically be in charge of your care.
Without a health care proxy, you are stuck with the “responsible parties” making those decisions; whoever the “responsible parties” might be.
Issue 2: Who will make your financial decisions?
No one automatically has control over or access to your individually controlled asset(s). Individual assets include bank accounts that are held in your name only. It is important to set up a proper power of attorney early on. If you have not and you find yourself in need of someone to manage your individual asset(s), either a guardian or conservator will need to be appointed. The process of appointing a guardian or conservator can be a lengthy, costly, and public process.
Issue 3: What will happen to your children?
Have you ever considered: what would happen to my child(ren) if I became incapacitated or passed away? Without the proper documentation, there is no authority for anyone to step in immediately if that happens. Even though the surviving natural parent is the most likely candidate, it is not a guarantee. If both parents pass away without the proper paperwork in place, there could be a gap in time when no one has legal authority over the minor child(ren). The gap in time could continue until the guardianship process is opened.
Issue 4: If you pass, how will your property be distributed?
When one considers estate planning, wills and trusts are common documents that come to mind. Depending on your circumstances, you may or may not need both documents. Why are these documents important? These documents let you decide how to divide your belongings and your assets after you pass. Without a will, and a trust in certain circumstances, the state decides how to disburse your estate.
To discuss your options, call Watch City Law Offices LLC or send us an email.
617-999-7174
bft@watchcitylaw.com
[1] Massachusetts General Laws Chapter 201D § 16
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Any information is subject to change.