It may be a bummer, but most of us live in denial of our harshest reality: life is fragile, and anyone can go at any time. It’s a heavy thought to deal with, which is why being prepared for that inevitable moment can help us trade in stress for a newfound ability to enjoy the lives we’re given.
If you are a total newbie to wills and trusts, there’s no need to worry. In fact, only an estimated 31% of our society feel even somewhat knowledgeable about the in’s and outs of estate planning. Most of us have a lot to learn, but that doesn’t mean you need to fork over a ton to retain the services of a lawyer. With a little time and research, you can do a DIY dive into the world of wills and set up everything you need to sleep easier at night.
If you have the “willpower” (sorry, we couldn’t resist), here are some tips to get you started:
- Create a Basic Will – Think of a will as one last chance to get your way. Without this document, the government will distribute your stuff as it sees fit, and who wants that? An effective will doesn’t have to be super-long or detailed, as long as you accomplish the task at hand: clearly stating whom you’d like to receive your assets. If you have children (or pets), you’ll also want to name guardians or caretakers for them and/or their belongings, finances, inherited properties, etc.
- Don’t Forget a Living Will – The previous type of will is designed to benefit your loved ones. A living will? That’s for you. Also called an “advance directive”, this is a legal document that outlines the types of medical care that you wish to receive or refuse in case you become too ill or incapacitated to communicate.
- You’ve Got the Power (of Attorney) – A POA empowers someone of your choosing to make decisions about your health care and finances if you are unable to. You can elect one person for the job or split it between two (rumor killer: despite the name of the document, whomever you choose doesn’t have to be an actual attorney.)
- A Matter of Trust – If you want to get the ball rolling early in bequeathing (use that word in conversation and feel your ego inflate!) your assets to your loved ones, a trust fund is a fantastic option to consider. It’s a bit like putting a potential purchase on layaway. However, in this case, you are putting your own assets aside via a legal document so they can quickly and easily be given to your designated beneficiaries upon your death. This is a fantastic way to save your loved ones a lot of headaches during what will likely be a stressful time for them.
- Check Your Work – If establishing this documentation has been a long-term project (translation: you started years ago and still haven’t gotten around to finishing it up), double-check your progress and make sure that all your beneficiary information is up to date. Has anyone on the list passed away? Did a potential guardian move or experience a life change that would cause you to rethink your decision? Is everyone updated contact information readily available?
- Get Your Ass(ets) in Gear – Most of us have a strong handle on our traditional assets – bank accounts, 401K’s, the cash we stash in our piggy bank for “Treat Yo’ Self” Days…. But what about our digital dough? If you have any money tied up in Paypal, Venmo, or even digital gift cards, you should make a list of those assets (along with any necessary logins and passwords) and include them in your will (or, at least, proactively give that information to someone you trust).
- When You’re Gone – Do you have a strong opinion about what happens to your body after you pass on? If so, you may want to incorporate those instructions into your end-of-life documents (having that conversation with your loved ones is also a great way to guarantee that they understand your wishes, unpleasant as it may be). If you’d like your body and/or organs to be donated for any reason, make that clear in both documentation and conversation as well.
- The K.I.S.S Method (Keep it Safe, Stupid) – No matter when and how this paperwork eventually comes into play, rest assured that it won’t be very helpful if no one can find it. Whether a Doctor needs to quickly understand the medical wishes outlined in your Living Will, or financial or custody decisions need to be made soon after death, be sure to keep your documents in a place that is easily accessible, safe from harm, and known to anyone who might need to get their hands on it.
Creating a smooth, seamless plan to take care of your loved ones after you’re gone can bring you wonderful peace of mind. Congratulations – by learning about the steps you need to get started, you’ve taken the all-important first step in preparing for the future.
