Preparing for the Unexpected
You can't expect the unexpected, but you can plan for it. You see, no matter how careful and cautious we are in our lives, the unpredictable is always waiting just around the corner. And while sometimes it comes in the form of a gift that changes your life for the better, it is more often than not the opposite.
Indeed, 2020 has been a big year for the unexpected. Due to the rapid spread of COVID-19, people of all ages were shocked to find themselves fighting for their lives in an ICU. Take 18-year-old Michael Lang from Illinois. A healthy kid who was getting ready to head off to college, he passed away not long after his diagnosis with COVID-19.
Disease is one thing, but unexpected accidents are a completely different matter. For instance, take the famous case of James Heselden of England. The owner of the Segway corporation, he was found at the bottom of a cliff after having apparently lost control of his own Segway machine while out for a ride.
A wise man once said that the only two certainties in life were "death and taxes." And while we might not know when we will face the former, we can luckily prepare for both ahead of time. How? By doing some basic estate planning. This means taking steps to ensure your affairs are handled as you'd like them to be in the event you become incapacitated or pass away. What does basic estate planning entail?
For starters, there is a Will. This is a document that specifies exactly what you want to be done with your assets when you pass. Without a Will, your state may determine how to divide up your assets among your relatives. But with a Will, you can specify to whom you'd like specific assets to go while providing protection for your loved ones in the event they suffer mishaps of their own.
Next is the Property Power of Attorney. This document designates an "agent" to manage your finances should you become unable to make decisions on your own. This is important in situations where you might become mentally incapacitated, but have not yet passed away.
Then you have the Healthcare Power of Attorney. This is a document designating an agent to make decisions regarding your medical health. If you were to be severely injured or end up in a compromised mental state, this trusted individual could look out for your well-being.
Along the same lines, we have the HIPAA Authorization. This is a document allowing your loved one’s access to confidential medical information. While it doesn't seem like much, this data can be a huge help when they need to make decisions about your ongoing care.
Last, we have what's called a Revocable Living Trust. This is an account that holds the title to your property and assets. When you pass away, management of these assets passes on to a trustee that you designate. As there is no probate required in this transfer, it is faster, less expensive, and more private than other options. Simultaneously, trusts guarantee all the protections one would enjoy through a Will.
In the end, we must acknowledge that life is – if anything – unpredictable. Both Hames Heseldon and Michael Warrington thought they had years left to get their affairs in order. Things didn’t turn out that way. To ensure your family and your finances are taken care of tomorrow, start doing some basic estate planning today.