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The Bare-Minimum: What You Need to Protect You and Your Loved Ones In Times of Crisis

4/24/2020

While most of us have thought about putting together an estate plan, it is not usually at the top of our “to do” list given the many things we juggle on a daily basis: work, taking care of kids or elderly parents, managing households, keeping up the house or garden, planning vacations, trying to exercise, seeing friends. . . and the list goes on.

As a result, many people now find themselves in the midst of a lethal and unpredictable global pandemic wondering what would happen to them and their loved ones if they became ill. Estate planning has suddenly become a top priority, but, given shelter in place orders and social distancing, putting together an estate plan right now can feel overwhelming.

Here is a short list of the bare-minimum estate planning documents that everyone should have in place as we move through this pandemic:

Simple Will Designating a Guardian. If you have a child under 18, it is critical that you have a Will designating a guardian for your children. Without a Will setting forth your wishes, if you die unexpectedly, this important decision will be left to a Judge. And although Judges do their best to pick the right person, they do not know your children or your family like you do. Judges also almost always pick a family member, which may not be what you want. For you and your children's peace of mind, you should decide now who should raise them if you cannot.
Will Protecting Your Loved Ones. In Idaho, if you die without a Will, your assets are distributed according to state law. Under these laws, your assets go first to your spouse, who gets all of the community property and ½ of your separate property (the other half is divided equally between your children). If you do not have a spouse, your property is divided equally between your children. If you do not have children or a spouse, your property goes to your parents, and if they are not alive, to your siblings. If you want any of your assets to go to a non-family member, a charity, or divided another way – perhaps one of your children is less financially secure than his siblings and you want to leave more to him or maybe you are caring for your parents and want to ensure they are provided for if you pass – you need to have a Will setting forth these wishes.
Power of Attorney for Finance. Some of the sickest Covid-19 patients can be placed on ventilators for as long as 21 days, during which time they are often heavily sedated and unable to communicate. If this were to happen to you, you need to have a Power of Attorney for Finance in place designating someone to manage your finances for you while you are incapacitated. A Power of Attorney for Finance allows a trusted friend or family member, chosen by you, to ensure your loved ones and your financial obligations – such as bills, mortgage payments, health insurance premiums – are taken care of. Without a Power of Attorney for Finance in place, someone would have to ask a Judge to be appointed as your conservator, a slow-moving legal proceeding not designed to respond to a temporary emergency.
Power of Attorney for Health Care. A Power of Attorney for Health Care allows you to choose someone to make medical decisions for you if you are too sick to communicate with your doctors. This person should be calm during times of crisis and be able to digest complex medical information. For many people, this is not always their closest family members, such as their parents, but instead may be a level-headed sibling or a dear friend. Without a Power of Attorney for Health Care, you have no way of communicating who you want making these decisions for you.

These documents deal with only the most basic situations and cannot replace a comprehensive estate plan that is tailored to you and your loved one’s unique needs. However, in times of crisis, having the bare-minimum is essential and can alleviate one source of anxiety.

If you want more information on preparing these essential documents or estate planning in general, give me a call at 208-995-9224 or shoot me an email - shaila@shailabuckley.com

Document Wrangling: What Records To Keep And For How Long

4/3/2020

Most people I know have years of old papers tucked away in filing cabinets, piled up on desks, or stored in the infamous “To Be Filed” folder. In the world of estate planning, these troves of documents are often left for heirs to sort through after a loved one’s passing. A big reason for this is that we don’t know what records to keep or for how long.

Here’s a list of the types of documents you should hang on to and the amount of time to keep these records.

Keep indefinitely in a safe place (such as a fireproof box or safe)

Birth certificates
Adoption papers
Marriage licenses
Death certificates
Divorce decrees
Social Security cards
Passports
Military discharge papers
Estate-planning documents (Wills, Trusts, Powers of Attorney)
Life-insurance policies
Deeds, mortgages and bills of sale
Title to your current vehicles
Tax returns (but not the supporting documents – see below for when to discard those)
Year-end statements for investments
Medical records
Pension plan records
Retirement plan records

Keep for seven years

Supporting documents for your tax returns (note that the IRS can audit you for three years after you file a tax return; for six years if they think you’ve under-reported your income; and indefinitely if you didn’t file a return at all – click here for the IRS guidelines on record retention)
Receipts for large items (such as large home appliances)
Home purchase or sale and improvement records
Medical bills/claims

Keep for one year

Bank and credit card statements (unless the information supports your tax returns)
Paycheck stubs
Utility bills
Checkbook ledgers
Monthly mortgage statements
Investment statements (discard after you receive your year-end statement)

Lastly, keep in mind that when discarding records, you should shred or otherwise destroy them to protect your confidential information.

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The Bare-Minimum: What You Need to Protect You and Your Loved Ones In Times of Crisis

Document Wrangling: What Records To Keep And For How Long

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