If you’ve done any estate planning, or even if you’re just familiar with it, you probably know the basics, meaning that a comprehensive estate plan can help you pass on assets to your family while also achieving other goals, such as now appoint someone to take care of your affairs if you are unable to do so. But you may not be aware of some other estate planning issues that could prove important in your life:
Power for Students – College-going children may be considered legal adults in many states. Consequently, you, as a parent, may have no control over medical treatment if your child faces a sudden and serious illness or is involved in an accident. Instead, a doctor who does not know your child or your family may decide on a course of action that you may not approve of. To avoid this, you may want your college student to sign a medical power of attorney form, which allows you to make decisions on your child’s behalf if doctors don’t think your child can make those decisions. You may also want to combine the medical power of attorney with an advance health care directive or living will, which allows you to specify actions you do or do not want to happen. In any case, consult your legal counsel before taking any of these steps.
Community property versus common law – Not all states treat the possessions of married couples equally. If you live in a community property state, property you acquire during your marriage is generally considered the property of each spouse equally, with some exceptions. But if you live in a common law state, property you acquire while married is not automatically owned by both spouses. In these states, if you buy property, you own it unless you choose to put it in your and your spouse’s name.
This does not necessarily mean that your spouse has no rights, however, because common law states often have rules that protect surviving spouses from being disinherited. But here’s the kicker: If you move from a community property state to a common law state, or vice versa, you may not want to assume that your and your spouse’s property status will remain the same. Accordingly, if you move, you may want to consult an estate planning attorney in your new state to determine where you are located.
Pet Trusts – You always strive to take good care of your pets. But what could happen to them if you become incapacitated in some way? Unless you have a close family member or friend who is willing to take over the care of your pet, you may want to consider setting up a pet trust, which can last during your lifetime or after your death. Typically, an administrator will make payments to the caretaker you’ve appointed for your pet, and payments continue for the life of the pet or a set number of years. Again, an estate planning attorney can help you with this arrangement.
Estate planning certainly involves the general problem of leaving a legacy to the next generation. But the issues we’ve covered may also be significant to you, so you’ll want to address them properly.
Jennifer Barrett (AAMS) is a local financial advisor at Edward Jones.
225-612-0413 | jennifer.barrett@edwardjones.com
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Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate planning attorney or qualified tax advisor regarding your situation.
This article was written by Edward Jones for your local Edward Jones Financial Advisor.
