No matter what age you are in life, you are always going to be planning for the future. This is simply a part of our culture, and as we age, our future plans can seem gradually more attainable since everyone knows how inevitable future life events are. It’s always the safest route to be as prepared as possible.
Many people get caught up with planning their lives perfectly, their end of life plans can be put off and even seep through the cracks of their preparations until it’s too late. Some of the major legal documents everyone must consider in terms of end of life planning include things like a power of attorney and a living will. In general, end of life planning allows people to live out their final years of life with dignity and a lack of stress for themselves and their family members.
What is end of life planning?
End of life planning for many people can include retirement plans and all of the financial responsibilities throughout one’s career that go along with retirement. It also involves some very difficult decisions that can affect an elderly person’s family, both emotionally and financially for years.
Many times, end of life planning will entail making sure you and your family are on the same page legally and financially in the case that you one day become mentally incapacitated and cannot make decisions for yourself. This includes power of attorney and living will documents being created, but it also includes much more than that.
Planning your options for end-of-life care is also extremely important, and there are several options for care and how to pay for special treatments. Nursing homes always offer the most amount of around-the-clock skilled care outside of a hospital, and for certain individuals who need constant attention nursing homes can be a good option. Of course, many people don’t want to live in a nursing home and prefer living in their own home, but in many cases with terminally ill patient’s, special equipment and nursing care is required.
How does one go about end of life planning?
Some of the major steps that everyone should consider when it comes to end of life planning include the following:
Making a Will
This is the most basic document that goes into end of life planning, and it specifies exactly how you want your assets distributed once you’ve passed. If you do not make a will, your assets will be taken to probate court where they will decide how to divide your property according to your state’s inheritance laws.
Utilizing a Living Trust
A will is limited in terms of estate planning, thus it’s essential to also establish a living trust so you and your beneficiaries can manage your assets before and after you die without legal conflicts. Some of the assets that you can put in a living trust include stocks, artwork, vehicles, real estate, bank accounts, jewelry, antiques and much more.
Securing the Proper Beneficiaries
It’s important to make sure that your assets go to the right person with as little legal hassles as possible. One critical aspect of this part of the end of life planning process is to establish a right of survivorship in the case that you and your spouse have set up joint bank accounts. When you set up a right of survivorship your spouse receives your assets without any hassles in probate court.
Evaluating Insurance Options
Reviewing your life insurance is always necessary when it comes to your end of life planning, and that mainly is to ensure you have enough coverage for you or your spouse in the case of a sudden death. Long-term disability and care coverage are also important insurance options to consider since having these types of policies can end up saving you a lot of money in the long run.
Why is it financially responsible to plan for death?
There are several reasons why it’s responsible to plan for your own death, and the main financial responsibilities that are involved with end of life planning include the following:
- Protecting the financial stability of your family
- Eliminating Probate Court/financial threats
- Managing what you’ll do in the case of incapacitation
All three of these crucial financial responsibilities allow you and your family to encounter your passing properly, and that in it of itself is a beautiful last gift to give to all of your loved ones.