What's Your New School Year Resolution?
This school year is unlike any other. Although it retains all of the hectic running around, supply gathering, and planning associated with any other new school year, it does not have the benefit of knowing soon routine will take over, and your kids will be safely back at school once again. This year, our kids are staying home. Parents are not only scrambling to purchase supplies, but also to set up home workspaces for kids, to plan for at-home learning, and to make time in their schedules to teach, tutor, and supervise -- as well as parent and work. It’s a lot.
Despite the out-of-control feeling many of us parents may have this Fall, it is important that we approach this new school year with positivity and with a clear intention for what lies ahead. That’s why I want to invite you to create your very own New School Year Resolution.
This week, as kids get back to school, try to carve out for yourself a few minutes of downtime to set your intention. What will be your New School Year Resolution?
Cross Something Big Off Your To-Do List
By no means do we want to add anything to your plate this fall. We know parents are busy and often overwhelmed. If this is something that’s not yet on your plate, print out this blog post or make yourself a note and set it aside -- we will be here for you when you are ready. But, if estate planning is already on your mind, if it’s been hanging out on your To-Do list and stressing you out, let the team here at Wakefield Law help you cross it off.
Don’t worry. We aren’t suggesting that you spend the next few weeks gathering documents, waiting on hold with banks, taking inventory of all your worldly possessions, and spending hours (at a steep hourly rate) talking to an attorney. No, what we are proposing is actually pretty easy, and it can be done in fifteen minutes.
Unlike other times when you may need a lawyer (if you’re in a car accident, if you are getting divorced, if you are negotiating a contract for your business), estate planning lends itself fairly easily to a step-by-step approach. The whole process can be broken down into bite-sized pieces that won’t disrupt your life. You don’t have to do everything at once, and you don’t have to pay hourly to meet with an attorney. At Wakefield Law, our estate planning packages are offered at reliable, flat rates and can be provided at your own pace.
Trust us, estate planning does not have to be a long, stressful, complicated process. In fact, that’s why we custom-tailor each and every estate plan we create. Here’s how we do things:
Step One: Make the Phone Call
Here’s your easy-to-accomplish, take-action-now first step: make the phone call. It will take less than fifteen minutes to call, speak with an attorney, and make an appointment for your initial consultation with an experienced estate planning attorney. On your call, you will receive the support, information, and resources you need to start on your estate planning path.
See, that wasn’t too bad, was it?
Step Two: Get Yourself Organized
Remember, getting organized is Step Two, not Step One. We put organization here after you’ve spoken with an attorney because we know how difficult getting organized can be without some professional direction and support. In our experience, getting organized is the number one reason why families end up failing to create estate plans at all. They think that they need to have all of their paperwork in order, their assets itemized, and their debts paid off before they even raise the subject of estate planning with an attorney. The exact opposite is true. You absolutely do not need to have everything organized, figured out, and paid off before you meet with an attorney.
In fact, we are here to help you get organized! We recommend that you at least initiate the conversation with an attorney before diving into document organization yourself. This will help you avoid wasted time and effort.
What we do is send you a short questionnaire about your family, your assets, and your home. You don’t need to pull out all your financial records or turn your house upside down looking for receipts. You just fill the questionnaire out to the best of your ability -- we really just need ballpark figures to get you started.
Step Three: Take Care of Guardianship ASAP
If you have minor children, this step is urgent. If something happens to you, you need to know that your children will be cared for by someone that you know and trust. In the Commonwealth of Virginia, guardianship is handled in your will. We will talk more about managing assets using a will in the next step; but guardianship should be your first order of business. In your will, you can name first, second, and even third choice guardians for your minor children. If the worst should happen, a court would take your named preferences into account when designating a guardian for your children.
Step Four: Address Your Assets
You’ve heard already of the primary way assets are transferred after death: the will. However, a will is not the onlyway to transfer assets, and it’s not necessarily the best for you. A will is a set of instructions to the probate court that primarily 1) name a personal representative to oversee the distribution of your estate, 2) list any individuals to whom you want to leave assets, and 3) name guardians for your minor children. Although your instructions are taken into account, they will not change the basic outline of what will occur after your death:
Your will is provided to the probate court and probate is opened for your estate (at this time, the will and all future probate proceedings become a part of the public record),
A personal representative is named to oversee administration of your estate (taking under advisement your preferred representative named in the will),
The personal representative marshalls your assets and notifies all potential creditors who may have a claim against your estate (this can take quite a long time, and may cost a lot of money, depending on the size and complexity of your estate),
The personal representative then pays out all legitimate claims against your estate, as well as any final taxes, court costs, and attorney’s fees owed,
Of the remaining assets left in the estate, the personal representative divvies up your wealth to your named beneficiaries.
If this process sounds long, expensive, and pretty public, you wouldn’t be wrong. For some families, probate makes sense. Others prefer to create a trust to pass assets outside of probate. Not only do non-probate assets avoid the delay, bureaucracy, cost, and public nature of probate, they also allow you to exercise more control over how, when, and for what purposes assets are distributed to your loved ones after you’re gone.
Step Five: Prepare for Temporary Incapacity
Estate planning is actually a bit of a misnomer because a truly comprehensive plan has mechanisms to protect you and your loved ones even before you die. If you are injured or fall ill, whether temporarily or permanently, certain documents need to be in place.
A Power of Attorney (POA) is a document that allows you to designate an individual who can step in and take financial and legal responsibility on your behalf if you are unable to do so. Your Power of Attorney will allow the designated individual to take care of things like paying bills, keeping your business afloat, and managing your home.
Another important incapacity document is your Advance Medical Directive. This is an absolutely essential document that allows you to name an authorized individual to make medical decisions on your behalf, should you become incapacitated due to injury or illness. As part of your Advance Medical Directive, you also can sign a HIPAA waiver which will allow your medical care professionals to discuss your condition and treatment with a designated individual. Without this HIPAA authorization, your medical care providers will not be able to discuss your medical condition and treatment with your loved ones.
Take Estate Planning Step-by-Step
In total, these five steps may seem like a whole lot, but taken step-by-step, they are an absolutely achievable New School Year goal, even for the busiest of parents. With an experienced, compassionate estate planning attorney by your side, we are confident that you can finally cross this big, important “To Do” off your Back to School list. Give Wakefield Law a call to start your first step at (703) 771-9740.
Remember, if this Fall just won’t work for you, no sweat! We don’t want to add to your worries this Fall. Instead, write yourself a note, mark the date on your calendar, or set yourself a phone alarm for a month or two down the line. You can pick up your estate planning then. We will still be here!