The 5 Things Everyone Needs Before a Crisis – Even If You Think You’re Too Young
How Estate Planning and Crisis Management Fit Together
If you’re like many, estate planning and crisis management are two things you don’t really think about until something forces you to give them attention.
Many people assume that estate planning is only for retirees or the very wealthy. However, accidents and health crises don’t wait until a degree of wealth is achieved. They also don’t wait for people to reach retirement age. When you deeply understand those things, you will likely change that assumption. The harsh reality is that everyone 18 years of age and older needs to have at least 5 basic legal documents in the event of a crisis. Without these basic legal documents, an unexpected painful situation can become a financial and emotional disaster.
When it comes to estate planning and crisis management, below are the five essentials every adult should have—no matter how young or healthy you are.
Power of Attorney (POA)
A POA allows someone you trust to manage your finances if you become incapacitated. Without it, families often must go to court to gain authority. One young professional injured in a car accident had bills piling up, but no one could access his accounts. His parents spent months in court while his credit suffered.
Healthcare Directive (Living Will)
This document spells out your medical wishes if you can’t speak for yourself. Without one, doctors may default to aggressive treatments you wouldn’t want, and families may disagree. In one case, siblings fought over life support decisions because nothing was written down.
HIPAA Authorization
HIPAA laws protect privacy—but without authorization, they can block loved ones from getting critical information. This is especially important for college students. A hospitalized college student’s parents were denied updates because he never signed a HIPAA release, leaving them powerless during a medical emergency.
Will or Trust
Without a will or trust, the state decides who gets your assets. An unmarried couple learned this the hard way when one partner died suddenly, and assets went to distant relatives instead of the surviving partner.
Beneficiary Reviews
Outdated beneficiaries can override your will. After a sudden death, an ex-spouse received a large retirement account simply because the beneficiary form was never updated.
As you can see from the few brief examples mentioned above, these documents aren’t about age or wealth. They’re about protection.
No matter how young you are, if you are over 18 years old, putting them in place now is an act of love and responsibility. Hopefully, they will never need to be used. But if they are needed, having them in place can spare your loved ones from chaos when they need clarity most. And the good news is that as you approach retirement age and your wealth and assets have grown, these documents can be updated to become part of your estate and asset protection plan. To get started, give my office a call today at (470) 235-7868.
Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!
