It’s only natural that many people find themselves questioning their mortality as the coronavirus pandemic continues to rage on without a cure in sight. With so much uncertainty and risk looming on the horizon, families and their loved ones are thinking about the next steps to take in case they were to fall ill. This not only applies to at-risk elderly individuals, but also to adults with predisposing conditions, victims of intensified domestic violence abuse, and children with disabilities.
Estate planning is something you should always have in mind, but this holds true now more than ever. Some are revisiting and revising the documents they’ve drawn up decades ago, while many others are frantically scrambling to write wills and make critical decisions regarding who will be in charge of their medical care and finances if they become incapacitated — which is a process that should never be rushed.
Unfortunately,
a recent study shows that roughly 52% of people over age 55 don’t have a will
nor key estate planning documentation they might need during a pandemic. As
health officials continue to urge people to stay inside and shelter in place to
slow the spread of the virus transmission, it might be difficult to schedule a
consultation with a lawyer who can provide assistance throughout the process.
If
you have to go with the DIY online method, the forms you’re required to fill
out can be rather complex and they contain questions that are often
uncomfortable to think about. You’ll also need to take extra steps to legally
legitimize the online documents by way of a notary whose services might be hard
to come by due to business closures.
All
of this stress and confusion, combined with a panicked sense of urgency, could
be a sure recipe for mistakes — sometimes, ones you can’t take back. Be sure to
read through this guide on Covid-19 estate planning to ensure you and your loved
ones are taking all the right precautions.
Essential
Documents for Estate Planning
What’s
considered essential? The minimum list includes these five items:
● Trust
A
trust is a fiduciary agreement that allows a third-party or the “trustee” to
hold assets on behalf of the beneficiaries. Trusts are used in estate planning
to help avoid taxes and probate, and they can also protect assets from
creditors. Trusts may also include “bequests”, planned charity gifts, that the trustee donates upon
passing.
● Will
The
will is the legal document that determines how your assets are distributed once
you pass, and it can also determine who to appoint as guardian for minors. If
you do not have a will at the time of death, your state’s laws will determine
who receives your assets and property. You can check out Nolo’s state-by-state guide for more information
based on your location.
Most
states require two witnesses to watch you sign the will, and then they must
sign as witnesses. Beneficiaries under the will typically do not qualify as an
eligible witness.
● HIPAA Authorization
By
signing a HIPAA authorization form (named after the Health Insurance Portability and Accountability Act that was
designed to protect privacy and ease of access to medical records), you give
consent to a health care provider to share your patient information with a
certain individuals or groups, such as your family members. Notarization isn’t
required, but you should make sure the original document is accepted by your
doctor and his or her staff.
● Power of Attorney
Sometimes
known as a “durable power of attorney”, or health care proxy is the person you
authorize to make health care decisions on your behalf should you no longer be
able to make coherent choices. This might happen if you were to become
incapacitated in a coma, for example, but still alive.
In most cases, people typically select a close family member or friend to take on
this responsibility but be sure you discuss your clear preferences with them
well in advance. Most states require you to sign, date, and notarize the
document before it can go into effect; an adult witness isn’t necessarily
required, but generally still advised.
● Living Will
A
living will, or advanced healthcare directive, specifically outlines the type
of medical treatment you prefer, rather than leaving the final decisions to the
power of attorney. If you fall terminally ill and do not want to be kept on
life support or feeding tubes, for example, you can make that known. You can
also include instructions for organ donation.
For
the document to be considered legally valid, it must be witnessed by two
adults; usually, family members and attending physicians are excluded.
Drafting
the Documents: Hire a Lawyer or DIY?
You
have two choices when it comes to putting all your affairs in order. Many
lawyers are offering virtual estate consultations over video call in which they
learn your key decisions and then fill out each document with proper legal
terminology so you can feel confident in an airtight estate plan.
However,
lawyers can cost anywhere between $150
to $300 per hour. In other cases, they might charge a flat fee ranging from
$300 to $1,500 to draft the will and
other basic documents. For that reason, many people have turned to online
do-it-yourself companies that make it very simple to accurately fill in your
information for a much cheaper price.
According to AARP, 23 states allow for online notarization before Covid and even
more have followed suit in response to stay-at-home orders and strict social
distancing precautions. You’ll have to research the laws where you live to
determine the permissible mechanics of executing these legally binding
documents. The good news is that most banks and post offices offer notary
services, and those businesses are generally considered essential and therefore
remain open.
Wrapping
Up
These
conversations are never easy, but you never know when disaster will come
knocking
at your door. Plan proactively so you and your loved ones can focus on spending
time with each other when or if someone falls ill, rather than scrambling to
create missing documents.
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