Nobody likes to think about planning for when we’re gone or not able to care for ourselves anymore, but it is something you kinda have to do. There’s all these different documents you’re supposed to have, like wills and trusts and durable powers of attorney. What are they, and what should you have as an FRS Special Risk participant or retiree?

It all starts with a will. Your last will and testament outlines how you want your assets distributed after your death. It also includes naming an executor, or in Florida, we refer to this person as a “personal representative,” who carries it all out. Having your will, along with the other documents we’ll talk about, is really about control—you having control over what you want to have happen. With a will, you can distribute your assets any way you wish and set up guardians for any minor children. Your will can reflect your burial or cremation instructions, and it allows your family the comfort of knowing they are taken care of after you’re gone.

Do you HAVE to have a will? Absolutely not. But without it, you lose control of how your assets are distributed and who will receive them. You’re leaving it to the state and the intestate laws to determine who will inherit your property using family lineage and percentage formulas. You lose the choice in deciding whether or not to include or exclude relatives and how much beneficiaries receive from your estate. And if there are minor children involved? Without a will, you’re leaving their guardianship up to the state. They literally could end up in a foster home without you having a will stating what your preference is.

Having a revocable living trust kinda takes that idea about you having control in your will up a notch. When you establish your revocable trust and transfer assets into it, you’re setting up a separate entity, attached to you while you’re alive, but it lives on after you die. You don’t lose any control over the assets in the trust while you’re still alive, but after you’re gone, the trust will govern those assets according to whatever your wishes were.

Another advantage a revocable trust gives you is that the assets inside the trust avoid probate.

Remember how it’s all about you having control? Just having a will and a revocable trust isn’t enough. Supplemental documents complete the picture because they control what happens while you are still alive. And the most common supplemental documents we see are a durable power of attorney, a designation of health care surrogate, a HIPAA release authorization, and a living will.

A durable power of attorney is a form that allows someone you appoint to manage your financial affairs, either immediately or sometime in the future should you become mentally or physically incapable of doing it yourself. It helps you plan for medical emergencies or maybe declining mental functioning. Having a durable power of attorney really helps eliminate confusion when a family member needs to step in to handle the finances.

Somewhat similar to a durable power of attorney is a designation of health care surrogate in that this document allows a person you designate to make medical decisions on your behalf. Got someone in the family or a friend that’s good with doctors and health issues? Might want to consider naming them to be your health care surrogate. But talk to them first!

With a HIPAA release, you will name one or more persons who will be able to have access to all of your medical information.

And finally, a living will allows you to state whether you want your life to be artificially prolonged or whether you prefer to be allowed to die naturally. Without this document, you must be kept alive artificially no matter what your true wishes are or how much it dips into your family finances.

After more than 24 years of helping clients achieve their most important goals here at Northstar, the one thing we’ve learned without a shadow of doubt is that when it comes to estate planning, the number one obstacle is procrastination—just getting it done. We’ve learned that it’s essential to work with an experienced estate planning attorney to ensure these documents are drafted properly and reflect your wishes accurately. Additionally, periodically reviewing and updating your estate plan to account for any changes in your circumstances or the law is equally important.

We’re here to help. We have relationships with quite a few outstanding estate planning attorneys we can refer you to, depending on what your needs are and how complex your situation might be. I hope you found this helpful. If you want to talk more, feel free to give us a call. We’d love to hear from you.

Thanks for watching, and stay safe!