5 Estate Planning Steps to Take if You Receive a Serious Health Diagnosis

It’s something we hope to never have to deal with, but if you or your spouse have recently received a serious health diagnosis, it’s time to make sure your estate plan is up to date. If you haven’t thought about estate planning in a while (or ever), this can seem overwhelming, but having an experienced estate planning lawyer on your side can make all the difference.

If you have received a serious health diagnosis and are thinking about your estate plan, here is some advice on what to do next:

• If you don’t have an estate plan, make one now. If you do not have an estate plan, you are not alone. A 2017 study from Caring.com found that 6 in 10 Americans do not have a will or estate plan. But if this is you, it is time to take action now.Usually, a serious health diagnosis, whether of a chronic or terminal condition, spurs people to take action on estate planning. If you have children under 18, you will need to make arrangements for who would take care of them if you pass away or become incapacitated. You will also need to make arrangements for the distribution of your assets, name beneficiaries, and designate powers of attorney for both your healthcare and finances.
• If you do have an estate plan, review it and make necessary updates. If you do have an estate plan – excellent. You are ahead of more than half of the U.S. population. However, estate plans are not something you can set and forget; they need to be updated every time you experience a life change. Have you or one of your beneficiaries (or trusted advisors) recently gotten married or divorced? Have you welcomed a new child or grandchild? Has your financial situation changed? These are indications you need to revisit your estate plan. If you have recently received a serious health diagnosis, its time to check in and make sure everything is in order in case the worst happens.
• Create a living will and designate a healthcare power of attorney. If you have received a serious health diagnosis, two very important pieces of an estate plan are a living will and a healthcare power of attorney.A living will is a document that outlines your wishes in regards to your healthcare should you become unable to articulate them yourself. In a living will, you will indicate your instructions around do not resuscitate (DNR) and do not intubate (DNI) as well as medical treatments you do or do not want to be performed. A living will takes the pressure off your loved ones to guess your preferences, which is particularly important during a difficult and stressful time.A healthcare power of attorney is a trusted person you designate to make medical decisions on your behalf should you become incapacitated. Be sure to talk with this person starting now about your wishes so they are prepared to take on this responsibility if and when they need to.

  If you have a trust, you may consider handing over some or all day-to-day financial responsibilities to your trustee so you can maintain focus on your health. If you do not have a trust, a financial power of attorney can also take on these responsibilities.

• Ensure your documents are in order. Now is a good time to make sure all of your documents are in order so, if something should happen to you, your loved ones aren’t left to dig through file cabinets for important paperwork. Gather and make copies of your birth certificate, social security card, all insurance policies, tax documents, mortgage documents, retirement and/or pension plans, deeds and titles to property, investment information, marriage certificate, utility and bank account information, and contact information for important people like your estate planning attorney and financial planner. Then, let your loved ones know where to find these documents if and when they need them.
• Make sure nothing falls through the cracks. There are a lot of things you may not think of during this stressful time that need to be put in order in case the worst happens.Here is a list (by no means exhaustive) of some of the little things that are easy to miss when getting your affairs in order: Collect sign-in information for your online accounts (think Paypal, Amazon, email, social media, and any business websites) and put it in a safe place. Let your executor or another trusted advisor know where to find this information. Review beneficiaries on retirement accounts and insurance policies. Make sure these still align with your wishes. Outline wishes you have for your children and anything instructions you have for them or their guardians. Write down any wishes you have for a funeral or remembrance ceremony and burial or cremation instructions.

Receiving a serious health diagnosis can be extremely overwhelming. Your first priority should be your health, and having the right team around you will help ensure you need to worry as little as possible about your estate plan. An experienced estate planning lawyer like Paul Margerie can help you make sure nothing falls through the cracks. Serving customers with superior estate planning, wills, trusts, and power of attorney guidance in Milwaukee, Wauwatosa, Brookfield, Elm Grove, Waukesha, and surrounding communities. Give us a call to get started today.