Do You Need An Estate Plan?

To answer this question, take the "two finger" test. Place your two fingers on the inside of your wrist. If you feel that thumping sensation, it means you are alive and the answer is "yes".


In all seriousness, estate planning is critical for people of all ages (as long as you are over the age of 18). Unless you can guarantee that you will not die or ever become disabled (mentally or physically), you need an estate plan. Traditional estate planning used to consist of a Last Will and Testament to pass assets to family members after death. Maybe it also included a basic power of attorney. Modern or proactive estate planning is about so much more. It is about taking the necessary steps to protect yourself, your loved ones and your assets from creditors and predators (including taxes, in-laws, lawsuits and nursing homes) should you become disabled and then when you pass away. It is about making sure that you remain in total control while you are alive and well. It is about ensuring that your personal instructions will be followed by your family, friends or helpers should you become disabled. And, finally, it is about ensuring that your assets will pass to your loved ones the way you want them to quickly and easily after your death.


Traditional estate planning does not work anymore because life has changed. In the old days, people lived and then death came quickly. Now, with advances in medical science, people are living longer, but often with a decline in their mental capacities. So many people think that they have completed their planning and have protected themselves because they have a Will. If you are in that category, ask yourself this question: "If a Will is not effective until after I die and it is admitted to probate, how effective is my Will if I become mentally incapacitated?" It's not. That's the main reason why Wills don't work anymore. There's a whole period of time when the Will is not effective. That period is your life.