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There are many misconceptions about estate planning. Perhaps the most universal fallacy is that you must have a grandiose “estate” to consider planning for the future. Estate planning is for anyone with assets, including real estate properties or something as simple as a bank account.
Within the parameters of estate planning could be a Living Will, a Health Care Directive, and anything else you might want someone to make decisions about in the event you become incapacitated. An estate plan can determine how you want to direct the division of any assets at the time of your death. "An estate plan that just includes a will is not planning for everything,” explained Eleanor Washburn, Attorney-at-Law with Charleston Estate Planning Law Firm.
"There are various powers of attorney that need to be considered. A power of attorney that appoints someone to handle your financial affairs in the event of incapacity is important. In addition to the financial power of attorney, a healthcare power of attorney allows you to appoint someone to make healthcare decisions for you based on your wishes in the event that you can’t.
" The South Carolina Health Care Power of Attorney form and the South Carolina Declaration of a Desire for Natural Death form allow you to express your wishes concerning end-of-life healthcare treatment, which is commonly referred to as Advance Directives or Living Will. Do you want life-sustaining treatment, such as a ventilator, to prolong your life if you have a condition that is incurable or irreversible? Do you want your life prolonged by tube feeding under those circumstances? These are some of the decisions that you can express through a Health Care Power of Attorney or the Living Will. Hospitals, these days, want to know if you have a Health Care Power of Attorney that appoints your agent and expresses your preferences regarding care before they admit you for any hospital stay or surgery.
In the absence of a Health Care Power of Attorney, South Carolina law under the Family Medical Consent Act provides that those who may make health care decisions for a patient who cannot consent must do so in the order of priority. For example, the law provides that in the absence of a Health Care Power of Attorney, parents can make health care decisions for an adult child who is unmarried and has no adult children themselves; if the patient is married with no adult children, the spouse has priority to make healthcare decisions; if there is no spouse, a majority of the children can make decisions. A problem can arise if the parents don’t agree or if there is a tie among the adult children.
A Health Care Power of Attorney can avoid these potential conflicts. Understandably, medical personnel want to know who will make critical medical decisions. "What I encourage in terms of healthcare," said Washburn, "is that you provide a copy of the Health Care Power of Attorney to the person that you have appointed, as well as to any alternates that you have appointed so that in an emergency, your agents have a copy of everything.
" Additionally, she advises that you provide copies to your doctors. Setting up trusts for your loved ones is a way to avoid probate court, and an estate planning professional can easily handle it. Make sure to use an attorney who is aware of the state laws that govern the particular details specific to where you live.
Most national firms do not engage in estate planning because laws vary widely from state to state. While we often think of guardianship in relation to young children, incapacitated adults or adults with special needs usually need guardians and conservators as well. A reputable estate planning firm can represent clients seeking guardianship and conservatorship of friends or family members who can no longer manage their own personal or financial affairs.
Your estate planner should also assist any guardians and/or conservators in fulfilling their duties. Losing a spouse is a particularly devastating moment in life and happens far more frequently in the senior community. You never imagine your life without your partner, and if you’ve recently lost a spouse, navigating financial and legal matters can feel overwhelming.
However, the Portability Election is one crucial estate planning tool that could help you and your family save significant money on estate taxes. "This option allows a surviving spouse to ‘inherit’ their deceased spouse’s unused estate tax exemption, potentially reducing or even eliminating future estate taxes,” explained Washburn. "The IRS has made changes that give families more time to take advantage of this tax-saving opportunity.
Understanding how Portability Elections work and whether they apply to your situation can make a meaningful difference in your family’s financial future.” Any collectibles you own, be it art, cars, first-edition books or valuable baseball cards, for example, should be well-documented in any estate plan. It’s an opportunity to preserve not only the value of these items but also their personal significance to you and your family.
Instead of leaving their future uncertain, you can ensure your collection is cared for and enjoyed by the right people or organizations, reflecting the meaning it holds for you. A treasured friend might be a recipient, or you may wish to donate to a museum or library. A strong estate plan helps you to manage and preserve your assets during your lifetime, ensures your assets are efficiently distributed according to your wishes, and protects your loved ones and their inheritances well after you are gone.
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