It’s advisable that everyone has an estate plan regardless of their age or financial situation. You don’t need anything complex to write an estate plan in California. This document details what you want to happen to your property when you die or become incapacitated. Incapacitation is an issue that some forget about when they are putting off their estate plans.
Healthcare power of attorney
Your healthcare power of attorney makes healthcare decisions on your behalf when you aren’t able to. Most people want to choose whom gets this power, which is one of the reasons it’s essential to write an estate plan.
General power of attorney
A general power of attorney has permission to make financial decisions for you when you aren’t able to. Although you might not have investment accounts, you still have bills to pay.
Pets and other property
If you have pets, you may want to make arrangements for them to find a loving home after your death. Other property to include in your estate plan are social media accounts, collectibles, electronics and digital property.
Opening the conversation with your parents
Some people go into old age without an estate plan or a strong financial plan to support them during their older years. Another potential problem is one of the early warning signs of Alzheimer’s and dementia is becoming financially irresponsible. If you notice your once-responsible parent has started to miss payments, rack up credit card debt or make other financial mistakes, then they might have Alzheimer’s or dementia. As uncomfortable as starting a conversation about finances can be, it’s a good idea to discuss the important topic of estate planning with your parents. If they die without an estate plan, the state will divide their belongings based on intestacy law.
It’s possible for you to have an estate plan even if you’re financially struggling. You could name your powers of attorney and what you want to do with your social media accounts, computer files and other important property.
