With October beyond us, it is time to start thinking about the Holiday Season and winter travel plans.
Going on vacation entails lots of planning: packing luggage, buying plane tickets, making hotel reservations, and confirming rental vehicles. But one thing many people forget to do is plan for the worst. Traveling means you’ll likely be at higher risk than usual for illness, injury, and even death. More than 30 million people are expected to travel by airplane alone. According to the New York Post, drinking water on a plane can put you at risk of getting sick.
Considering this reality, you must have a legally sound and updated estate plan in place before taking your next trip. If not, your loved ones can face a legal nightmare if something should happen to you while you’re away. The following are four critical estate planning tasks to take care of before departing.
1. Make sure your beneficiary designations are up to date
Some of your most valuable assets, like life insurance policies and retirement accounts, do not transfer via a will or trust. Instead, they have beneficiary designations that allow you to name the person (or persons) you’d like to inherit the asset upon your death. You must name a primary beneficiary and at least one alternate beneficiary in case the primary dies before you. Moreover, these designations must be regularly reviewed and updated, especially following major life events like marriage, divorce, and having children.
2. Create power of attorney documents
Outside of death, unforeseen illness and injury can leave you incapacitated and unable to make critical decisions about your own well-being. Given this, you must grant someone the legal authority to make those decisions on your behalf through a power of attorney. You need two such documents: medical power of attorney and durable financial power of attorney.
The medical power of attorney gives the person of your choice the authority to make your healthcare decisions for you, while durable financial power of attorney gives someone the authority to manage your finances. As with beneficiary designations, these decision-makers can change over time, so before you leave for vacation, be sure both documents are up to date.
3. Name guardians for your minor children
If you’re the parent of minor children, your most crucial planning task is to legally document guardians to care for your kids in the event of your death or incapacity. These are the people whom you trust to care for your children—and potentially raise them to adulthood—if something should happen to you.
4. Organize your digital assets
If you are like most people, you probably have dozens of digital accounts like email, social media, cloud storage, and cryptocurrency. If these assets aren’t adequately inventoried and accounted for, they’ll likely be lost forever if something happens to you. At a minimum, you should write down the location and passwords for each account, and ensure someone you trust knows what to do with these digital assets in the event of your death or incapacity. To make this process easier, consider using LastPass or a similar service that stores and organizes your passwords.
Complete your vacation planning now
If you have a vacation planned, be sure to add these four items to your to-do list before leaving. And if you need help completing any of these tasks—or would like us to double-check the plan you have in place—consult with us as soon as possible.
We recommend you complete these tasks at least eight weeks before you depart. However, if your trip is sooner than that, call and let us know you need a rush Family Wealth Planning Session, and we’ll do our best to fit you in as soon as possible. Contact us today to get started.
This article is a service of Ruberg Law PLLC. We don’t just draft documents; we ensure you make informed, empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Planning Session during which you will get financially organized and decide what YOU want for YOUR family. You can begin by calling our office today to schedule your Planning Session at no charge.