By Jon Carroll
The New Year is a time when we naturally consider the future through our goals and resolutions. Estate planning is a future focused consideration that can be easy to overlook during this time, but the New Year presents an opportunity to discuss your estate planning goals with your family. Such a discussion can spare loved ones confusion, expense, and extensive court involvement later. Importantly, estate planning is not one-size-fits-all. The topics that matter most often depend on where a family is in life.
Estate planning is not only about death. Adults of all ages should consider who would make financial and medical decisions if they became incapacitated. Durable powers of attorney and healthcare surrogates are especially critical for single adults and ageing parents, but they are equally important for younger adults who may assume these issues are far off, as we never know what tomorrow may bring.
For families with young children, one of the most important estate planning-related discussions is guardianship. A declaration of pre-needs guardianship allows parents to nominate who should raise their children if both parents pass away. Without this planning, the decision is left to a judge. These conversations are deeply personal, but addressing them early provides clarity and peace of mind.
As families grow and change, beneficiary designations should be reviewed. Marriage, divorce, the birth of a child, a child reaching the age of majority, or the death of a loved one can all make existing designations outdated. Retirement accounts and life insurance policies pass by beneficiary form, not by will, meaning these assets do not go through probate when there is a designated beneficiary. Failing to update beneficiary designations after life changes can be the source of unwanted surprises.
For most families, their home is their most valuable asset. Discussing how property is titled, whether individually, jointly, or in trust, is important in determining how and to whom your home will pass upon your death. This becomes especially relevant for couples, blended families, and those acquiring property later in life. Florida permits homeowners to execute what is known as a “Lady Bird Deed” enabling one’s home to pass automatically without needing to go through probate. This can be a great planning tool for a single individual or someone with adult children. It is worth noting that when talking about your primary residence, Florida’s constitutional homestead protections may also dictate how your property can be distributed.
As parents age or family circumstances evolve, additional planning topics may arise, including long-term care concerns, adult children with special needs, or second marriages. These issues are often best addressed proactively, rather than during a crisis.
At every life stage, someone should know where important documents are kept. A valid estate plan is only helpful if it can be found. You should make sure that the executor of your will knows where you keep the document and how to access it upon your death. Letting a trusted person know the location of a will, powers of attorney, and healthcare documents can save months of court involvement.
A New Year’s conversation regarding estate planning does not require sharing financial details or touching on every topic at once. Because every family is unique, the focus and extent of the conversation can differ from one household to another. Taking time now to discuss the topics most relevant to your stage of life with your loved ones may be the most meaningful gift you can give, clarity, preparedness, and fewer surprises for those you care about the most.
Jon Carroll is a licensed attorney. The information in this column is provided for educational and informational purposes only, and does not constitute legal advice, nor establish an attorney client relationship. Consult a qualified attorney in your jurisdiction for legal advice specific to your situation.
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