Death is an undeniable aspect of the human experience, yet it remains one of the least discussed subjects in our society. We avoid talking about it, even though we’re surrounded by death all our lives, and it’s the final transition we go through. By avoiding the topic of death, we miss out on opportunities to grow both personally and in our relationships with others. It’s only by confronting it head-on that we can truly find peace in the face of this inevitable transition.
Main Causes of Fear Surrounding This Transition
There are many reasons why thinking of our final transition might be scary, but one of the main causes could be that staying silent about it does us no favors. After all, we “fear the unknown,” and death is one of the greatest unknowns in life.
Grief may also impact our view of death. However, a big part of the pain of grief – again – is the fact that people don’t talk about it. When a loved one is no longer with you, you should talk about them to the people closest to you. To tiptoe around the elephant in the room is painful for everyone involved. The person you lost was a life – and, in many cases, a major part of your life. You can and should grieve that for as long as it takes.
It’s also important to prepare your kids for death by being honest about the reality of it.
If you can, start slow by saying that you’re sad because a pet died – or your friend died. If you’ve experienced a death in your family, letting your child be involved in the memorial can bring a great deal of peace, too. As is true in many other areas of communication, age-appropriate honesty and clarity are good rules of thumb.
To find peace in the face of death, we need to embrace our mortality and realize that this transition will happen to us one day. Acceptance and surrender are key parts of the process. By acknowledging that death is part of life, we can begin to let go of our fear and resistance. It is through acceptance that we can find meaning and purpose, knowing that our time is limited.
This allows us to prioritize what truly matters and live life to the fullest. Each moment becomes more precious, and we become more present and engaged.
Part of this is also to “death-proof” your life. Another reason death could scare us is because we don’t want life to end – we have so much left to do!
But if you live every day as if it’s your last by not putting things off, you will minimize the regrets you have as you face death. This also helps prevent regrets your loved ones could have from strained relationships. Treating every day as if it’s your last – and dealing with your unresolved anger – can be a huge step in the right direction.
Ruminating on death – as strange as it may sound – can also help. Caitlin Doughty of “Ask a Mortician” has an informative YouTube channel dedicated to unpacking death. She talks about historical and cultural traditions surrounding death and more.
You can plan for the practical aspects of death by asking yourself:
Do I want to be cremated, buried naturally, or embalmed – or something else?
What do I want my funeral service(s) to be like?
Is there anything I’d like in my casket (if not cremated)?
What pictures do I want to be shared at my funeral? (Create a shared album!)
What songs do I want to be played at my funeral? (Create a playlist!)
What do I want to be remembered for?
What do I want my obituary to say? (Write it yourself!)
Finding Peace in the Face of Death
Several strategies can help us find peace when confronted with the reality of death. Meditation and mindfulness can be powerful in fostering a sense of calm and acceptance. By focusing on the “now” and accepting our thoughts and emotions without judgment, we can remember the impermanence of life and find peace.
Connecting with nature is another effective way to find solace in the face of death. Time outdoors, surrounded by the beauty and wonder of the natural world, can remind us of the cycles of life and the interconnectedness of all living things. Nature has a way of putting things into perspective.
Spiritual guidance can also provide comfort and support. Whether through religious practices or personal beliefs, spirituality helps us understand and navigate the mysteries of life and death. Connecting with something greater than ourselves can bring a feeling of peace and purpose.
Support Systems
Strong support systems are vital throughout our lives. Family and friends can provide a great deal of emotional support and companionship during difficult times. Sharing our fears, worries, and emotions with loved ones can lighten our burdens and help us feel less alone in our journey.
Our support systems help us celebrate new life – and they help us cope with life lost. When loved ones have been on the brink of death (or even approaching unknown circumstances in their lives), friends and family show up early in the morning and late at night to support us, share resources, and provide light in an otherwise dark time.
If you’ve recently lost a loved one and have no idea what to say when they tell you, “Let me know if you need anything” (or if you’re the one asking), we’ve got you! Keep reading to learn how to sign up for our newsletter, where you can get helpful resources like “15 Ways You Can Help a Friend Who is Grieving the Loss of a Loved One”! (Coming soon!)
Therapy and counseling can also help you navigate the complex emotions that crop up when confronting death. A trained professional can provide guidance and help you process your feelings, offering tools and strategies for finding peace and acceptance. (Real talk: when April’s mother-in-law died, her therapist was the first person she called after the funeral home.)
Support groups are another valuable resource. Connecting with those who have experienced similar loss or are facing their mortality can provide a sense of belonging and understanding. Sharing stories can be cathartic and can offer new perspectives about your experience.
Legacy and Leaving an Impact
Thinking about our legacy is another way we can find peace. Documenting our personal stories, whether through writing or other self-expression, can help us reflect on our lives and leave a lasting impact. By sharing our experiences, wisdom, and lessons learned, we can inspire others. If you wonder what you’d be leaving unsaid if you died tomorrow, writing it out and leaving a message for the people you love can put your mind at ease.
Acts of kindness and service are another meaningful way to leave an impact. By choosing acts of love and compassion, we create a ripple effect that goes far beyond our own existence. Small gestures of kindness can bring comfort and joy to others, and they can also bring us a sense of fulfillment and purpose.
Building relationships is also crucial in finding peace in the face of death. Nurturing connections with loved ones and building meaningful relationships allows us to leave a lasting impact on the lives of others. When we invest in our relationships and foster deep connections, we can find solace in the knowledge that we have made a difference in the lives of those we love.
Maya Angelou once told a beautiful story of her Uncle Willie and the legacy he left. Chances are that her uncle never knew the great impact he left – not only on his niece but on the other people he interacted with.
Legacy is something that we are always unintentionally building. Build it well!
Finding Peace Through Planning for the Future
Embracing the journey and finding peace in the face of death is a deeply personal and transformative process. Acknowledging the reality of our mortality and embracing death as an integral part of life helps us find solace. Through practices like meditation, connecting with nature, seeking spiritual guidance, and leaning on our support systems, we can navigate the complex journey of confronting death.
Leaving a positive legacy and cultivating meaningful relationships can bring a sense of purpose and fulfillment. Ultimately, by embracing the journey and confronting death with an open heart and a willingness to explore the unknown, we can find peace, growth, and enlightenment.
When it comes to estate planning, you’ve probably heard advice like, “You need a trust” or “Avoid probate at all costs.” While these ideas might hold true for some, not everyone needs a trust, and probate can sometimes be an appropriate step. Understanding these topics can help you make informed decisions for your family. Let’s break down why:
What Is a Trust?
A trust is a legal arrangement that allows you to transfer assets to a Trustee. This person manages the trust for those you want to benefit. One of the advantages is that it helps avoid probate—the court-supervised process of transfering your assets after death. Trusts can provide an additional level of privacy, speed up the transfer of assets, and offer protection for your loved ones in difficult times.
Disadvantages of a Trust
While trusts offer many benefits, they aren’t essential for everyone. For example:
Trusts Can Be Expensive Setting up a trust requires meeting with an attorney to prepare the trust documents and potentially hiring professionals to administer it, which can be costly. For some individuals, these expenses outweigh the potential benefits, particularly if there are simpler ways to achieve the same goals. For example, if your family is in agreement, the Court can waive the requirement of making your assets public.
Trusts Need Active Management Once a trust is created, it needs ongoing attention. You have to transfer assets into the trust, update it as your financial situation changes, and ensure that it remains aligned with your wishes. This level of involvement is unnecessary if simpler tools can efficiently achieve your goals.
How to Save Money on Your Estate Plan with a Will vs. Trust
You’ve probably heard that you want to avoid probate. But in many cases, it’s not as bad as you may think. In fact, sometimes it’s a good thing!
In Some States, Probate Is Streamlined Each state has its own process for probate. Some states, like California and Florida, are complex enough that having a trust is a good idea for most people. However, in Tennessee, probate can be relatively quick, inexpensive, and straightforward, making it less of a concern. Of course, it’s a good idea to listen to your attorney about what is best for your family.
It Provides Oversight Probate ensures that a court oversees the distribution of assets, which can be beneficial for resolving disputes or ensuring that creditors are paid. For families with potential disagreements, this legal oversight might prevent further conflicts.
Not All Assets Go Through Probate Assets such as life insurance policies, retirement accounts, and some jointly owned property pass directly to beneficiaries. If your estate consists of these types of assets, putting them in a trust may not make much sense. In fact, many people structure their estate planning so that nothing will go through probate and then use a will as a back-up plan. (Because you know we always want to have a back-up plan!)
Is a Trust Right for Me?
While it may not be for everyone, a trust may be a good choice if:
You have a large or complex estate.
You own property in multiple states (which could trigger probate in each state).
You want to maintain privacy regarding the distribution of your assets.
You have minor children or beneficiaries who require special care.
Depending on your situation, your attorney may even recommend using a trust as a part of your will, which can be less expensive and time-consuming than creating a stand-alone trust.
Estate planning is not one-size-fits-all, and the decision to create a trust should be tailored to your unique situation. Your estate planning attorney should be able to help you weigh the costs and benefits, address any “what ifs, and explain how the plan reflects your goals. Ultimately, the key is to create a plan that provides peace of mind for you and your loved ones, whatever form that may take.
If you have questions about trusts or other estate planning tools, reach out to our office. We’re here to help you navigate the process and make the best choices for your future.
Last week we looked at red flags you should pay attention to with regards to caregivers and professionals in your network. This week we’ll look at how to prevent abusive caregiver situations and how to deal with abuse once it has occurred. Below are some actions you can take to guard against people in your network taking advantage of you.
Things you can do now:
Take advantage of your free yearly credit report.
You can get a free credit report from each of the three credit reporting agencies (Experian, TransUnion and Equifax). Hot tip! Space them out! Sign up to get one every four months. This will make it easier to discover any irregular activity fairly quickly.
Ask your banker if they have completed the “BankSafe” program from AARP.
BankSafe is a training platform designed to help financial professionals identify and stop suspected exploitations from caregivers. Ask your bank if they have participated in this training. If your bank has not had this training, encourage them to do so! Or consider moving funds to a bank or credit union that has already participated.
Budget for paid assistance.
Remember that as much as family and friends may want to help, sometimes they can’t. It’s important to make sure that you are able to afford assistance for things like traveling to appointments, grocery shopping, laundry, nutritious meals, cleaning, and other personal help you may need if you were injured or developed a medical condition. Endeavor to have enough of your retirement savings to ensure you can afford a positive work environment for your future caregivers.
Create a Durable Power of Attorney
Create a Durable Power of Attorney.
This Power of Attorney allows someone you trust to monitor and manage your finances, if needed. This could be a family member or close friend. With access to bank accounts and credit card statements, they should be able to notice quickly if your spending habits change or if there is fraudulent activity on your account and they’ll be able to file a claim to protect your money!
Things to keep in mind for later:
Listen to your loved ones.
If you have a caregiver that is not in your family, do yourself a favor and trust a loved one’s opinion if they sense unsettling behavior from that caregiver. Sometimes others are able to see things that we are too close to observe.
Don’t become too reliant on one person.
You can have a housekeeper come every other week to clean the surfaces, a home health nurse to check on your health, and a food delivery service to prepare your meals or deliver groceries. Surround yourself with people who like their jobs.
Let family and friends know you welcome their visits and calls.
Tell them what has been going on in your life and find out what is going on with them. Maybe a few favorite snacks in the cupboard will even bring the grandkids by.
Let family and friends know you welcome their visits
Don’t give up your routines.
Self-care is so important, we all know that! If you feel yourself falling into a slump, get outdoors, go to the store, call a friend or ask someone for help. You deserve to be loved and to love yourself. No matter what anyone says, you are the conductor of your life.
“Stranger danger” isn’t just for children.
As adults we get comfortable interacting with all kinds of people, but remember that not everyone has your best interest in mind. Beware of helpful people who appear out of nowhere! Trust your instincts and listen to your inner-voice.
Don’t keep secrets.
If anyone tells you to keep a secret from your friends or family, something is very wrong. Red alert!
Report anyone who threatens to physically harm you.
Call the police and tell your trusted loved ones. There are no second chances when it comes to your personal safety.
Practice being assertive with others
Remember that “no” is a complete sentence.
If you are a people pleaser, practice different ways of saying “no” so you’ll be more comfortable in situations where you need to say it.
This week we are going to talk about why you need a medical power of attorney, even if your spouse is available to make decisions for you.
In a medical emergency, there is an assumption that your spouse would be the health care agent, make health care decisions, and deal with the hospital and doctors on your behalf. However, what happens when a spouse is separated, no longer wants to be in contact, or doesn’t agree with your health care values?
If this happened to you, would you still want them to make decisions for you? Do you want your adult children to make medical decisions for you? What if your spouse and children disagree on what type of treatment(s) you should receive? When faced with an emergency, please consider having your medical Power of Attorney already in place.
What happens if you don’t have a Medical Power of Attorney?
There are many situations that can arise when you become incapacitated or have a healthcare emergency. Even if it seems unlikely that your spouse would be disinterested in your health, it’s important to remember that your spouse may have trouble thinking clearly in an emergency or may also be seeking medical care. A medical Power of Attorney with an agent that is capable of making medical decisions, even in an emergency, can lower the risk and confusion regarding your medical decisions.
What is a Medical Power of Attorney and why you need one.
A medical Power of Attorney, also known as a Durable Power of Attorney for Healthcare, is a document that allows you to appoint someone as an “agent” to make decisions about your health care. This agent will make decisions on your behalf if you become too ill or incapacitated. A medical Power of Attorney ensures that your wishes will be followed. We have an experienced estate planning and probate attorney here in Nashville who can help you customize these decisions and record how choices will be made.
Choose someone you trust to make medical decisions for you.
How to choose the best Agent for your situation
When you are choosing your medical agent for your Medical Power of Attorney, it is important that you choose someone you can trust to adhere to your preferences regarding your medical care. Discuss your wishes with your agent before they need to make any care decisions. Make sure that you have confidence that your Agent will make the right decisions about things you two have not discussed.
Don’t wait to create your medical POA.
Conclusion: Why everyone needs a Medical Power of Attorney
It is important to think about what you would want in a medical emergency. Do you want your spouse to always make decisions for you?
Designate ONE person authorized to make decisions for you if you are unable to make or communicate your wishes. Even if you want your spouse to make those decisions, it’s always a good idea to have a “backup” person. This backup person can help out with decision-making in case your spouse is unavailable when someone needs to step in.
Whatever you decide, you should have a Medical Power of Attorney. Write your power of attorney in conjunction with your advanced directive (also known as a living will). All of these documents are an important part of a well-thought-out estate plan.
Do you have a plan for emergencies? Do you want help putting your values on paper? Take our Virtual Estate Planning Challenge! This 7-part Challenge helps you brainstorm the important stuff before creating your estate plan. We had a ton of fun making it and think you’ll really benefit from it too.
One concern I frequently hear is a worry that the government will take assets from a loved one or take assets from an estate instead of family members inheriting it. These are valid concerns because there are specific instances where this can happen, but as a general rule, the government DOES NOT take assets unless they have a legal reason for doing so.
The State of Tennessee will not take your assets
There are a few instances where the government will take your assets if you die without a will. For example, if someone received Medicaid (TennCare) to pay for long-term care, if they owed back taxes, or if no family members can be located. But, as a general rule, the State of Tennessee is not going to take your assets.
Tennessee will find your closest heirs
The State of Tennessee has a statute that lays out how your assets will pass if you die without a will. Your assets will pass to what we call your heirs at law. Those are really the people that you probably think of as your closest relatives: your spouse, your children, your grandchildren, your parents, your siblings, your nieces and nephews, your cousins, and farther out. But it’s the close relatives that the state will seek out.
Generally, the government is going to look for anyone related to you before they get any money. I hope that sharing this information with you has given you a sense of relief if you were told inaccurate information elsewhere.
If you have other questions about your estate or that of a loved one, click here to schedule a call with us.
Hey there, Nashville and Middle Tennessee! Estate planning might sound like a snooze-fest, but it’s super important for everyone, no matter your background or family situation. The LGBTQIA+ community has faced some unique challenges over the years, and there’s a lot we can learn from their experiences about protecting our loved ones and making sure our wishes are honored. Let’s dive into some valuable lessons that can help all of us.
Lesson 1: The Importance of Legal Documentation
The LGBTQIA+ community has had to fight hard to make sure their chosen families are recognized legally. Without the right legal documents, like wills, trusts, and advance directives, partners and chosen family members often couldn’t make medical decisions or inherit property. This highlights how important it is for everyone to have these documents in place! It’s all about making sure your wishes are clear and legally binding, so your loved ones are protected and have access to you when it’s most important.
Lesson 2: Understanding Intestacy Laws in Tennessee
Intestacy laws decide how your stuff gets distributed if you pass away without a will. In most states, these laws favor relatives by blood and marriage, causing a lot of heartache and disputes when those avenues aren’t available. That’s why it’s crucial for everyone to understand how Tennessee’s intestacy laws work and to take steps to create a valid will. This way, your assets go to the people you choose, not just your blood relatives.
Lesson 3: The Role of Advance Directives in Medical Decision-Making
One major lesson from the LGBTQIA+ community is the importance of advance directives for medical emergencies. Without a healthcare power of attorney or living will, medical professionals might turn to biological family members who might not know your wishes (or just not want to follow them). By creating these documents, you can make sure your trusted person makes decisions for you, ensuring your wishes are followed and your MVPs are involved in your care.
Lesson 4: Protecting Shared Assets and Property
For most couples, shared assets and property are a big part of their lives. Without proper estate planning, these assets can be at risk. This is a lesson for everyone in Middle Tennessee: make a comprehensive estate plan that includes wills, trusts, and property agreements. This helps protect your shared assets and ensures they go to the right people, avoiding legal disputes.
Lesson 5: Marriage Equality and Estate Planning
The legal recognition of same-sex marriages has been a huge win, giving all couples the same rights as heterosexual couples. But marriage equality alone doesn’t cover everything that your family may need. All married couples in Nashville and Middle Tennessee need detailed estate plans that reflect their unique needs. This includes updating beneficiary designations, creating wills and trusts, and setting up advance directives to outline and protect your wishes.
Lesson 6: Proactive Estate Planning for Legal Protection
The ongoing fight for LGBTQIA+ rights shows us that legal protections can change with political and social climates. This is a reminder for everyone in Nashville and Middle Tennessee to be proactive about estate planning. Stay informed about legal developments and work with knowledgeable professionals to create estate plans that offer peace of mind and security. Estate planning isn’t just about legalities; it’s about making sure your loved ones are cared for and your wishes are respected.
Conclusion
The LGBTQIA+ community’s history offers valuable lessons in estate planning for everyone in Nashville and Middle Tennessee. As we reflect on these lessons, take a moment to talk about your estate plan with your family. If you need to update your plan or start from scratch, give us a call! We’re here to help you protect your loved ones and build a secure future.
Last week we defined TennCare and how it applies to our clients. This week I want to go more in-depth with how TennCare serves Tennesseans with long-term care.
Many people believe that Medicare benefits will cover nursing home care once an individual is 65 or older, but this simply isn’t true. While Medicare covers the first 100 days, it doesn’t cover long-term assisted living. Read more about Medicare here.
“ Choices” is Tennessee’s Medicaid program for long-term care services and support
Back to TennCare/Medicaid…
My Mom doesn’t have long-term healthcare insurance. What are my options?
Payout of pocket until you run out of cash – This is an unrealistic option for most families. Nursing home care is expensive. Not a lot of people have an extra $7,000-$11,000 a month in their bank accounts.
Do a reverse mortgage on her home.
Qualify for the TennCare / Medicaid program called “CHOICES”.
As you can see, options 1 and 2 are very unpleasant and leave nothing left for a loved one’s legacy. However, option 3, CHOICES, is definitely something worth looking into.
What is CHOICES?
CHOICES is the category of TennCare that provides Long-Term Services and Supports (LTSS) such as nursing home care.
What is the process for getting qualified for CHOICES?
In order to be eligible to receive benefits from TennCare/Medicaid your loved one must first qualify within these three categories:
Medical eligibility
Income threshold
Asset threshold
Being medically and financially eligible is necessary for TennCare approval
How does someone become medically eligible for TennCare CHOICES?
The state of Tennessee will determine who is medically eligible to receive TennCare Long-Term Services and Support (LTSS) by using a pre-admission evaluation (PAE). This PAE is used to determine if the applicant can do basic life skills on their own without help. The PAE will also determine if the applicant is safe in their current environment.
The PAE is a strict evaluation and it is performed on a case-by-case basis. An applicant must receive a score of 9 or higher on a 26 point scale in order to be considered medically eligible for TennCare Long-Term Support Services.
For example, a caregiver or healthcare provider may be asked about a patient’s level of ability to do things and how much assistance is needed.
The following Activities of Daily Living (ADLs) are covered in the PAE evaluation:
Transfering
Mobility
Communication
Medication
Orientation
Eating
Behavior
If you or your loved one is unlikely to get to a nine or higher on the PAE, it is always appropriate to ask for a “safety determination” evaluation as an alternative route of becoming medically eligible for Choices.
How can someone become financially eligible to receive CHOICES?
You must be able to prove that the applicant has a low income and little assets. As of January 2022, an individual applying for TennCare CHOICES cannot have an income exceeding $2,523.00 per month. Additionally, the applicant cannot have more than $2,000 in assets. This includes any money in the bank and investment accounts but also requires consideration of retirement accounts, life insurance policies, real estate, artwork, jewelry, and any other valuables. When we talk about the assets for a couple of things get a little more complex. The most important thing is that both the applicant and their family are taken care of, both medically and financially.
My Mom is over the limits for income and assets? What do we do?
If the applicant is in excess of the amounts we can plan for that! We have a tool to help people who have excess income and assets yet need to qualify for TennCare/Medicaid called the “Care and Savings Assessment”. With this Care and Savings Assessment, we work to determine the best way to structure you or your loved one’s finances, either now or in the future. We plan so that our clients have the peace of mind knowing they can qualify for TennCare if and when they need it!
In conclusion
It is often helpful to have an attorney assess your financial situation and offer recommendations on how those finances may be restructured to qualify for TennCare Long-Term Services and Support (LTSS). As an experienced TennCare planning attorney, I can help you evaluate your risk and create a plan that takes care of everyone in the family.
Are you ready for help with TennCare planning? Contact us and we can discuss your plan. Next week we will go over some examples of how we restructure an individual’s finances to meet their needs for long-term care.
When one spouse wants to disinherit the other, but they are still married, it can be a complicated process. In most cases, disinheriting a spouse is only possible if you have a valid prenuptial agreement or if you are divorced.
Let’s illustrate this with an example:
Jack and Jill have been married for five years, and have one child together. Their house was purchased by Jill before they were married, and Jack’s name was never added to the deed.
Jill recently discovered that Jack is cheating on her with the Instacart shopper. She and Jack are now separated and have started the divorce process, but she wants to make sure that if she dies before the divorce is final that Jack won’t get anything from her.
What can Jill do?
Jill can disinherit her spouse after the divorce
Unfortunately, Jill cannot disinherit Jack until she files for divorce. Tennessee law does not allow you to disinherit your spouse- even if you write a will that says that! My advice is to get divorced as quickly as possible. Unless divorced, Jack is entitled to his share.
The good news is that once divorce papers have been filed, there will be an automatic injunction that specifies that the pair no longer have spousal rights on the property through marriage. This is primarily to protect things like bank accounts, real estate, relationships with the children, and health insurance coverage. However, all that does is prevent money from being spent by either spouse outside of regular expenses. Jill won’t be able to do anything, like estate planning, until after the divorce has been settled or through special permission from a judge.
In the meantime, there are still a few steps Jill can take:
Utilize her prenuptial agreement
Jack and Jill signed a prenuptial agreement prior to their marriage. In it, they waived the right to inherit from each other. All Jill needs to do now is to rewrite her will to specifically omit Jack.
Divide assets into separate trusts
Jill can establish a trust under her name and place the house in it. Since Jack’s name isn’t on the deed or on the trust, he has no right to the house if Jill were to pass before the divorce is finalized.
Rewrite her will
Jill can rewrite her will so that Jack only gets what he is entitled to by law, called his elective share. In Tennessee, spouses are entitled to a homestead allowance, a year of support, and elective share. The elective share amount depends on how long you are married.
Hire a family law attorney
The divorce will go much quicker with the help of a family law attorney.
Jill can get a jump start on planning her estate.
Finally, if Jill is preparing for a divorce, she can take advantage of all the legal documents at her fingertips and get a head start on creating the estate plan she desires. Once her divorce decree is finalized, she can meet with her lawyer and sign the document to make it valid.
Are you getting a divorce and want to start over with your own will and estate plan in Tennessee? Are you looking for a referral to a family law attorney? Let us know! We are happy to help you make plans for your new life. Not sure where to start? Give us a call. We offer a complimentary 15-minute call to see if we are the right fit for you and your situation. You can schedule your call by clicking here.
A Davidson County will and trust lawyer’s job is to make sure that you have all of your ducks in a row so that if you become incapacitated or die, your loved ones will know how to manage your estate and follow your wishes. Laws in Tennessee vary from those found around the country, which is why you want to work with an attorney who is skilled in understanding your specific needs. One area that should be considered is your service providers.
Make a list of your service providers and put it in your estate plan
“Service providers” covers a wide range of individuals involved in your life. Should you be unable to communicate with them, you want to ensure that your trustee, executor, conservator, or other responsible person is able to communicate with them on your behalf. Having them all listed in one place will make this job much more manageable.
Household Providers
This list should include all of the people or companies that you deal with when it comes to the maintenance of your home. In some cases, your home will need to continue to function in your absence, and your representative will need to be able to contact these people to make sure things keep running smoothly. In other cases, whether you are deceased or incapacitated, there are certain services that you may no longer need, and the person in charge needs to be able to contact the service providers and cancel with them.
Some examples of household providers that you will want to list might include:
Computer support
Food or water delivery
Gardening
Pet care
Housekeepers
Heating/Cooling system maintenance
Heating oil delivery
House sitters
Pest control
Pool or spa maintenance
Utilities
Vehicle maintenance
Basically, anything that you have performed on a regular basis should be noted, along with contact and payment information.
Medical Service Providers
You should also provide your representative with contacts for your medical service providers. This information could be very valuable should you need medical attention but be unable to reach out to these providers on your own. Additionally, if you have standing appointments with these providers, it will be helpful to have them canceled so you don’t accrue charges for services you’re not using.
Some of the medical service providers you may want to include on your list are:
Chiropractor
Counselor
Dentist
Massage therapist
Ophthalmologist
Physical therapist
Primary care physician
Psychiatrist
Specialists
Personal Service Providers
There are other types of regular services that you may use, and you’ll want to include these as well for the same reasons already mentioned. Some personal service providers to keep in mind for inclusion:
Childcare provider
Hairdresser
Home care provider
Meal preparation
Transportation
Tutors
Additional Information
Along with the contact information for these service providers, it’s a good idea to make notes about when they are expected, and you may even want to include service agreements and contracts. For example, if you have a standing arrangement to have your sprinkler system blown out each fall, make a note of that.
Your estate planning attorney may not include all of this information directly in your estate plan, but they will want to be able to assist your family with where it can be located when the need arises.
If you are seeking estate planning services, please book a call with our office here .
This month we will discuss the subject of powers of attorney. In week one, we will discuss how to name a financial power of attorney. This is also known as a durable power of attorney.
There are many things to consider when appointing a financial power of attorney (aka an attorney-in-fact). This is an important position. Whoever you appoint would have the ability to make decisions regarding how you manage your finances. While it may seem obvious, it’s important to focus on choosing someone who is organized, trustworthy, and financially responsible.
What powers does an agent have when they have a financial power of attorney?
As stated earlier, the agent with a financial power of attorney can handle your finances just as you can. An agent will have the ability to go to your bank and handle banking transactions. They can contact your investment account broker and manage those funds. They can handle your insurance and sell your house. Of course, you want your agent to only make financial transactions in your best interest while you are incapacitated.
Can things go horribly wrong? Yes! Your agent has the power to clean out all of your bank accounts and sell your home. Heck, if they wanted to, they could take your assets, move to Fiji, and set up a little beach bar! I want to reiterate: It’s important that you choose someone who would never even think of doing something like that. You need to choose someone who will only have your best interest at heart.
Who should be your financial power of attorney?
When considering who should serve as a financial power of attorney, a lot of people are compelled to choose someone close to them. A lot of times this will be a relative, such as your children or possibly a sibling, but it doesn’t have to be. The agent could also be a close friend or even a professional if that is who fits that role in your life. In our practice, we like to make sure that our client acknowledges this very important point: the person you name as your agent in a financial power of attorney will have the ability to handle your finances pretty much the same as you will.
Choose an agent who can communicate effectively
Not only do you need to trust your agent, but we also recommend that you find someone that other people trust! While this element is not completely necessary, it may be important to you that your agent be relied upon to communicate important information effectively with the people in your life.
For example, if one of your relatives says to your agent: “Hey, my Aunty saved a lot of money and invested it well, how much does she have now and what has the spent money been used for?”. Ideally, you would have an agent that relatives intuitively trust to spend your funds in your interest. However, it would be really awesome if your agent took the time out of their day to respond thoroughly to your relative’s questions.
Choose an agent that is comfortable with online banking
Your agent should be good at bookkeeping
In a perfect world, your agent with financial powers of attorney would be held accountable for the transactions coming out of your assets. A good agent can effectively answer questions about spending and back it up with good bookkeeping!
An agent with power of attorney does not have to live in your state
As we mentioned before, the era of digital banking is here and it allows us the option to choose from a larger pool of agents, regardless of their location. Now, many people think that their agent under a power of attorney cannot be someone who lives out of state. And that is simply not true. Sometimes it helps to have somebody who lives in the state, but that is not a requirement in Tennessee. We do so many things by email and telephone, texting, and online business transactions that your financial power of attorney person, your agent, will likely be handling any business transactions online.
Choose an agent who will outlive you
While this is not a requirement, it is a good idea to think about someone who will outlive you. Generally, when you are using your power of attorney, it’s when you’re incapacitated. While there are times when a durable power of attorney is used on a temporary basis, such as during a medical event, it is more likely going to be during a period when we are at the end of our lives and are experiencing some type of ongoing health condition that is not likely to improve. We recommend that you look for an agent who can help on a continuing basis. A well-suited agent allows everyone to relax and enjoy the time you have left on this earth.
Who should NOT be your durable power of attorney
Again, while it may seem obvious, it is important to reiterate that anyone who is untrustworthy, unlikeable, terrible with money, incapable of balancing a checkbook, or unable to effectively use online banking might not be the best choice for becoming an agent of financial power of attorney. The goal is to find someone who can keep good accounting records and knows exactly where your money went, down to every last penny! A good agent is someone who is willing to communicate with everyone without hesitation. The main point is that no one in your circle should be concerned that your agent is taking advantage of you if you are incapacitated.
Now, if you are not incapacitated, your agent should only be acting if you are telling them to do so. Even if you have your power of attorney take effect immediately, your agent can and should only act under your direction. If you find that the agent acts otherwise, there are legal actions you can take against them in court.
In conclusion
A power of attorney is a useful tool for organizing the “adulting” part of your life, especially in incapacitation. A financial power of attorney should be someone that you absolutely trust; someone who will not give pause to others in your life. Someone who is financially responsible and organized, and someone who is familiar with handling online transactions. It does not matter if your agent lives in your state. In short, find an agent you believe will always have your best interest at heart.
There are many types of powers of attorney. Many powers of attorney are used when creating a well-thought-out estate plan. Do you think you could use a durable power of attorney in Nashville? Schedule an initial call to see if we can help you with your situation.
