Reasons to have an Estate Plan

1. Get a will. Dying without a will is referred to as "dying intestate," which means you gave up the opportunity to distribute your assets as you would have liked. Instead, the state (through probate court) gets to figure things out for you. It's quite possible all your assets may not pass to your spouse and children as you would have intended.

2. Name a guardian for your minor children. If you have young children, you need to consider who will care for them should something happen to you. Do you really want a judge-appointed stranger to make those decisions?

3. You also need a medical directive and a durable power of attorney. These documents apply if you become disabled and cannot make decisions on your own for basic expenses like your mortgage and other monthly bills. A power of attorney lets a friend or family member do that for you. Your medical directive allows another person of your choice to act on your behalf, honoring your preferences.

4. Think of your heirs. Without proper planning, your heirs will have to deal with probate court. If you own real estate in several states, your heirs will have to deal with probate in each state. The process involves long delays and high legal costs. It is also public information. Fortunately, you can avoid all this with a revocable living trust.

If you haven't done any estate planning, set up an appointment with an estate attorney soon.

What is Long-term Care Insurance and Who needs it?

Long-term Care refers to “custodial”care—personal, hands-on assistance to individuals who need help with the activities of daily living, or ADLs. ADLs are routine things that healthy people don’t give a second thought to: bathing, dressing, eating, using the toilet, getting into and out of bed or a chair. The need for long-term care may be due to physical limitations or disabilities resulting from injury, illness or the normal aging process. It can also be due to a cognitive impairment resulting from a stroke, for example, or Alzheimer’s disease.

While such care is provided in nursing facilities, assisted-living facilities, and adult day care centers, the majority of long-term care takes place in the recipient’s home. Usually, in fact, it is provided by unpaid family members or friends.

Nearly 41% of long-term care is provided to people under age 65 who need help taking care of themselves after an accident or stroke or as a result of chronic illness or debilitating diseases.

It’s clear that the longer you live, the more likely it is that you’ll need help at some point. Overall, at least 70% of people who live to age 65 will require some long-term care services at some point in their lives. That means that only three in ten of us will live out our lives without the need of such assistance.




Clearly the potential need for long-term care is a risk that all Americans face—and one that can take a heavy toll on your family and your bank account.

Study by John Hancock, 2008

Source: Kiplinger's

Key Documents for Estate Planning