4 Critical Estate Planning Tasks To Do Before Going On Vacation

4 Critical Estate Planning Tasks To Do Before Going On Vacation

Taking a break from life’s fast-paced and often stressful cadence to go on vacation can be a wonderful experience. Before packing your bags and boarding a plane, however, you may want to complete a few estate planning tasks to create a plan in the event that something were to happen on the trip. For help developing estate planning goals for your unique needs, consider contacting a New York estate planning lawyer at the Jennifer V. Abelaj Law Firm by calling (646) 885-1330 to schedule a consultation.

What Is an Estate Plan?

An estate plan is a set of instructions that are put in place to specify what will happen to a person’s assets upon his or her death. The estate includes everything that a person owns or owes (e.g., debts) at the time of his or her death. Typically, estate plans also include documents that indicate who has the authority to make healthcare or property decisions if the individual is incapacitated.

Additionally, as part of a complete estate plan, people can designate beneficiaries of assets they own. For example, they could name a daughter as the payable-on-death beneficiary of a checking account. Other assets, such as retirement and investment accounts, allow the owners to name beneficiaries so that some assets are automatically distributed when the account holder passes away.

4 Estate Planning Tasks To Do Before Going on Vacation

Going on a vacation can be an exciting (but sometimes stressful) endeavor with so much to take care of before leaving. While on vacation, people hope to only have fun and entertaining experiences, but the reality is that injury or illness can unexpectedly arise, even when someone is on a trip. Without proper estate planning, a person’s loved ones may be confused about what to do and may not be able to give the support needed.

Before people depart on vacation, therefore, taking care of a few estate planning tasks can be beneficial for themselves and their loved ones. Four important items to complete before leaving are:

• Updating (or writing) a will
• Signing or updating a power of attorney for property
• Signing or updating a power of attorney for healthcare
• Updating beneficiaries on important accounts or policies, such as checking and retirement accounts

Update (or Write) a Will

A Last Will and Testament (will) is a document that gives instructions about distributing certain assets when the testator, the person who writes the will, dies. In the will, the testator chooses an executor or administrator who oversees carrying out the document’s instructions. Additionally, the will names beneficiaries or heirs who will receive the testator’s property. In some cases, the will creates a trust called a testamentary trust that holds assets on behalf of named beneficiaries, generally the person’s children.

Before going on vacation, updating or writing a will may help to ensure that loved ones receive the inheritance you want them to have after you die. If someone does not have a will or if the will is inadequate, according to the New York State Senate, New York intestate laws regarding succession will determine who inherits the person’s property. Therefore, having a well-written will in place can prevent certain loved ones from being left out of the process. If you are ready to address estate planning goals, a seasoned estate planning attorney from the Jennifer V. Abelaj Law Firm may be able to help.

Sign (or Update) a Power of Attorney for Property

According to the state of New York, the law allows individuals to create a power of attorney for property so that the individual (the principal) can give someone else (the agent) authority to make decisions about the principal’s property under certain circumstances. The principal chooses when a power of attorney for property becomes effective, either on a specific date or when something specific happens, such as the principal’s incapacitation. A power of attorney for property may be essential when a person goes on vacation because it ensures that someone can take care of the principal’s finances if he or she were to suffer a debilitating injury on the trip.

In the power of attorney form, the principal can describe the scope of the agent’s authority regarding the principal’s assets. For example, the principal might limit the types of transactions the agent can make (e.g., paying expenses or making transfers) and for what purpose. Having a power of attorney named before going on vacation can also be helpful by designating someone who can take care of certain financial matters for the principal while he or she is gone, not just in case of incapacitation.

Sign (or Update) a Power of Attorney for Healthcare

Like a power of attorney for property, a durable power of attorney for healthcare allows a principal to name an agent to make medical decisions on his or her behalf under certain circumstances. In a healthcare power of attorney, the principal defines the scope of decisions the agent can make. Additionally, the principal indicates any desired lifesaving measures, such as life support, to take if he or she becomes incapacitated.

Thinking about the potential scenarios may be uncomfortable, but putting a plan in place can help a person’s loved ones if the unexpected does happen. In the absence of proper instructions, the default New York laws dictate who can make a decision and when, and this person may not be the person the principal would have chosen.

Update Beneficiaries on Important Accounts or Policies

The last estate planning task to take care of before going on vacation is updating the beneficiaries on essential policies and accounts, such as payable-on-death instruments. Payable-on-death instruments that may need updating include:

• Checking and savings accounts
• Investment accounts
• Retirement accounts
• Certificates of deposit

Other accounts may also allow the holder to name a beneficiary to take possession of the asset upon the his or her death. Payable-on-death instruments are beneficial because they allow the owner to transfer these assets to a loved one outside the probate process. In times of stress and uncertainty, such as when a loved one dies, having a streamlined process in place can make a big difference.

Contact an Experienced Estate Planning Attorney for Help Today

A vacation is a time to create new memories and unburden yourself of the stressors of daily life. By taking care of estate planning matters before departing, individuals can provide clarity and continuity for their loved ones should something happen to them while they are gone. For help with your estate planning goals, consider calling (646) 885-1330 to schedule a consultation with an experienced estate planning attorney at the Jennifer V. Abelaj Law Firm