Ladies, I am here to talk to you about the things you never want to have to think about. Why? Because getting your plans in place NOW, is going to keep your family out of hot water later. Single, Married, Divorced and Widowed, alike, we all need to look at getting our estate plan in place.
As a Certified Estate Planner with The Baptist Foundation of Oklahoma, I work every day helping families and individuals put together plans for the future that give them peace of mind that they and their families will be properly taken care of. I have also seen families come to me too late. Their loved one is in hospice and they need a plan in place, now. So, I help them make it happen as quickly as possible, but that is not what they should have to worry about during that time!
So, what is an estate plan? A typical estate plan consists of a Will, a Power of Attorney for Finances and Health Care and an Advance Directive for Health Care. You can also choose to avoid probate with a Revocable Trust. Those are the components of an estate plan, but here are three reasons why it is important for every individual to have a plan in place, no matter what:
Medical and Financial Release
Due to privacy laws in our country, attorney-drawn documents that give your loved ones access to your medical information is of increasing importance. A Power of Attorney for Health Care and an Advance Directive for Health Care (or a Living Will) allow you to name someone who can discuss your medical information with your doctor and make medical decisions for you on your behalf if something were to happen to you. Just because you trust your parent or your Spouse to do this for you, doesn’t give them the legal right to do so. You must sign a document before the doctors are legally allowed to give your medical information to any of your loved ones.Similarly, a Power of Attorney for Finances allows you to name your Spouse or a friend to make financial decisions on your behalf in case of your incapacity. As a single woman who owns a home, I find this one especially important. I don’t have anyone else named on my accounts, so if something were to happen to me, I know that my named Power of Attorney can pay my bills for me.
Guardianship for Minor Children
Did you know that if you don’t have a Last Will and Testament nominating guardians for your minor children that the State of Oklahoma will decide who to appoint as guardian for them? If that isn’t enough motivation for you young mommas, then I don’t know what else I can say.
Your Last Will and Testament can name any friend or family member to act as legal guardian of your minor children, and the judge will rule according to that Will, unless a biological parent who has legal rights is currently living. You also have the opportunity to name an age you would like your minor children to inherit any money they might be receiving from your estate, and a money manager for that inheritance until your children reach that age of distribution.
Avoid Probate Court
As your assets grow, avoiding probate court for your children or beneficiaries may be more on your mind. Probate is the court proceeding used to change the title of your assets from your name after you are deceased, into your loved one’s names. A probate isn’t needed if you have a surviving Spouse and you own all your assets jointly. Depending on your type of assets (property, bank accounts, cars, investments) the Probate could take anywhere between 6 months to a year to complete, or sometimes even longer. Your loved ones will also need to hire a Probate Attorney during that time to handle the proceedings, and your estate will be used to pay the expenses. The most popular way to avoid Probate for your beneficiaries is to create a Revocable Trust. If this is something you might be interested in, I would encourage you to talk with your Financial Advisor or an Attorney for further information.
So, what are the next steps? Now that we realize the importance of putting a plan in place, how do we make it happen?
The simplest way would be to contact an attorney or your financial advisor. The Baptist Foundation is always a great place to start if you are also interested in leaving a gift to ministry (i.e. your church, the International Mission Board, Hope Pregnancy Centers, Hope is Alive, etc.) in your plan. They can reimburse a portion of your attorney’s fees for your gift, and in most cases, help you complete your plan free of cost. For more information on that, visit bfok.org/plan. If you don’t have an attorney, and you don’t want to leave a gift to a ministry, the Foundation can also provide you with an attorney referral if you give them a call.
Meet the Author!
Tallie Thompson is the daughter of CRBC's senior pastor, Rick Thompson. She is an artist that has a heart for missions and children's ministry and enjoys teaching grade schoolers on Sunday mornings. When she isn't traveling, she enjoys sipping on a cup of coffee with her family and friends in good ol' OKC.