Preparing for the future isn’t always easy, but planning for life’s final chapters is one of the most profound acts of care we can offer ourselves and our loved ones. Conversations about wills, trusts, and end-of-life care may seem daunting, yet they provide clarity, security, and peace of mind.
Taking steps to outline wishes for healthcare, asset distribution, and personal legacies ensures that those we cherish are supported and that our intentions are respected. Here, attorney Matt Roethe offers helpful advice to help you plan for the future in the best way possible.
Why It’s Important to Ensure a Will Is in Place
One key reason to ensure you have a will in place is to avoid uncertainty surrounding beneficiaries. If you don’t have a will, it is called Intestate. The parameters that dictate who receives a deceased person’s assets when no will is available varies state-by-state. For example, in Wisconsin, intestacy laws follow a hierarchy to determine how assets are distributed. Per Roethe, the following represents the order.
If there’s a surviving spouse:
- If the deceased has no children (or if all of their children are also the children of the surviving spouse), the entire estate goes to the spouse.
- If the deceased has children from another relationship, the surviving spouse receives half of the estate, while the children from outside the marriage inherit the other half.
If there is no surviving spouse:
- The estate goes to the deceased’s children (or their descendants). If any children have predeceased the individual, their share is passed down to their own children.
- If the deceased has no children, the estate goes to their parents.
- If there are no surviving parents, the estate passes to siblings (or the descendants of deceased siblings).
If there are no immediate family members:
- If no spouse, children, parents, or siblings (or their descendants) survive, the estate may go to more distant relatives, such as grandparents or aunts and uncles.
- If no family members are found, the estate may eventually go to the state of Wisconsin.
Understanding Probate (And How to Avoid It)
When a person’s assets exceed $50,000 without designated beneficiaries, probate is required. In probate, all interested parties are notified of court proceedings, and a personal representative (or executor) is appointed to manage the estate. This representative inventories assets, pays debts, reports expenses, and then distributes the remaining assets to beneficiaries. After filing a final tax return, the estate can be closed.
To avoid probate, individuals can use tools like trusts, which allow for ongoing control over assets, especially helpful for providing for children, relatives with special needs, or beneficiaries needing financial management. Other options include designating beneficiaries on life insurance and investment accounts.
When it comes to whether a person should compose a will or a trust, Roethe offers some advice. “Either one is acceptable. It just depends on your circumstances,” he notes. “For instance, trusts are very good for people who might own a business or a farm or maybe they have a spendthrift child or a special needs child.”
A comprehensive estate plan typically includes a will or trust, healthcare and durable powers of attorney, HIPAA authorizations, and named beneficiaries. Though some may hesitate to address end-of-life planning, completing these documents often brings a sense of relief and peace of mind.
Securing a Power of Attorney
It’s also important to consider healthcare options. For example, if you’re in a major accident or suffer a severe health event and are unable to make your own healthcare decisions, a healthcare power of attorney can authorize someone to make those decisions on your behalf.
With this document, two medical professionals must confirm your incapacity, allowing your appointed agent to make critical choices about treatments, daily care, and potentially long-term care placements. It also permits your agent to decide on life-sustaining measures if you are in a persistent vegetative state. Given its importance, it’s recommended that everyone 18 or over should have a healthcare power of attorney in place.
“One other document people should probably consider is a durable power of attorney for finances. That’s somebody who can make financial decisions for you. It’s always a good idea to appoint somebody, but you have to be careful with it because it has to be somebody that you can trust,” cautions Roethe.
Reasons to Work with a Professional
Working with a professional on estate planning can make a significant difference. While it may be tempting to go it alone, a skilled attorney can offer clarity, objectivity, and tailored advice that fits your unique needs, helping avoid common pitfalls and saving money in the long run.
Professionals streamline the process, minimize future complications, and help families avoid disputes by ensuring wishes are clearly documented. Just as you’d consult a mechanic for car repairs, seeking an expert’s guidance in estate planning brings peace of mind, efficiency, and confidence that your affairs are properly managed.
“Some people are afraid of the cost, but if you find the right attorney, you actually save money. A lot of times, you can find a good attorney for the right price. And, it will save you headaches in the future,” assures Roethe.
