We know in the back of our minds that life does not last forever, but for most of us it’s difficult to look mortality in the face.
Many try to balance the desire to enjoy the moment with the need to plan for the future. Some live life with abandon. Others work out and work hard for the future, sacrificing now for health and prosperity later.
One of the biggest conundrums is how much one needs to retire. That’s because we don’t know how long we are going to live.
As Benjamin Franklin wrote, "Nothing is certain except death and taxes." Although death is definite, the time of death is indefinite. We never know how fast we will go and generally don’t have a choice. For some it is incredibly sudden. For others it’s slow and seemingly forever. Whatever the case, we must document our wishes before reaching the moment of incapacity.
According to Rhonda Griswold, partner and chairman of the Trusts & Estates Department at Cades Schutte LLP, everyone needs at least three to four completed documents. The first is an Advance Healthcare Directive, which outlines our core values with respect to care we would like to receive at the point that we can no longer make our own decisions. It also designates who is legally responsible at that time to make those health care decisions for us. The second document is the Durable General Power of Attorney, which enables designated parties to make business decisions, other than for health care, if we are incapacitated. Third, all of us should have a will that describes whom we wish to inherit our assets when we die.
The problem, says Griswold, is that banks and brokers don’t always accept the power of attorney. Some firms have rules that this document can’t be more than 3 years old. If it’s older, the concern is that, in the interim, the situation has changed and other documents may have been drawn up. To be sure, a power of attorney in the wrong hands is a license to steal.
A Revocable Living Trust is more failsafe than a will that is subject to probate, which is timely, costly and of questionable outcome. The trust, by contrast, is an actual entity, and financial institutions are generally more comfortable with it. A well-written trust also gives peace of mind to the subject individual and his or her family.
Federal rules governing trusts and estates are continuously changing, as is the financial and physical health of the people for whom the trusts are drawn up. Relationships evolve as well. As such, it is important to revisit and, if necessary, modify a revocable trust every three to five years.
Drawing up these essential documents can be difficult, but it can also be a profoundly enriching journey as we consider our wishes in life and upon our death as we find our place among our ancestors and heirs.
Take care of it before it’s too late.
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Ira Zunin, M.D., M.P.H., M.B.A., is medical director of Manakai o Malama Integrative Healthcare Group and Rehabilitation Center and CEO of Global Advisory Services Inc. Please submit your questions to info@manakaiomalama.com.
