Extreme Vacations and Your Documents
Posted on June 24, 2024
Planning an extreme vacation this year? Whether you are swimming with orcas in the fjords of Norway, trekking through the Patagonia parks in Chile, or going on safari in the Serengeti, significant planning is in order. You will no doubt have a long travel checklist. Along with those checklists, you should also include reviewing important estate planning documents prior to your trip.
Aside from year-end financial planning, would you like to know when we see our clients the most? Before they plan to set out on international travel! Life happens, so it is best to be prepared. Your estate planning documents direct your loved ones how to handle your affairs in the event of your incapacity or death. Now is the time to meet with your advisor to review the following documents to ensure they align with your wishes. Prior to traveling, here are the ones that will be most important to you:
Last Will and Testament. Your Last Will and Testament serves a few purposes. It directs how you want your property distributed after your death, who will be in charge of distributing the property, and who will be named as guardian of your minor children or dependents.
Revocable Trust. Your revocable trust names a trustee to manage any assets that are titled in the name of the trust in the event you are unable to do so. The trust directs your trustee how to distribute the assets, and how to manage your affairs if you become incapacitated. Assets held in a revocable trust avoid the probate process which therefore preserves estate assets.
Durable Power of Attorney. Your Durable Power of Attorney names the individual that will act as your agent in the event of your incapacity. Your agent will have access to your bank accounts and safe deposit box, and will have the authority to pay bills, contact utility providers, deposit checks, renew insurance policies, and many other matters related to your finances. Your advanced planning by gathering and organizing important documents will assist your designated agent under your Power of Attorney to act efficiently and effectively. Your agent will need access to information such as titles to real estate, vehicles or boats, tax returns, bank statements, life insurance policies, and a list of user names and passwords for online bill pay and social media accounts.
Health Care Surrogate Designation. Your Health Care Surrogate Designation appoints an individual to make medical decisions on your behalf if you are not able to make them for yourself.
Living Will. Your Living Will states your wishes regarding end-of-life medical care if you are not able to express your own wishes.
While you are at it, it would also be important to review beneficiary designations of any IRA or 401K accounts, life insurance policies, annuities, brokerage or bank accounts, or other financial accounts. Not having the proper beneficiaries named on your accounts will cause your estate to go through probate! It’s so easy to avoid.
Proper planning can afford you peace of mind. Once your estate planning documents are updated and stored in a known, secure location, you can relax and enjoy your extreme vacation to the fullest!
At The Trust Company, we frequently assist clients with determining which legal documents they need, and who will serve as their agent in different capacities to serve their purposes. We also periodically review these documents for our clients and assist them in organizing their comprehensive estate plan to ensure that their wishes will be met upon their incapacity or death. We are here to help.
Margaret McMorrow, J.D.
Senior Vice President, Naples | Wealth Services
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