Legal Resolutions for the New Year

/in , , /by

A New Year’s Resolution for Your Family’s Future

As a new year begins, many of us set goals for our health and finances. But one of the most powerful resolutions you can make is to ensure your legal affairs are in order, providing security and peace of mind for your family. Personal circumstances, state laws, and your assets can change over time, which is why an experienced elder law attorney should review your planning every 3-5 years.

While every person has unique needs, a comprehensive plan is built on a set of foundational documents that every adult should have in place.

The 5 Foundational Documents of an Estate Plan

Think of these five documents as the essential toolkit for your life and legacy:

  1. Last Will and Testament: A will ensures your property passes to whom you want, the way you want, after your death. Without a will, North Carolina law dictates who inherits your property, and it may be divided among your spouse, children, and even parents in a way you never intended. A valid will is the only way to guarantee your wishes are followed.
  2. General Durable Power of Attorney (for Finances): This document allows you to appoint a trusted agent to make financial decisions for you if you become unable to do so yourself. A simple, short-form document is often not enough. For effective long-term care planning, you need a robust power of attorney that grants the specific authority required to protect assets in a crisis.
  3. Health Care Power of Attorney: Similar to the financial power of attorney, this allows you to appoint an agent to make healthcare decisions on your behalf. Choosing your agent in advance ensures your medical wishes are honored and prevents family disputes. Without these powers of attorney in place, your family may be forced into a costly and stressful guardianship proceeding.
  4. HIPAA-Compliant Medical Release: Federal privacy laws (HIPAA) can prevent doctors from speaking with your family during an emergency. This release gives your loved ones and your Health Care Agent permission to access your medical information, allowing them to make informed decisions when it matters most.
  5. Advanced Directive for a Natural Death (Living Will): This document states your wishes regarding end-of-life medical care. It indicates to your doctors that you do not wish to be kept alive by artificial means in certain terminal situations, relieving your family from the burden of making that difficult decision.

Beyond the Basics: A Complete Review

A thorough legal check-up also involves reviewing assets that pass outside of your will, such as retirement accounts and life insurance policies. It is crucial to ensure your beneficiary designations are up to date. Otherwise, you could unintentionally leave assets to a former spouse or have them paid to your estate, complicating the administration process.

For many families, this is also the perfect time to explore how planning with trusts can provide greater control, privacy, and asset protection for your beneficiaries.

Call our office at (919) 256-7000 to schedule a consultation.