Often times professions develop their own vocabulary and when you are around that all of the time you lose your frame of reference from the outside world. I believe that to be the case with the legal profession on many occasions. For instance, we often refer to the areas of law that we focus on as our "Practice Areas". Then within that category we have a descriptive title for our particular focus including, Tax Controversy, Business Organizations, Title XIX Planning or Elder Law, and Estate Planning. The truth is that other attorneys and some clients actually understand what those areas cover, but many clients may be left in the dark when attorneys use this legal vocabulary. My hope is that this post will help everyone gain an understanding of what is meant by the term of art "Estate Planning". For those of you that already know this will just be a basic review, which is not a bad thing since a review every now and then can do some good.
Estate Planning can be defined broadly as the process through which one memorialized his or her wishes for the disposition of assets upon his or her death. Although this definition does not encompass other important aspects of the overall plan including naming someone to help out in cases where the individual is still living but unable to manage finances or care for his own wellbeing. A comprehensive estate plan will also address these situations by naming individuals to make health care and financial decisions for an individual if there are ever incapacitated or adjudged incompetent. Estate planning covers topics that many people would rather not openly discuss as you can imagine including what will happen when I die, who will care for my minor and/or disabled children, who will manage my finances if I cannot or who will make health care decisions if I am in a coma or incompetent, etc. We all want to believe we will live forever or at least for a long, long time. I cannot nor would I want to dissuade people from feeling this way. The reality is there are at least two certainties in the mortal world we live in and the title of this blog is appropriate in that regard. An additional aspect that is increasing in regularity and probability in recent years is the fact that people are living longer with the advances in medicine. This increases the likelihood that people will need long-term care or related services and assistance at some point in the future.
Estate planning is probably best known to the general public by the particular documents that one would typically execute including a Will, Revocable Trust, general durable powers of attorney for finances, health care power of attorney and instructions to a health care agent (also known as a living will or advance directive to physicians). The combination of the various documents ensure that the individual has planned not only for disposition or assets and care of minor children after death but also for his or her care and financial management during life should something unforeseen occur.
As is often the case when working with attorneys, the individual does not leave the office will a product or other tangible asset other than the documents mentioned above. From my perspective that is not the valuable service provided by estate planning attorneys. Instead, I believe that the main service received by an individual is the peace of mind that comes with knowing that she has completed a plan that memorializes her wishes and after signing the documents she no longer needs to worry about things in that arena.
