When facing a terminal illness, estate planning becomes an essential task to ensure your wishes are honored and your loved ones are cared for.
While a difficult topic, addressing your estate plan can bring peace of mind and clarity during an uncertain time. Here are some essential estate planning steps to consider after a terminal diagnosis.
Create or update your will
A will outlines how your assets will be distributed after your death and names an executor to manage your estate. Be specific about your beneficiaries to avoid potential conflicts. If you already have a will, this may be an ideal time to look it over and make any changes.
Establish durable powers of attorney
Assigning durable powers of attorney (POA) allows you to designate trusted individuals to make medical and financial decisions on your behalf upon incapacitation. Choose people who are reliable and understand your wishes.
Review your existing POAs if you already have them in order to make sure that they still reflect your preferences in light of your diagnosis.
Create an irrevocable trust
An irrevocable living trust can help you manage and distribute your assets while avoiding probate. It allows you to control your assets during your lifetime and specifies how they should be handled after your death.
If you have a condition that requires expensive care management, a trust can help prevent asset depletion. For instance, it shields against creditors, including hospitals and medical care providers, leaving assets intact for your family.
These are just a few suggestions to consider. For personalized guidance for your unique circumstances, consider speaking with an estate planning professional.