How to Prepare for the Future in These Uncertain Times

Over the last few months, our lives have undergone the kind of change we haven’t experienced since 9/11. The coronavirus pandemic isn’t just impacting our economy and healthcare system, it’s affecting every aspect of our lives. The immediate result of these alterations is that we’re all experiencing an extraordinary level of anxiety about what lies ahead. As attorneys who do both real estate law and estate planning, we know that planning ahead is a highly effective way to eliminate stress caused by uncertainty.

An Estate Plan Empowers You Today and Prepares You for Tomorrow

Many people see estate plans as something that comes into play only after they pass on. In fact, an estate plan gives you more control over your wealth and possessions throughout your life, while securing your family’s future. Whatever your profession, whether you’re married or single, are established in your chosen field or just starting out, a well-prepared estate plan ensures that your wishes for your family, your business and your possessions will be carried out now and in the years to come. An estate plan is especially important for people in complicated relationships such as unmarried couples and blended families. Unless you prepare a will stating your wishes, the state can award your assets to legal spouses or biological family members rather than the people you live with every day. And should you become physically incapacitated before signing a living will, your caregivers may make decisions about your healthcare about which you may disapprove.1

Take Charge of Every Aspect of Your Life

Here are four specific areas most plans should cover. Of course, the larger your family and the more assets you have, the more complex your plan will probably be. But the principle is the same – planning ahead now gives you more control over the future.

Manage Your Healthcare with a Living Will or Advance Directive

No one can predict the future, but you can prepare for it whatever your age. Whether you’re struck down by coronavirus or another illness, or are in an accident that incapacitates you, a Living Will ensures that decisions about your health care will be made by people you trust. Young adults are particularly at risk for sudden and serious injuries due to accidents and acts of violence. Plus, 40% of hospitalized coronavirus patients are under 54 years of age. Knowing that someone you trust will be responsible for making decisions about your care and living arrangements can lessen your stress now.

A Living Will communicates what you want your care to be. Are you willing to live in a comatose state, kept alive by machines? Or do you want to put a time limit on such interventions? Putting it in a legal document also makes it easier for your partner, family members and/or friends to deal with their own anxiety about your care.1

Distribute Your Possessions with a Will

A will gives you the final word about your life and the security of your loved ones. This includes your funeral arrangements, what happens to your business and who gets what you now own. Without a will, distribution of your possessions may be determined by the state or a party designated by the state, including an ex- but still-legal spouse or your closest blood relative. Unless you’re married to them, the person you live with will have no legal claim to your property. That’s why couples in a committed relationship who aren’t married should each make a will. The same is true for blended families, where the partners have had children with other partners. A will is the most effective way to avoid confusion and strife for both sides of the family.1

Older couples who were married before and have grown children should also make an official division of property in a will. It’s all too easy for children to assume that they will inherit certain assets only to end up in an ugly legal battle with the same people they used to regard as surrogate parents. On the other hand, without a will, the assets of one partner may be inherited by the other, totally eliminating the inheritance of children from a previous marriage. A will helps manage everyone’s expectations.

Care for Kids First: Appoint a Guardian

If you have minor children, a will is an absolute imperative, if only to make sure they’ll be cared for should they be orphaned. A guardian is legally responsible for the physical well-being of the child in question until they’re 18 years old. This includes providing food, clothing, shelter, health care and education for them. Ideally, the guardian you designate will be a relative or close friend who already has a loving relationship with your child and welcomes the chance to care for them. 1

Whoever you ask to fill this role is not expected to support your child with their own funds. Nor are they paid for the care they provide. But your estate is expected to cover the expense involved in raising your children until they are old enough to be on their own. That’s why life insurance policies are highly recommended for people with young families.

If your children are the primary beneficiaries of your insurance policies and other assets, you should give some thought to how well your chosen guardian handles financial matters. If you feel money management isn’t one of their strong suits, you may want to ask a second party to oversee the finances of the estate instead.

Taking Care of Business: Succession Planning

According to the Small Business and Entrepreneurship Council, over 99 percent of America's 28.7 million firms are small businesses, and 88% of these firms have fewer than 20 employees.3 So although making an estate plan and a formal business succession plan are regarded as two different processes, if you’re one of these firms you should still be aware of how the latter will impact the former.

If you’re a retailer, provide business-to-business services or have a professional practice, you may plan to leave your business to one of your children to follow in your footsteps. Or you may want to sell your business to an interested party and retire. Whatever option you choose, the value you expect to pass on or to get from a sale should be considered as part of your estate. And making plans in advance gives you a better chance to get the most benefit out of the transaction and still serve the interest of your employees, clients and heirs.

Four Preliminary Steps to Prepare Your Plan

Before contacting a lawyer or financial planner to formalize your plan, do some preliminary work. Remember, professionals charge by the hour, so the more organized you are before you see them, the more time – and money – you’ll save.

1. Take inventory of your assets.

These would include all your insurance policies, 401Ks and other investment accounts, bank accounts including savings, CDs, Money Market and IRAs. Of course, you also want to list your real estate holdings starting with your primary residence. If you have investment properties, gather as many details about them such as assessments, maintenance, rents, etc. as you can. You might even consider contacting a real estate agent to get some information on property values in the current marketplace.

If you have furnishings of special value – antiques, paintings, rare books, etc. – list those as well. Also, any other household goods and jewelry that could be sold for a substantial amount. Don’t forget to include things like collections of dolls, political buttons, coins and so on. Finally, if you have your own business, estimate its current value as well.

2. Decide who gets what.

Are your spouse and children your primary beneficiaries? Will your estate be divided equally among them? Do you want to make a special provision for someone who needs lifelong care? What about faithful friends or employees? Favorite charities and alma maters? Give this matter careful thought. You can, of course, always make changes and probably will through the years. But developing this list will help you prioritize what you want to do and for whom.

3. Select an executor.

This could be a relative or friend, perhaps the guardian you’ve chosen for your children. Their role is to make sure the wishes expressed in your will are carried out.

4. Find an attorney.

Wills, living wills, business succession plans — all involve knowing and following legal restrictions and requirements. You want someone who knows about real estate and investments and, above all, encourages you to make your own decisions while providing you with the help you need to make informed ones.

We have a FREE questionnaire to help you get started.

Over the years we’ve developed this easy-to-use tool to help our clients find the answers they need. Estate planning isn’t all that difficult. But as you can see from the information above, it does have a lot of moving parts. This form will help you decide on your “must haves” and help to simplify the process of creating a plan. Once the questionnaire is completed, we’d be happy to sit down with you via Zoom to see how else we can be of assistance. Because you can meet with us from the comfort of your own home, there is no time like the present to take care of your affairs.

To get your FREE “Emerson Law Estate Planning Questionnaire” call us at 708.660.9190.

We’ll contact you as soon as we get your request. Or for more information about our firm and the work we do, visit http://www.emersonlawfirm.com/.

1 Mears, T, “10 Essential Estate Planning Tips Everyone Should Know,” Money, U.S News.com https://money.usnews.com/money/personal-finance/family-finance/articles/2017-07-14/10-essential-estate-planning-tipseveryone-should-know April 2020

2 Mansell, W. and Flaherty, A., “Nearly 40% of those hospitalized with coronavirus are younger than 54: CDC,” ABC.newsgo.com, https://abcnews.go.com/US/40-hospitalized-coronavirus-younger-54-cdc/story?id=69681304) April 2020

3 Get the Facts, “Facts & Data on Small Business and Entrepreneurship,” Small Business and Entrepreneurship Council.org,

https://sbecouncil.org/about-us/facts-and-data/, April 2020.