Last week, I met with a young professional colleague who enthusiastically pitched me a much-needed business product. We discussed many things, most notably estate planning. This person was in their late 20s, single and not attached, and at the early stages of a promising career. He seemed to grasp the nuances of my business, but when I asked him if he had an estate plan, he said he was too young, healthy, and did not own any property. In his mind, estate planning was for the elderly and the wealthy. At his age, I had less knowledge of the need for estate planning at a young age than he did. It led me to recollect an experience that I only wish highlighted the need for good planning earlier in my life. Here is my recollection.
A lump was growing on my groin area. The swelling had begun weeks prior, but I ignored it, optimistically thinking it would go away. When I developed chills and a low-grade fever, I finally decided to visit my doctor. She sent me straight to the hospital for exploratory surgery.
At the time, I was young and healthy. In my mid-20s, I worked in my second professional job after graduating from college. I was 500 miles away from my family before the days when everyone had a cell phone. The doctors told me I did not need to worry. The surgery was an in-and-out procedure. Yet, I had to sign all types of releases that read should I die or become incapacitated, the doctors operating on me would not be liable. There was also a litany of possible dire outcomes from the surgery. Nothing to worry about, right?
I was scared and alone. It was the days of landlines. I could not reach my Mom and Dad and did not even know how to contact my brothers. Aside from a few work colleagues, I had no real friends nearby. For the first time in my life, I did not feel invincible. I had to make quick decisions without fully understanding them. Mentally, I was not in a good place to do so.
Though I was college-educated, I would have been clueless if anyone had asked me what an estate plan was. I would have thought it was something for the wealthy few lucky enough to have “estates.” I did not even connect it with having a last will. I was blissfully ignorant! I needed an estate plan and never even knew it. Every person of age majority needs one, regardless of their stage in life and economic status. Let me explain.
An estate plan is not just about the property one owns or the wealth they have accumulated, nor how their possessions pass after death. An estate plan includes planning for the exact circumstance I faced. In essence, who will be responsible for making decisions on my behalf when and if I cannot?
If you are 18 or older, an estate plan is valuable and does not need to be complicated…
One’s estate plan should not be taken lightly at any stage in life, even if a person is young and healthy. My scare was an unexpected illness. For another, it could be a car accident or workplace accident. As I write this, the COVID pandemic has claimed more than 6 million lives in the past couple of years. Life is full of surprises. Even an 18-year-old should have a simple estate plan that includes advance directives, a durable power of attorney, and a simple will.
Advance directives contain written, legal instructions for how to care for you if you face a time when you cannot make decisions independently. Because unexpected situations can arise at any moment, advance directives are not just for older adults. A Healthcare Proxy grants authority for a trusted person (an “agent” or “proxy”) to make medical decisions for you. Combined with a HIPPA release, your authorized “agent” or “proxy” can access your medical records when making decisions. These pair with a Living Will document that documents your wishes and preferences for your care, including end-of-life decisions. The Living Will provides your “agent” with instructions or parameters to coordinate your care and make decisions on your behalf.
What happens if you do not have any advance medical directives? First, you may receive the medical care you do not desire. Second, doctors will likely seek out family members whom they believe are in the best position to make decisions for you. These may not be people you would choose. Suppose multiple family members, friends, or life partners become involved. In that case, they may fight over what decisions to make and who gets to make them.
When I had my surgery, a health care proxy could have made health care decisions on my behalf had my situation worsened. Without one, I would have left a lot to chance. At that time, my parents had separated. I likely would have named my Mom. Assuming she and my Dad could have reached me, who would have taken that power? Would there have been conflicts between them? With no guidance from me, would they have been able to make decisions respectful of my values and desires? Thankfully, I will never know. I know that I would have had tremendous peace of mind had I chosen someone to fill this role.
A durable power of attorney is equally important. A durable power of attorney grants a trusted person (agent) the authority to manage your financial affairs when you are unable to due to incapacitation or sometimes by choice. When I faced surgery in my 20’s, though, I had few assets, but I had financial responsibilities. Among other things, I rented an apartment, was repaying student loans, and had a car payment. I also had an employer that offered many great benefits. Who would have managed my affairs if I had been incapacitated or hospitalized for an extended time? Who would possess the legal authority to speak to my employer and coordinate benefits?
In Massachusetts, in the case of incapacitation, the Probate Court would have legal authority over my affairs. Courts can be overburdened. There can be delays in assigning someone to handle my matters. The Court’s choices and priorities may not reflect the preferences and priorities I would make. If a trusted friend or family member wanted to manage my affairs, they could only do so through the court system. The alternative to not naming a durable power of attorney is inefficient. It also leaves a lot to chance. No matter your age and stage in life, a durable power of attorney is a vital document.
The final document every adult should have, regardless of age and stage, is a simple will. A simple will states whom you wish to have your property or assets after you die. It names a personal representative to administer your estate. When I was in the early stages of my career, I had very little and did not own much. I did, however, own a car, a handful of valuable possessions, and a retirement plan. I likely would have left everything I own to either my two brothers.
A simple, well-written will would provide some assurances that my wishes and preferences would be honored and enforceable. Without a will, my assets would have passed directly to my parents unless they predeceased me. Only then would my estate have been distributed to my brothers.
If anyone reading this is curious, I had contracted Cat Scratch Fever. I had heard the Ted Nugent song before but never realized it was a real thing. One of my employees, a dear friend, Coach Red, took me into her own home for a week and nursed me back to health. It is one of the most extraordinary acts of kindness anyone has ever done for me. Thank God everything turned out okay.
If you are a young adult, student, or just starting in life and want to learn more, don’t hesitate to contact my office at 781-874-4674. We offer straightforward estate planning options for students and young professionals with no children or substantial tangible assets. We have special rates for students and early-stage young professionals.
DISCLAIMER: This blog is not a substitute for legal advice. The content intends to provide an overview of the subject matter and is educational and informational only. This presentation creates no attorney-client relationship. Don’t hesitate to contact an estate planning attorney if you wish to obtain legal advice and services.
