Legacy Giving
For the past three years The Legacy Committee has been trying to help people with their planned giving by creating brochures and holding seminars about leaving a legacy. We also created a document to help people organize their personal papers. Here are a number of documents that would be helpful to people seeking advice or interested in simply downloading “The Basics for Personal Record Keeping”.
Personal Record Keeping
Legacy Brochure
Estate Planning
Lessons Learned from the Passing of a Loved One
Letter from a member of BAUMC
Estate Planning
Health and Legal/Financial Powers of Attorney
Preparing a full set of legal documents to give someone the authority to make health and legal/financial decisions for you in the event you cannot make those decisions yourself. Two separate documents are needed.
Health Care Power of Attorney gives full legal authority for a spouse, child, etc. to make critical health care decisions on your behalf when you are unable to do so. These can be simple directions about your care while you are under anesthesia or unconscious or could be decisions about terminal care. These decisions are made easier if you have also prepared a living will or advance directive, addressed a little later in this document.
Durable Power of Attorney for Legal and Financial Affairs assigns legal authority for someone to take care of legal and financial matters while you are unable to do so for yourself. This can be as simple as allowing someone to write checks to pay your bills while you are in the hospital to having the legal authority to sell stocks, property, etc. on your behalf.
- Living Wills and Advance Directives
While this is what most of us are reluctant to address it has the potential to save the most heart ache and stress in times of terminal care for a loved one. Essentially, these documents allow each of us to determine how we are to be treated as we reach the end of our lives. These need to be carefully thought out and discussed with the family members that will have to carry out your wishes. These decisions need to be your wishes because at critical times it may be hard for family to make a decision to let you go as opposed to go on artificial life support. The decisions that should be made are hard as they range from simply not resuscitating to withholding nourishment (remember Terry Schivos?).
Combined with the Health Care Power of Attorney described above, these documents can ensure that you reach the end of life with the same level of dignity that you lived it. As before, in preparing these documents, the details can be critical so seek the advice of your family doctor and a trusted lawyer in preparing them.
Funeral Preparations
As with most of the things discussed here, planning for your funeral arrangements in advance forces us to face the fact that we will not live forever. Things that should be considered range from the type of funeral service, if any, you would like to have, how you would like your remains to be handled, and, if you choose interment, selecting and purchasing the site, vault, etc. The whole process can be very stressful on those you leave behind – not to mention very expensive.
It’s probably easiest to first decide how you would like your remains handled. You could choose a traditional burial, cremation or even to donate your remains, all or parts, for transplant patients or research. If you choose one of the latter two, things get easier and far less expensive. If you choose a traditional burial, or interment of your ashes, you should consider purchasing the site, vault and perhaps even the casket in advance. Purchasing a burial site in advance of an immediate need usually results in a very steeply discounted price – not to mention that you get to decide where your remains will rest.
Prices for funeral services vary widely based on the choices you make but they could range from a few thousand dollars to tens of thousands of dollars – some of which may have to be paid in advance of any insurance money being received. Making these arrangements, both logistical and financial, in advance takes a huge burden off of your loved ones and ensures that your wishes will be followed. These details can be spelled out in your will.
- Wills and Living Trusts
This is a topic that seems like it should be simple but it really gets complicated fast. The basic objective here is to decide what is to happen to the assets you leave behind when you die. A secondary, but no less important, objective for preparing a will is to do as much as you can to keep the government from interfering in your affairs and taxing your assets. While some of this will be unavoidable, there are many ways to keep this to a minimum. If you fail to prepare a will to dictate what is to happen to your estate after you die the matter, and all of the decisions, will be handled for you by the government in Probate Court. While I’ve recommended throughout this paper that you seek the advice of an attorney to help you through the details of preparing various documents and such, this is a case where there is no practical alternative to engaging an attorney, preferably one who specializes in estate law (some now call it elder law). This can be a true legal quagmire if you try to go it alone or make use of the generic forms available to you on the internet. The federal and state laws are constantly changing and being ill prepared can have significant financial consequences in the distribution of your assets. Of course, if you have found a way to take it with you or plan to spend it all before you die, then this section will not be of interest to you.
As I am certainly not qualified to provide specific suggestions on how to prepare a will that’s appropriate for you I’ll only address a few generalities. One of the first things to know is that you don’t need to be old or have amassed a fortune to need a will. Next, in discussion with your attorney, consider whether a will or a living trust is best for you. These are different instruments that are available to you to protect your assets and avoid probate and some taxation on your passing. Creating joint accounts for all of your assets is another option to consider. Depending on how the accounts are set up, you could incur additional gift taxes. In the case of real estate, you could add your beneficiaries to the deed but, once again, depending on the details of the wording of the deed, you could set your heirs up for significant capital gains taxes on the sale of the property after your death.
Finally, when creating a will, in addition to naming your beneficiaries, you can choose to name an executor or personal representatives. This is someone who will see that the details of your will are carried out. There is a difference and reasons for choosing to name personal representatives and/or an executor and as with all the other things discussed here, this should be discussed with the attorney preparing your will. From a practical point of view, while naming your beneficiaries all as your personal representatives sounds good, it means that each and every one of them must sign the myriad of legal documents that must be processed in handling the estate. In today’s world where family members do not all live in the same state this can be burdensome. Finally, if you do choose to name an executor, it’s a good idea to discuss this with the person you have in mind. While it is certainly an honor it also requires a lot of work time. Make sure that person understands what you’re setting him or her up for.
The other area is long term insurance. This covers things like extended care either at home, in assisted living or nursing homes. This isn't exactly cheap and is best done before one gets too old. However, the consequences of not having planned for this sort of thing can literally wipe an entire life savings.
Lessons Learned from the Passing of a Loved One
While the past several months have been difficult in many ways, they have not been without valuable learning experiences. The thoughts that follow were put together to share those lessons with our friends and family for their consideration and are not to be construed as legal advice. Dealing with critical and terminal care medical issues and, ultimately estate resolution have demonstrated that taking the time and making detailed preparations for the time of our own passing, regardless of net worth or size of your estate, can save much stress, frustration and maybe even some money. The past few months have shown that our own preparations are not everything they need to be. Here are a few of the things we’ve learned. We share these thoughts, in no particular order, so that you may consider your own state of affairs and level of preparation.
- Health and Legal/Financial Powers of Attorney
Preparing a full set of legal documents to give someone the authority to make health and legal/financial decisions for you in the event you cannot make those decisions yourself is far more important than I had imagined. In today’s litigious society, expecting others to accept your instructions simply because you are a spouse, child, or partner no longer works. Two separate documents are needed.
Health Care Power of Attorney gives full legal authority for a spouse, child, etc. to make critical health care decisions on your behalf when you are unable to do so. These can be simple directions about your care while you are under anesthesia or unconscious or could be decisions about terminal care. These decisions are made easier if you have also prepared a living will or advance directive, addressed a little later in this document. In any case, without them, doctors and hospitals may require them in order to accept that someone is speaking on your behalf. Without that they expose themselves to the possibility of lawsuits.
Durable Power of Attorney for Legal and Financial Affairs assigns legal authority for someone to take care of legal and financial matters while you are unable to do so for yourself. This can be as simple as allowing someone to write checks to pay your bills while you are in the hospital to having the legal authority to sell stocks, property, etc. on your behalf. This can apply for circumstances where you are out of the country on business, vacation or military duty. While you may have simply written a check and signed a loved one’s name to pay a utility bill while they were away or incapacitated, it’s not legal and could result in complications.
These documents need to be written to comply with state specific laws and can be as specific or broad as you like. Because the smallest of details can be very important, these documents should be prepared with the advice of a lawyer.
- Living Wills and Advance Directives
While this is what most of us are reluctant to address it has the potential to save the most heart ache and stress in times of terminal care for a loved one. Essentially, these documents allow each of us to determine how we are to be treated as we reach the end of our lives. These need to be carefully thought out and discussed with the family members that will have to carry out your wishes. These decisions need to be your wishes because at critical times it may be hard for family to make a decision to let you go as opposed to go on artificial life support. The decisions that should be made are hard as they range from simply not resuscitating to withholding nourishment (remember Terry Schivos?).
Combined with the Health Care Power of Attorney described above, these documents can ensure that you reach the end of life with the same level of dignity that you lived it. As before, in preparing these documents, the details can be critical so seek the advice of your family doctor and a trusted lawyer in preparing them.
- Funeral Preparations
As with most of the things discussed here, planning for your funeral arrangements in advance forces us to face the fact that we will not live forever. Things that should be considered range from the type of funeral service, if any, you would like to have, how you would like your remains to be handled, and, if you choose interment, selecting and purchasing the site, vault, etc. The whole process can be very stressful on those you leave behind – not to mention very expensive.
It’s probably easiest to first decide how you would like your remains handled. You could choose a traditional burial, cremation or even to donate your remains, all or parts, for transplant patients or research. If you choose one of the latter two, things get easier and far less expensive. If you choose a traditional burial, or interment of your ashes, you should consider purchasing the site, vault and perhaps even the casket in advance. Purchasing a burial site in advance of an immediate need usually results in a very steeply discounted price – not to mention that you get to decide where your remains will rest.
Prices for funeral services vary widely based on the choices you make but they could range from a few thousand dollars to tens of thousands of dollars – some of which may have to be paid in advance of any insurance money being received. Making these arrangements, both logistical and financial, in advance takes a huge burden off of your loved ones and ensures that your wishes will be followed. These details can be spelled out in your will.
- Wills and Living Trusts
This is a topic that seems like it should be simple but it really gets complicated fast. The basic objective here is to decide what is to happen to the assets you leave behind when you die. A secondary, but no less important, objective for preparing a will is to do as much as you can to keep the government from interfering in your affairs and taxing your assets. While some of this will be unavoidable, there are many ways to keep this to a minimum. If you fail to prepare a will to dictate what is to happen to your estate after you die the matter, and all of the decisions, will be handled for you by the government in Probate Court. While I’ve recommended throughout this paper that you seek the advice of an attorney to help you through the details of preparing various documents and such, this is a case where there is no practical alternative to engaging an attorney, preferably one who specializes in estate law (some now call it elder law). This can be a true legal quagmire if you try to go it alone or make use of the generic forms available to you on the internet. The federal and state laws are constantly changing and being ill prepared can have significant financial consequences in the distribution of your assets. Of course, if you have found a way to take it with you or plan to spend it all before you die, then this section will not be of interest to you.
As I am certainly not qualified to provide specific suggestions on how to prepare a will that’s appropriate for you I’ll only address a few generalities. One of the first things to know is that you don’t need to be old or have amassed a fortune to need a will. Next, in discussion with your attorney, consider whether a will or a living trust is best for you. These are different instruments that are available to you to protect your assets and avoid probate and some taxation on your passing. Creating joint accounts for all of your assets is another option to consider. Depending on how the accounts are set up, you could incur additional gift taxes. In the case of real estate, you could add your beneficiaries to the deed but, once again, depending on the details of the wording of the deed, you could set your heirs up for significant capital gains taxes on the sale of the property after your death.
Finally, when creating a will, in addition to naming your beneficiaries, you can choose to name an executor or personal representatives. This is someone who will see that the details of your will are carried out. There is a difference and reasons for choosing to name personal representatives and/or an executor and as with all the other things discussed here, this should be discussed with the attorney preparing your will. From a practical point of view, while naming your beneficiaries all as your personal representatives sounds good, it means that each and every one of them must sign the myriad of legal documents that must be processed in handling the estate. In today’s world where family members do not all live in the same state this can be burdensome. Finally, if you do choose to name an executor, it’s a good idea to discuss this with the person you have in mind. While it is certainly an honor it also requires a lot of work time. Make sure that person understands what you’re setting him or her up for.
So there you have it. The thoughts expressed above are certainly not new or original. Nor are they all you need to know as you consider the state of your affairs and consider how to prepare for your death in a way that minimizes the additional stress and grief on your loved ones during what will be a very difficult time. We were fortunate in that, prior to his passing, our loved one had made most of those preparations in advance. It significantly eased the way for us and we hope to do the same for those we leave behind when our time comes – perhaps you will too.
Letter from a Member of BAUMC:
When I was eleven years old, the pastor of the Methodist Church in Aberdeen asked me if I would like to become a member of the church. I said yes. With the others who joined that day, I pledged my loyalty to the Methodist Church. I offered to give my prayers, my presence, my gifts and my service.
Throughout the years I have been faithful in fulfilling my pledge. My husband and I always tithed our income. Since he was a United Methodist minister, I learned first hand the value of good stewardship shown by the members of the churches we served.
Stewardship relates to the way we live out our commitment to Jesus Christ. When we all give generously, we do not have to be bothered with fund raisers.
A few years ago I planned my living trust. I knew I wanted to leave The Bel Air United Methodist Church a gift that would express to God and to Jesus Christ my thanks and gratitude for the years the Methodist Church has been my guide and my spiritual family.
Elaine Crowe