Even if you don’t have millions, you still need an estate plan. Preventing bad outcomes with strong estate planning should be a goal of every responsible adult states Beck, Lenox & Stolzer Estate Planning and Elder Law. Having the appropriate estate planning documents ready can help avoid costly errors, delays in care and family disputes. A recent article from CNBC, “Estate planning helps ‘forestall bad outcomes,’ author says – you need some key documents even at age 18,” explains what needs to be done to prepare for the challenges of life.
One woman learned this the hard way. When her father died, she had her mother create a new estate plan with an estate planning attorney. A power of attorney and a last will and testament were executed, and the mother and daughter believed their affairs were in order. However, they hadn’t taken the POA to the bank and put it in force, so when the mother needed surgery, the daughter had to wrangle with the bank to gain access to her account.
When she took over her mother’s finances while her mother was recovering from surgery, the daughter learned her mother had fallen behind in long-term care payments. The POA was still unresolved, so the daughter had to pay $6,800 out of her own pocket to keep the policy current.
As people age, they are more likely to make financial missteps that require spouses or adult children to intervene and resolve them. This is ideally done before their mistakes become major expenses. The same vulnerability makes older adults victims of scammers, which undermines many seniors’ retirement accounts.
Failing to take the Required Minimum Distributions from retirement accounts can also be costly. A research study from one major investment institution found that investors who miss their RMDs incur an average penalty of more than $1,000.
How do you avoid these expensive mistakes? Planning, with the help of an experienced estate planning attorney. A last will and testament allows individuals to decide how their assets are distributed upon death. This is especially important for homeowners, as the home is usually the largest asset in their estate.
Estate planning isn’t just for seniors. Anyone over the age of 18 should have documents in place authorizing another person to manage health and financial matters in an emergency. Without a healthcare proxy or healthcare power of attorney, for example, parents can’t make a doctor’s appointment, discuss their child’s care with healthcare providers, or make medical decisions on their behalf. Everyone also needs a HIPAA authorization to allow another person access to personal health information. A living will lets a person provide specific instructions for the care they want or don’t want if they are dying.
Every component of estate planning serves a purpose, but it also has limitations. For example, a POA grants authority to make financial decisions. However, it doesn’t extend to medical decisions. This is why an experienced estate planning attorney is needed to craft an estate plan tailored to the individual’s unique needs.
If cost is a concern, note that what is paid today is far less than what would be required if no planning is undertaken. The cost of dealing with an estate or an incapacitated parent is much higher when no planning has been done. Court costs and attorney fees if a guardianship or probate is needed will be far more costly in the great majority of cases vs. putting an estate plan in place.
Speak with an estate planning attorney to have an estate plan done if you don’t have one, or schedule a review if your estate plan is more than three to five years old. It’s a gift for those you love. New clients can schedule here.
Reference: CNBC (Jan. 3, 2026) “Estate planning helps ‘forestall bad outcomes,’ author says – you need some key documents even at age 18”
