Cooperative Living February 2017 - 25

YourBusiness | by Allison Goldberg, Contributing Writer
Estate planning is for everyone
Creating a plan for your estate will provide the gift of guidance and peace of mind for your loved ones.
A
ll co-ops have emergency
plans to help ensure smooth
operations no matter what
may occur. Likewise, no matter
what your level of health or wealth,
you should also plan for
contingencies in case you become
mentally or physically incapacitated.
Creating a plan for your estate,
which includes your possessions,
bank accounts, investments, life
insurance and even your pets, will
provide the gift of guidance and
peace of mind for both you and
your loved ones. Without an estate
plan, the Commonwealth of
Virginia dictates the transfer of any
assets that do not pass by joint
ownership or beneficiary designation.
An estate plan provides instructions
for how money, medical care and funeral
arrangements are handled, and to whom
and when money and possessions are
distributed. Having one will not only
help ensure your wishes are executed,
but minimize costs and potential hassles
for your heirs. Here are a few tips for
getting started.
INVOLVE FAMILY AND FRIENDS
WHO MAY BE AFFECTED OR
INCLUDED IN YOUR DISCUSSIONS
Transitions and financial transfers will
likely go more smoothly if you explain
your thought process to your heirs.
Caregivers for minor or disabled
dependents, caregivers for pets and
financial trustees should be consulted
before you include them in your plan.
Caregiving is especially important if any
of your dependents have special needs.
If you have a business, you also need to
provide for its transfer upon your death
or disability.
USE ESTATE PLANNING AS AN
OPPORTUNITY TO ORGANIZE AND
CORRECT FINANCIAL DOCUMENTS
Before getting into the details of your
estate plan with an estate-planning
professional, review and catalog all of your
financial assets. As you do this, check the
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legal guardianship of minor
children or dependent adults;
you can also appoint a trustee
to manage the distributions, sell
assets and perform other fiduciary
tasks. A durable power of attorney
appoints someone to make
medical and other decisions on
your behalf should you become
incapacitated or disabled, and your
living will should include detailed
health directives.
Most experts
beneficiary information, and
make sure the contact
information and allocations are
still correct; if information and
allocations are incorrect, gather
the correct information, and make
time to correct the errors. If you
haven't already, file these documents
in a fireproof box or safe. Life insurance,
retirement accounts (workplace accounts
and IRAs) and annuities all transfer upon
your death via beneficiary designation
rather than through your will. Since these
can represent a major share of your estate,
it is important that such designations are
kept up-to-date.
recommend beginning
your estate plan with
life insurance, a will,
a durable power of
attorney, a healthcare
power of attorney and
a living will.
HIRE AN ESTATEPLANNING
PROFESSIONAL
If
you already have
a certified financial
planner, they can
guide you from the
beginning of this
process and refer you
to an appropriate lawyer.
Having an estate-planning
professional to help guide and educate
you can save you money on attorney's
fees. Low-income individuals and families
can contact their state's legal aid society
and bar association to find low- or
no-cost consultations.
As a member of an electric cooperative,
also include information about the process
for the legal representatives of your estate
to request any unclaimed capital credits.
This typically includes completing a copy
of the co-op's affidavit form and having it
notarized to submit along with a copy of
the death certificate.
START WITH THE BASICS
Most experts recommend beginning
your estate plan with life insurance, a will,
a durable power of attorney, a healthcare
power of attorney and a living will. The
life insurance should cover burial expenses
and replace lost earnings, which is
particularly important for young families.
The will should specify how you would
or would not like your assets divided and
transferred following your death, as well as
detailed arrangements for the financial and
PERIODICALLY REVIEW YOUR PLAN
Your estate plan should continue to
evolve as your life does. Review your plan
at least every 10 years and more frequently
if you experience major life events, such as
births, deaths, marriages, divorces or
retirements that could change your wishes.
Using these milestones as reminders to
review and update beneficiaries,
allotments and health directives will
guarantee your estate plan reflects your
most recent wishes. Planning ahead
ensures that your loved ones will have
guidance and reassurance. 
Allison Goldberg writes and edits employee benefitsrelated
materials for the Insurance & Financial
Services Department of the National Rural Electric
Cooperative Association, the Arlington, Virginiabased
service arm of the nation's 900-plus
consumer-owned, not-for-profit electric cooperatives.
February 2017 | Cooperative Living | 23

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Cooperative Living February 2017

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