Hello everybody. It's Peter Klenk. And let's talk a little bit more about death and taxes. So today, the subject is estate planning for thirty-somethings. Why do thirty-somethings need a will, or estate planning in general?

I know estate planning is kind of a vague statement that people don't really understand. So let's stick with wills and related documents. If you're younger—twenties, thirties—you’re out in the world. You're working, making money, and you may have some real estate. You may not. I’m leaning towards people who don’t have kids. If you happen to have kids, this is a whole different subject.

Of course, kids add a whole layer of complication with a series of concerns and things you should address. But let's talk today about people who don't have kids. Why do you need estate planning documents? Now, grant me, as an older fellow, the ability of hindsight to say that when you're in your twenties and thirties, you might think nothing’s ever gonna go wrong and you’re gonna live forever. These aren’t necessarily true, of course.

Part of that mindset is just human nature, and it causes a lot of us, when we’re younger, to think that we don’t need to take certain precautions or prepare for emergencies because, in our minds, they just can’t happen. But okay, guys, doing a little preparation, just in case—even though the odds are very small—can really help you out because it’s not that hard or expensive to take certain steps. Even if nothing ever happens, you’re prepared.

For the same reason you have car insurance, and maybe even life insurance at this age, you should consider these documents. Why? Just in case. You never know. So what documents are we talking about?

What preparation is needed? The most important one is probably the smallest: the medical power of attorney and living will. In some states, these are two separate documents; in others, they are merged together. But overall, these documents deal with who speaks for you if you have an accident and can’t speak for yourself in the hospital.

In today’s world, with private data protection and HIPAA, it’s crucial that medical professionals do not share your data unless they know the person they’re speaking with has access to it. They can get in trouble for sharing your data. You might think that if you’re in an accident, your girlfriend, boyfriend, mom, or dad will be able to get the information. Maybe, but you’re putting the doctor in a difficult position.

You could have a power of attorney that gives access to your data to anyone, but the doctor might not know you or what you’ve done. If your mom or dad are in the hallway asking for information about you, but you have a power of attorney that only allows your significant other to access the data, the doctor is in a tough spot.

If they tell your mom or dad something, you might later take offense. But how is the doctor supposed to know? Taking this step is good for you and everyone around you, and it may help you get medical attention much faster. It’s beneficial for you.

So, what are these documents? One is the medical power of attorney. This document grants someone the power to act for you in medical matters. A power of attorney can be very narrow; for example, you might give Bob the right to sell your car to Fred for thirty thousand dollars on Tuesday. But it can also be very general, called a general durable power of attorney, where you give someone the authority to do anything you could do.

A medical power of attorney is focused on medical care. It grants someone either a very narrow power, such as acting for you during a specific surgery, or a broad power to make decisions if you become incapacitated and can’t make decisions for yourself. This person becomes your agent, and their words and signature are considered yours. By granting this power, you typically grant protection under HIPAA and access to your data.

Usually, it’s a broad document covering any medical issues that could arise. Ideally, you have a backup, though you only need one person to act for you. If the doctor feels you’re not able to make decisions yourself, this person will speak for you. You can name two people, such as your mom and dad, who can act independently. Doctors are usually fine with that. If only one is present, the doctor will communicate with that person. If both are present, they would act together.

Another important factor is choosing someone who can do what you want. If you don’t want to be removed from medical care, ensure the person you choose will follow your wishes, even if they disagree. Alternatively, if someone can’t follow through with your wishes, you need to pick someone else. In today’s world, you need someone who understands what a PDF is and how to share an electronic copy. You should provide your agent with a copy, which they can keep on their phone or computer. No matter where they are—whether on Earth or in space—they can send it to the nurses' station and assist you. Hospitals no longer require hard copies, and if your agent doesn’t have access, they can’t help you.

So, it must be someone who fits these characteristics: they can do the job, will follow your wishes, and are ready to act when needed. That’s the medical power of attorney.

The other part is the living will, which is the oldest document. If you were an archaeologist, you’d see that this document has existed since doctors could do more than just hold your hand. It addresses when doctors should stop treatment if you are incapacitated and cannot communicate.

The living will specifies your wishes regarding medical treatment, such as being removed from respirators, receiving surgery, blood products, or other medical care. Most states have their own version of this document, so make sure you have it prepared. The doctor generally wants to follow your wishes, but if you don’t fill out this document, how are they supposed to know?

Another essential document is the financial power of attorney, or durable general power of attorney. This document designates who can manage your financial affairs if you’re unable to. This includes accessing your bank accounts, dealing with your apartment, managing your insurance, and handling other financial matters. Without this document, your loved ones may have to go to court, which is expensive and time-consuming.

Finally, there’s the will. Even if you only have one bank account and an IRA with named beneficiaries, having a will simplifies things if something goes wrong. Without a will, the law dictates who inherits your assets, which can lead to complications and disputes among family members.

A will allows you to specify who will handle your estate and funeral arrangements. Even if you don’t care about this, it’s better to have a plan in place. You may have specific wishes for your funeral, such as fireworks, being turned into a diamond, or being buried at sea. The only way to ensure your wishes are followed is to name someone with authority to carry them out.

In summary, these documents ensure you are prepared and make things easier for those around you. The process is straightforward, especially if you don’t have children, and it’s relatively inexpensive. If you want to know more or get a free consultation, give us a call. If you’re in New Jersey or Pennsylvania, we’re here to help.

Thanks for listening to the Klenk Law podcast. Please subscribe, rate, and share. I’ll provide more suggestions and helpful tips on these topics in future episodes. Be well!