Joanna Feltz, a board-certified Indiana trust and estate lawyer with Koehler Law LLC, specializes in senior planning, and encourages all individuals to plan for their future before others are forced to decide for them.
“Everyone needs a plan,” Feltz said. “Everyone should have, at minimum, a power of attorney. If I am incapacitated and can’t make these decisions, I’m able to decide who will step in for me. Everyone should have a last will and testament. People often say they don’t have enough funds to create a trust, but it can be used by anyone. The amount of money you have doesn’t dictate if you can have a trust or not.”
It’s not a pleasant thought. No one enjoys talking and planning for the day they become incapacitated or pass away.
“I think if you did a survey, you’d find oftentimes, because we don’t want to talk about this, we avoid it altogether,” Feltz said. “Other times people just aren’t sure where to start. Many of our clients work with a financial advisor and those professionals will identify the fact that you need an estate plan. If you’re getting advice about other things, it’s likely you’ll also go forward with an estate plan.”
Feltz said there are plenty of benefits to planning ahead and making sure things happen the way you wish.
“The most important thing about the power of attorney, last will and testament, and living trust is, if successfully integrated, it can move with you while you’re alive, and well to when you can’t make your own decisions,” Feltz said.
You can also bypass court proceedings and avoid probate – something loved ones will appreciate.
What happens if we choose to avoid the subject?
“If you don’t have a power of attorney in place or last will and testament, someone has to go to court to get a guardianship instituted,” Feltz said. “If you execute that ahead of time, you’re able to make that decision for yourself. If you have multiple children, inevitably the child you wouldn’t want in charge of things ends up being in charge of things.”
It’s a positive thing to do for loved ones, and often helps families navigate the difficulties of an ill family member or a loss.
In 2025 Feltz said we’ll hear a lot about inheritance tax, or death tax as many call it.
“By the end of 2025 the federal estate tax will sunset and go back to what it was in 2018 if it doesn’t get reinstated or pass legislation,” Feltz said. “Right now it’s nearly $14 million and doesn’t impact most people, but if it reverts back to $5 million, adjusted for inflation, many more might be affected. You’ll hear a lot about this in 2025.”
It’s all the more reason to seek out advice and guidance when planning for the future.
“If someone is sitting across from me, this is the advice I’d give my own parents,” Feltz said. “Have a plan and be the person who picks the person to manage your health care and finances if you are unable to. Consider the ways in which you want someone to inherit from you that safeguards it for them.”
