Greg Smith Senior Vice President & Director of Private Client Services

Being the doctor in the family comes with pride and peril.

While “Uncle John” is quick to talk about you in glowing terms to his friends on the golf course, he also won’t hesitate to ask you about his arthritis or his appendectomy, just as you are trying to relax after Thanksgiving Dinner. And while your mother has bragged about you to all of the neighbors, she will also turn to you at the least opportune moment to have a prescription refilled or to ask about the indigestion she gets when she eats pepperoni pizza.

As your parents age, you will likely be called upon more frequently for health care advice. While that role will be crucial, there is another critical task you must perform: Making certain you and your parents have taken the proper steps to plan for your estates in the event of death or disability.

It is estimated that approximately 50 percent of all American adults have not drawn up a will. This can result in probate costs and the courts deciding what to do with assets that you and your parents have worked all of your lives to earn. 

It is a common myth that only wealthy people need an estate plan.  In fact, it is prudent for everyone to determine in advance how their assets will be distributed.  It is important to ensure that upon your death your assets will go to the beneficiaries you intended and that the taxes, fees and costs associated with your estates will be minimized.

Without an estate plan, everything you have worked to achieve will be at risk. If you are not certain where to begin, start with these five steps.

1. Find a financial advisor you trust.  If you do not have one, ask your friends, your attorney and your colleagues whom they might recommend.  With the help of your financial professional, develop an inventory of your savings, investments, retirement plans, real estate titles and liabilities. Your tax preparer should have this information readily available.
2. Create your financial goals for retirement. Remember, your retirement could last 30 years or more. Don’t forget that health care may be your largest retirement expense. If you are nearing retirement, make certain you will have the appropriate health insurance and possibly long-term care insurance.
3. Obtain a durable power of attorney in the event of disability. A durable power of attorney will give someone you have designated the ability to take care of your finances in the event of incapacitation. Regardless of your age, you need a durable power of attorney to help protect your assets.
4. Write a will. It is an unpleasant subject that we all try to avoid. But if you haven’t yet written a will, it is important to do so. This will allow you to maintain control over your assets. If you have children, you can place in the will instructions on guardians for them. Work with your attorney or ask your friends to recommend one who can assist you with the process.
5. While you are planning your estate and drawing up a will, it is also a good time to create a living will. In all likelihood during your practice of medicine, you have witnessed the consequences of patients who do not have clear health care directives in place.

Once you have taken these steps to preserve and protect your own wealth, make certain your parents have done the same. Not only will this help to protect their estates and avoid probate costs, it will also go a long way to eliminate any sibling rivalry in the family in the event your parents die without a will in place.

Finally, once your estate plan is established, update it periodically to keep it current. Estate planning is not just for the Donald Trumps and Bill Gates of the world. It is for everyone who wants to protect, preserve and control the disposition of their assets.