Why Every Adult in Indiana Needs an Estate Plan

Estate planning is not just for the wealthy or the elderly. Every adult in Indiana can benefit from having estate planning documents in place. Here is why it’s important and what a basic plan should usually include.

Many people assume that estate planning is only for the wealthy or elderly. In reality, every adult can benefit from having an estate plan, regardless of how much they own or how old they are. An estate plan is a set of legal documents that allow you to decide in advance what happens to your property, finances, and healthcare if you cannot make decisions for yourself or pass away. A basic estate plan should include a last will and testament, a durable power of attorney, and an advance directive. More complex estate
plans might also include trusts.

If you do not have an estate plan, Indiana law determines what happens to your assets after you die through what is called intestate succession.  Under Indiana’s intestate succession rules, your property is distributed to your closest living relatives based on statute, which might not align with your actual wishes. For example, if you are married with children, your spouse does not automatically inherit everything. Some of your estate may pass to your children, which can be complicated if any of your children are minors. If you have a will or trust in place, you can choose how your property is divided and name a guardian for your minor children.

An estate plan should generally also include a durable power of attorney for finances. This allows you to designate a trusted person to manage your financial affairs if you are unable to do so yourself. Without this document, your family may need to petition the court for guardianship over you in order to access your bank accounts, pay your bills, or manage your property. These guardianship proceedings can be time-consuming and expensive, and a properly drafted power of attorney can help avoid them.

Another important document in an estate plan is an advance directive. This document allows you to name a person to act as your healthcare representative. Your healthcare representative can then make medical decisions on your behalf if you are unable to communicate your own wishes. An advance directive also allows you to state your wishes about life-sustaining treatment if you are terminally ill or in a persistent and irreversible coma.

Estate plans are not static documents. Life events like getting married or divorced, having a child, the death of a beneficiary, a significant change in assets, or a move to a different state may all warrant updating your plan. Reviewing your estate plan regularly helps ensure that your documents continue to reflect your current wishes and circumstances.

The estate planning attorneys at McNeelyLaw are ready to help you create a plan that protects you and your family. Whether you need a basic will and power of attorney or a more comprehensive plan that might include a trust, we are here to help. Contact us today to schedule a consultation.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.