Steps to Take in Advance of Disability or Death

Although none of us wants to contemplate a time when we or a loved one might become disabled or die, it is important to be prepared. There are many steps families can take in advance of death or disability to avoid future conflicts or uncertainties:

- Don't be afraid to start the conversation. Whether you are a parent talking to your children, a husband talking to a wife, or an adult child talking to an aging parent, bringing up the topic of death and disability can be difficult, but it is an important conversation to have. A recent study by The Hartford found that parents were more willing to discuss estate planning issues than their children.

- Make sure you or your loved ones have done estate planning. All estate plans should include, at minimum, two important estate planning instruments: a durable power of attorney and a will. The first is for managing property during your lifetime, in case you are unable to do so yourself. The second is for the management and distribution of property after death. Revocable (or "living") trusts can also help you avoid probate and manage your estate both during your life and after you're gone. In addition, you or your loved ones should consult with an estate planning attorney about the best way to minimize estate taxes.

- Plan for the worst. You and your loved ones need to be prepared in the event that one of you becomes disabled and will no longer be able to make your own decisions. The durable power of attorney mentioned above is an important instrument. You will also need a health care proxy (sometimes called a health care power of attorney), which gives someone else the medical authority to communicate your wishes about medical treatment.

- Determine you or your loved ones' wishes regarding funeral arrangements. You may want to pay for your funeral ahead of time to take the burden off of family, but you need to be careful and shop around. If you can't make arrangements ahead of time, put your wishes in writing so the whole family knows what you want. This subject is typically covered in an Advance Health Care Directive.