Estate Planning for Hikers

[Ashman]

Not sure where this goes but I thought it might be helpful especially for folks planning a Long Distance hike. I am an estate planning attorney by trade and would like to offer the Whiteblaze community some general estate planning tips and observations. Now this is a very general overview. Each state has different rules and regulations. I can’t give legal advice to people who aren’t in NC (where I am licensed) *Don Pardo voice* “Void where prohibited, some restrictions apply, this article does not constitute the creation of an attorney client relationship and is for purely informational purposes only, batteries not included”. The problem with estate planning is it conjures up a lot of different and often inaccurate connotations and perceptions. Many people tell me in so many words that estate planning means “Death Planning for Really Rich Old People”

There are several problems with this “definition” the first is old. Notice how old changes? When I was in high school 30 looked pretty old to me, now 30 looks pretty good! Second issue is “rich” people use wealth or a perceived lack of it as a way of filtering themselves out of estate planning. Lastly is “death planning”. While stating your intentions after your death is a part of estate planning, there are many facets of estate planning that have nothing to do with death at all. To me estate planning has three main components: 1) I want to control my stuff while I am alive and well, 2) I want to protect myself and provide for my loved ones if I become disabled, 3) When I die, I want give what I want, to whom I want, the way I want.

The reality is, everyone reading this post has an estate plan. They either have a plan they have created for themselves or they have the one provided for them by their state legislature. We either live by design or default. Everyone has a need for what I call “The Basic Four”. These are the basic documents that everyone needs regardless of their situation.

The first is “The Will” Basically who gets your stuff and who gets your kids. Without one the state decides who gets what. For example, in North Carolina, if a husband and wife have two kids, and the husband dies without a will (in all my examples the husband dies first), the wife gets 1/3 of his estate, the balance goes to the kids. If the kids are under 18, the assets go to the court and the court manages it for them until they are 18, surviving wife has get permission from the court to use that money for kids benefit. Again every state will be different but just an example.
The second is a “Power of Attorney”. This document allows you to give another person the right to conduct business and legal actions on your behalf (ie pay your bills, file your taxes, handle your banking). You can set this up to last for a specific period of time (limited) or to go on indefinitely (durable). A limited Power of Attorney would be very useful to a thru hiker to allow someone the ability to handle “real world stuff” while on the trail. Without one, if a need arises, the court would have to declare you incompetent and appoint someone to handle your affairs. Not fun.

The third is a “Health Care Power of Attorney” some states will refer to these as a Health Care or Advance Care Directive. This document basically appoints a “chain of command” of who gets to make medical decisions on your behalf if you can’t. You could pick a hiking buddy if you are pairing up with someone. Again without it, the court decides. The most extreme recent example of what can happen without this document is the Terry Schiavo situation. A Health Care Power of Attorney would have stopped that in a hurry.

Lastly is a “Living Will”. It outlines under what conditions you can be taken off of life support. Sometimes this document is combined with the Health Care Power of Attorney.

Getting these documents are fairly inexpensive. For those who don’t think they can afford to go to an attorney there are lots of DYI options available. Often not as good (of course I am biased) but it is better than nothing. Health Care Power of Attorney and Living will can sometimes be stored with your state’s secretary of State (NC offers this). A company called Docubank (www.docubank.com) will record a copy of the documents and give you a card. In an emergency, a phone number on the card is called and they will fax the documents to the hospital, doctor of whatever.
Not wanting to start a flame war, because I know this can be controversial but most major medical polices stop covering college students once they graduate, hit 25, or are no longer considered full time. If you are still on your folks policy, check to see if you are still covered and plan accordingly.

In my opinion (again I know I am biased) this should be an integral part of anyone’s life. It is preventative planning. It is better to have it and not need it than to need it and not have it. It can be of great benefit and doesn’t add weight to your pack! I know I have thrown a lot out here but at the same this is a very general post and I have used some pretty broad brush strokes. If you have additional questions, I will be happy to answer as best as I can. This is one area where I can offer some expertise to this community that has given me so much already. I hope it is helpful.

[Miss Janet]

These are things on a lot of peoples TO DO lists... they are things the healthy, young and invincible don't like to consider and aren't a priority. But in the last several years we have dealt with major and often unexpected family illnesses and deaths where none of this had been done.

... now where is my TO DO list???

[Frolicking Dinosaurs]

Dinos are older creatures and have tackled this... not fun, but necessary. Having had several friends leave this earth way-too-soon and without a Will.... make a Will for your family's sake - especially if you have minor children and are not married to their other parent.... minor heirs complicate things considerably.

[dessertrat]

I am also an attorney, and do some Estate work. (Maryland). Please make a will if you have any assets at all, or if you have any personal property that you think others will specifically want because of sentimental value. In fact, you should have a Will even if you have no assets-- you never know if you might win the lottery or inherit money yourself, only to be run over by a bus the next day. And then the money might go to someone you don't like.

[Hooch]

And then the money might go to someone you don't like.

Like an attorney? Just kidding.

[weary]

Like an attorney? Just kidding.

Not always just a joke. People in a town near me still chuckle about the attorney who routinely listed himself as the heir of last resort when he did wills. He ended up with a multi-million dollar piece of property.

Weary

[The Weasel]

Not sure where this goes but I thought it might be helpful especially for folks planning a Long Distance hike. I am an estate planning attorney by trade and would like to offer the Whiteblaze community some general estate planning tips and observations. ***.

Great post, Ash. Take a minute and go to the "Articles" section for my article (Backpacking Law 101). Would you like to create a section (attributed) for it and merge it in, combining with some of the things I have in there? If so, PM me or email me.

TW

[sarbar]

And please add this:

No matter what:
FOR THE LOVE OF WHATEVER IF YOU HAVE KIDS OR A WIFE/HUSBAND, PLEASE HAVE LIFE INSURANCE!!!!

If you do higher risk activities it won't be cheap. You say you can't afford life insurance? You can't afford to risk your family being destitute because of your hobbies!

Here in Washington I can think of at least a dozen cases in recent years of men in their prime earning years killed while hiking and mountainering who had no insurance. These men were not poor either. They all had decent jobs. And stay at home wives with small children.

Nothing says I love you like losing your home after losing your partner. This is not something people want to think about, but it is very important.

My husband carries plenty on himself, and as well carries plenty on my head that if something were to happen to me my son would be fine finacially. It wasn't romantic when we talked about it, and it will never be. But he wanted to make sure that if anything happened to him that we would have a home, a car and food - and be able to pay bills for a couple years as well.

[buckowens]

Nice post Ashman. Very similar to what we receive in the military before heading overseas. It is nice of you to offer it to the White blaze community, some of which are younger pups who may need it, but not know it. I loved the disclaimer as well, but am saddened to see we have gotten to that point as a country. My friends and fellow soldiers in Sweden and Finland make fun of us for our litigious society...

I would also add to be very cautious before ever giving anyone a non-Health care Power of Attorney. Or any POA for that matter. Make your choices wisely and make sure you know the habits and demeanor of the person you choose. Even this is no guarantee, but it is better than picking a newly found "drinking buddy"!!

[Rain Man]

... I loved the disclaimer as well, but am saddened to see we have gotten to that point as a country. My friends and fellow soldiers in Sweden and Finland make fun of us for our litigious society...

"Litigious society" is a overblown fiction created by big business and big medicine and big insurance companies to justify their agendas. Perhaps we should be more socialized, like Sweden and Finland? I doubt you're proposing that, though it is a logical conclusion, since you chose to compare them favorably to America.

RainMan

.

[mudhead]

"Litigious society" is a overblown fiction created by big business and big medicine and big insurance companies to justify their agendas.
RainMan

.

Disagree.

Judge and the dry cleaner.

Stupid labels. I liked the iron on t-shirt transfer- Do not wear shirt...

For you Mainers: http://emmc.org/NR/rdonlyres/eko2fsj...ybzkla/MAD.pdf

This was origionally put up by the hospital in 2005. The legal types can opine on the legality of the form. I think free forms should be way of life. Including fill in the blank wills and contracts. Hint. Hint.

[dessertrat]

Disagree.

Judge and the dry cleaner.

Stupid labels. I liked the iron on t-shirt transfer- Do not wear shirt...

For you Mainers: http://emmc.org/NR/rdonlyres/eko2fsj...ybzkla/MAD.pdf

This was origionally put up by the hospital in 2005. The legal types can opine on the legality of the form. I think free forms should be way of life. Including fill in the blank wills and contracts. Hint. Hint.

You will find almost no lawyers in the United States who agree with you, whether for the plaintiffs or defendants. The dry cleaner judge is the exception that proves the rule.

[c.coyle]

Disagree.

Judge and the dry cleaner. ...

Oh, that's right. Tons of lawsuits like this are filed every day! How'd the judge make out?

[Frosty]

but am saddened to see we have gotten to that point as a country. My friends and fellow soldiers in Sweden and Finland make fun of us for our litigious society...

Hey, take it to the political forum or whatever it's called. This forum's for hiking. Thanks.

[buckowens]

Hey, take it to the political forum or whatever it's called. This forum's for hiking. Thanks.

Sorry Frosty, no offense intended. It was merely a comment on the crazy necessity to post a disclaimer on a hiking website. Sort of like the guy who sued Piper for running out of fuel because the airplane was not labeled "Don't run out of fuel or you will crash and die..." There I went and did it again, sorry, but they hiked in to the crash site!

[Rain Man]

... Sort of like the guy who sued Piper for running out of fuel because the airplane was not labeled "Don't run out of fuel or you will crash and die..." There I went and did it again, sorry, but they hiked in to the crash site!

Still pullin' 'em outta the ol backside, eh?

As you were asked once already, take these political lies to the political forums, please.

RainMan

.

[dessertrat]

And please add this:

No matter what:
FOR THE LOVE OF WHATEVER IF YOU HAVE KIDS OR A WIFE/HUSBAND, PLEASE HAVE LIFE INSURANCE!!!!

If you do higher risk activities it won't be cheap. You say you can't afford life insurance? You can't afford to risk your family being destitute because of your hobbies!

Here in Washington I can think of at least a dozen cases in recent years of men in their prime earning years killed while hiking and mountainering who had no insurance. These men were not poor either. They all had decent jobs. And stay at home wives with small children.

Nothing says I love you like losing your home after losing your partner. This is not something people want to think about, but it is very important.

My husband carries plenty on himself, and as well carries plenty on my head that if something were to happen to me my son would be fine finacially. It wasn't romantic when we talked about it, and it will never be. But he wanted to make sure that if anything happened to him that we would have a home, a car and food - and be able to pay bills for a couple years as well.

Ditto on this too. My father died when I was six years old, and had no life insurance. Instead of maintaining our lifestyle, my mother waited tables and got social security survivors benefits for us kids. Have enough life insurance for the mortgage plus three years of living expenses without the mortgage, at least.

[J5man]

Amen Sarbar! Regarding life insurance, go with simple TERM life insurance (bascially get 10 x your annual salary) (when you die, it bascially replaces your income for your family - they take the proceeds and invest it in something getting a 10% return and voila it generates the income that you had coming in) It is less expensive that WHOLE LIFE and all the other tricky life insurance products. Check out www.daveramsey.com for his opinion this and other finacial ideas. The purpose of life insurance is to give your family an immediate estate (i.e. $500,000 or so) in lieu of not having that much saved or on hand. Life insurance is a MUST for anyone with a family.

[c.coyle]

Amen Sarbar! Regarding life insurance, go with simple TERM life insurance (bascially get 10 x your annual salary) (when you die, it bascially replaces your income for your family - they take the proceeds and invest it in something getting a 10% return and voila it generates the income that you had coming in) It is less expensive that WHOLE LIFE and all the other tricky life insurance products. ...

Good advice. Whole life and "universal life" are usually not the best, and almost never the cheapest, options. It's death insurance, designed to replace income if you croak. K.I.S.S. Life insurance should not be for saving money. Buy term and invest the difference if you want to build a nest egg.

Term insurance for younger, healthy people is cheap*. Anyone with dependents - man or woman, parent or spouse - who dies without life insurance is just downright irresponsible.

* Yes, when you get older, term insurance gets more and more expensive, but the kids are out of college, the mortgage is paid, you've put some $$$ aside, so you need less.

(I'm waiting to see if we have any insurance agents here)

[Panzer1]

Good advice. Whole life and "universal life" are usually not the best, and almost never the cheapest, options. It's death insurance, designed to replace income if you croak. K.I.S.S. Life insurance should not be for saving money. Buy term and invest the difference if you want to build a nest egg.

Whole life/Universal life insurance is more that just death insurance its also has an investment component to it where you can save and invest money in stock market, bonds, ect, take pre-approved loans at low interest rates, increase/decrease your coverage as your needs change, and many more useful features. There are also some tax advantages to the investment aspect of the policy. However, I agree that most people are better off with just simple term life insurance.

Panzer