The first day of summer 2024 is only days away and, for many of us, summer means vacation and vacation means travel! When you are planning that long-awaited get-away, the last thing you want to think about are “worst case scenario” situations. But for the sake of your family and for your own peace of mind, it’s important that you do. Whether you’ll be taking a transatlantic flight to Europe, a road trip to the beach, a jaunt to the mountains or a quick trip to visit out-of-town family or friends, knowing that your estate plans are up to date can enhance your chance to exhale and enjoy!
Here are 5 tasks to check off your “to do” list before you leave for a stress-free vacation:
- Complete or Update Your Will.
If you’ve been procrastinating about creating your will, use your next trip as a deadline to finally get this done. If you haven’t started, start now. If you have been reviewing documents but have not officially signed anything, call your estate planning attorney to set up a meeting now instead of putting it off until you return from vacation. Remember: having an unsigned will can be as dangerous as having no will at all!
If you already have a will in place, make sure it’s current. Ideally, you should review your estate plan annually and update it as changes occur in your family (birth, death, marriage, divorce, remarriage), your finances, US tax law or the willingness or capacity of your designated personal representative(s).
- Review and Update Your Beneficiary Designations.
Take a moment to review the beneficiary designations for your IRA, 403(b), 401(k) or other financial accounts before you travel, and update them as needed to ensure that the right people receive your assets if anything unexpected happens to you on your trip. If any of your beneficiaries are minors, you may also want to consider setting up a trust to ensure that the court or someone appointed by the court won’t take control of the proceeds contrary to your wishes.
- Secure or Review Your Incapacity Documents.
Even the healthiest person can develop a health issue while traveling. Because you never know what you’ll need until you need it, everyone over the age of eighteen needs to have these documents: (1) a healthcare power of attorney, which gives another person legal authority to make healthcare decisions for you if you are unable to make them for yourself; (2) a living will, which describes what type of life support treatment you want and for how long; and (3) a Health Insurance Portability and Accountability Act (HIPAA) authorization, which gives written consent for healthcare providers to discuss your healthcare information with others, including family members.
Keep in mind that these documents are sometimes state-specific and may not be accepted in another country. So, if you're traveling internationally and will be staying in a particular country for a long time, it may be beneficial to look into how to name a medical decision-maker under that country’s laws.
- Review Your Life Insurance Coverage.
Take a look at your life insurance policy before you leave home. It’s essential to confirm that your beneficiary designations are listed the way you want them to be, of course. But it is also important to review the policy terms to see whether any of the activities you want to engage in while on vacation might void your coverage. Sometimes insurance companies will not pay out if the insured has engaged in extreme activities like bungee jumping, skydiving and scuba diving. If these types of things are on your itinerary, consider getting a short-term life insurance policy for travel.
- Organize Your Documents and Make Them Accessible.
Completing the necessary estate planning tasks before traveling is only part of the equation. Make sure that you have all your essential documents in a safe location, and don’t overlook including the access information for your digital accounts and assets. Most importantly, ensure that your adult children or other trusted family members know where to find it all and that they understand their roles and responsibilities in carrying out your wishes.
Ensuring that your estate plan meets your and your family’s needs takes planning, but the time and effort is well worth it. You’ll enjoy your vacation even more knowing that your family is protected.
Questions? Contact David Toll, JD, senior associate vice president in Drexel's Office of Gift Planning, at 215.895.1882 or giftplanning@drexel.edu.