Why Proactive Estate Planning Matters

We all tend to put off things we don’t want to think about. But when it comes to estate planning, waiting can be costly — and sometimes catastrophic.

I’ve met with a number of clients recently who are facing various stages of diminished capacity — either for themselves or for family members. And what stands out every time is how many people wait until a health crisis or diagnosis hits before getting an estate plan in place. The problem is: by that point, it’s often too late to make thoughtful, strategic decisions.

Did you know that a significant percentage of adults will face some form of incapacity before they pass away? Whether due to illness, injury, dementia, or mental health issues, this is not something limited to old age. Life is unpredictable — and estate planning is about more than distributing assets at death. It’s about protecting yourself and your family during life as well.

Here are a few key things to keep in mind:

1. The best time to plan is when you are healthy and capable

In Nebraska, legal documents require the person signing to have legal capacity — meaning they understand what they’re signing and the consequences of it. If capacity is lost, it becomes impossible to execute valid documents. At that point, your family’s only option is to go to court for a guardianship (to handle personal and medical decisions) and/or a conservatorship (to handle financial matters). That process is time-consuming, expensive, and stressful — especially in the middle of a crisis.

Planning ahead gives you control over who will manage things for you and how those decisions will be made. Once a crisis hits, options narrow fast.

2. Durable Powers of Attorney are foundational — and they need to be current

Every adult should have Durable Powers of Attorney in place:

• Durable Power of Attorney for Financial Matters — allows someone you trust to manage your financial affairs if you become incapacitated.

• Health Care Power of Attorney (also called Durable Power of Attorney for Health Care) and a Living Will/Advance Directive — allows trusted individuals to make medical decisions and express your wishes regarding end-of-life care.

• Mental Health Treatment Authorizations — this is often included in the Health Care Power of Attorney, but sometimes requires additional language. It allows your chosen individuals to access sensitive mental health records and make treatment decisions if you cannot. Mental health information is subject to stricter privacy protections, and standard HIPAA releases alone are not always enough.

Outdated or poorly drafted powers of attorney can cause big problems. Financial institutions may refuse to honor old documents. Medical providers may hesitate to share information or accept directions from someone not clearly authorized. Reviewing and updating these documents regularly is critical.

3. A revocable living trust offers important protection

For many clients, adding a revocable living trust is one of the most effective ways to plan for potential incapacity. A funded living trust allows your chosen successor trustee to step in and manage your assets if you become incapacitated — without needing court involvement.

Without a funded trust, your family may still need a conservatorship to manage assets that are solely in your name. But with a properly funded trust, they can manage everything seamlessly — avoiding court, delays, and extra costs. And of course, a revocable living trust also helps avoid probate at death for the assets titled in the trust.

At the end of the day, estate planning isn’t just about what happens after you’re gone. It’s about protecting your well-being and reducing stress for your family during life — when those decisions matter most.

And it’s important to remember: your estate plan is a living document. It should be reviewed and updated over time — especially after major life events, changes in health, or shifts in family structure.

If you’ve been putting off your estate plan — or if it’s been years since you reviewed it — now is the time to get it done. The best time to plan is before you need it.

If you’d like to start that conversation, or review your current documents to make sure they still fit, reach out. You can contact me at 402-259-0059 or email zach@zandersonlaw.com. I’m here to help.