For many, traveling this time of year is a welcome escape from the cold and everyday life. What most travelers do not consider is what should be a relaxing trip could place them in a legally vulnerable situation. If someone becomes ill, has an accident, or dies while traveling and their estate plan is outdated or incomplete, the result can quickly turn into a logistical nightmare. Too many people assume estate planning is something to address later in life, when there are meaningful steps that can be taken now to protect both themselves and their loved ones.
Travel can bring to light problems in estate plans that may have gone unnoticed for a long time. Beneficiaries may not be the same people you are close to now. Additionally, access to estate planning documents is another issue that can easily come up during travel emergencies. For example, if paperwork is only kept at home in a hidden safe or on a computer that no one else can access, it may be hard for those appointed to act quickly. Even well-prepared documents are not helpful if no one knows where to find them.
As travel highlights these problems in estate plans, it is often a good time to consider whether key estate planning documents are in place,up to date, and accessible to the appropriate persons. There are many tools that can be used in an estate plan. In Minnesota, a health care directive, statutory short form power of attorney, and will are three documents that are important to review prior to traveling.
Health care directives are essential for most. In Minnesota, a health care directive can include certain health care instructions, as well as the appointment of a health care agent to make decisions for the principal.[1] In situations where decisions must be made quickly, such as end-of-life care or organ donation, it is helpful to have clear documentation in place. Further, when medical care is provided away from familiar doctors and facilities, a health care directive can help ensure that someone trusted is making those big decisions for the principal.
Health planning is only one side of the picture. Financial decision-making matters as well. A power of attorney authorizes an individual to act in another’s place as agent or attorney-in-fact with respect to some or all legal and financial matters.[2] This document should be current and name someone who is trusted and able to act. An attorney does not have to be named. If the named individual is difficult to reach, or overwhelmed by other responsibilities, this can cause delays. Being away from home, while incapacitated, can show how important it is for someone to step in to pay bills or handle urgent financial matters.
A will remains an important part of any estate plan, even though it is not often necessary to reference a will while traveling. A will generally expresses a person’s wishes for how assets subject to probate should be distributed and appoints someone to carry out those wishes.2 It can include many different types of provisions, and for individuals with children, it is where guardianship decisions for minor children can be addressed.
Another important document for families with minor children to consider before traveling is a delegation of parental authority. This document allows parents to temporarily delegate decision making authority over their children to a trusted adult while they are away or if they become incapacitated.[3] Additionally, this document can authorize the caregiver to make day to day decisions, consent to medical treatment, and communicate with schools or other providers if needed.
Viewing estate planning through the lens of travel helps to look at it as a practical tool. For example, just as travelers prepare passports and itineraries, having an updated and accessible estate plan helps create peace of mind. To learn more about creating or updating an estate plan, contact Fryberger at 218.722.0861.
[1] Minn. Stat. § 145C.45, SUBD 2.
[2] https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/glossary/
[3] Minn. Stat. § 524.5-211
