A serious car crash can change much more than someone’s physical health. It can affect income, property, business operations, medical decisions, government benefits, and the financial security of an entire family.
That raises an important question: If a crash left you unable to manage your own affairs, would your estate plan actually work?
I recently welcomed estate planning and elder law attorney Mike Bascom to Crashes, Claims & Clarity. Mike helps families, business owners, retirees, and veterans prepare for the situations most people would prefer not to think about.
Our conversation revealed an important truth. Estate planning is not simply about deciding who receives your property after you die. It is also about making sure the right people can act for you while you are still living. A serious crash can create legal and financial challenges that extend far beyond the initial injuries, and an Athens, GA car accident lawyer can help families understand their rights and options during difficult times.
Having Documents Is Only the Beginning
Mike explained that an effective estate plan should meet three basic requirements:
- It must be in writing.
- It must be current.
- It must comply with the laws of the state where you live.
When someone dies without an estate plan, state law determines how that person’s property will be distributed. That generic plan may bear little resemblance to what the person actually wanted.
An estate plan can also become outdated. Marriages, divorces, births, deaths, health changes, business growth, and moves to another state can all affect whether the original plan still works.
Mike recommends reviewing an estate plan regularly, particularly after a significant life event. A document created years ago should not be treated as something that can be placed in a drawer and forgotten.
Asset Ownership Can Override Your Instructions
One of the most important lessons from our conversation involved asset ownership.
A will might say that property should pass to a current spouse or children. However, a life insurance policy could still name a former spouse as its beneficiary. A jointly owned home or financial account may pass automatically to the surviving owner, regardless of what the will says.
Mike identified this as one of the most common estate-planning mistakes he encounters.
The documents, beneficiary designations, property titles, and account ownership must work together. Otherwise, the result may be very different from what the person intended.
A Settlement Requires a Plan
When someone receives a significant personal injury settlement, the natural temptation may be to spend, invest, or distribute the money quickly.
Mike’s advice was simple: slow down.
A settlement may need to last for many years and cover medical care, lost income, housing, and other long-term needs. If the injured person receives government benefits, the way the settlement is handled could also affect eligibility for those programs.
Before major financial decisions are made, the injured person and family should consult the appropriate legal and financial professionals.
Business Owners Face Additional Risks
Many married business owners assume their spouse can automatically take control if they become incapacitated. That may not be true.
Without the proper authority, a spouse may be unable to access business accounts, sign contracts, remove an employee, complete a transaction, or continue receiving income from the company.
The same problem can affect rental property owners. If the owner personally manages the properties and suddenly becomes incapacitated, someone must have the authority to collect rent, communicate with tenants, pay expenses, and make necessary decisions.
A strong business succession and incapacity plan should answer those questions before an emergency occurs.
Your Helpers Need a Roadmap
An estate plan depends on more than attorneys, accountants, financial advisors, and insurance professionals. It also depends on the family members or trusted individuals who will eventually carry out the plan.
Mike calls these individuals the “helpers.”
If they do not know where documents are located, what responsibilities they have, or what the individual wanted, a medical crisis or death can turn into an expensive and emotional treasure hunt.
Preparing those people in advance can reduce confusion, control costs, and expose family disagreements while there is still time to address them.
Fair Does Not Always Mean Equal
One of the most thoughtful parts of our conversation focused on inheritances.
Parents frequently feel obligated to leave every child exactly the same amount. However, children may have very different financial abilities, personal circumstances, marriages, health concerns, and relationships with their parents.
A beneficiary who struggles with money may need a trust or other protections. Another may be capable of receiving an inheritance outright. Thoughtful estate planning allows families to create solutions based on real people rather than treating every situation as identical.
The Time to Plan Is Before the Crisis
A car crash provides no warning. Neither does a stroke, sudden illness, or unexpected death.
The purpose of estate planning is not to predict when something will happen. It is to make sure your family is protected when it does.
Review your documents. Check your beneficiary designations. Make sure someone can manage your finances, business, and property if you cannot. Most importantly, make sure the people responsible for carrying out your wishes understand the plan.
Listen to my complete conversation with Mike Bascom on Crashes, Claims & Clarity:
Crashes, Claims & Clarity
Learn more about Mike at BascomLaw.com.
If you have been injured in a Georgia accident and need guidance concerning a potential personal injury claim, visit Burrow & Associates.
This article is provided for general educational purposes only and is not intended as legal advice.
