We put together this short quiz to help you gauge where you stand. There's no grade, no judgment; just an honest look at your level of preparedness, along with insights we've gathered from years of working with clients throughout Virginia, West Virginia, and Maryland. Whether you're starting from scratch or it has been a while since you reviewed an existing plan, we hope this sparks a meaningful conversation about what's most important to you and your loved ones!
Question 1:
True or False: Naming one person as your power of attorney is enough to cover both financial and medical decisions. Once the document is signed, your planning is complete.
Answer: False.
This is one of the most common misconceptions we encounter. The truth is, designating powers of attorney requires careful thought. The person who's best suited to manage your finances (perhaps someone with business experience or accounting knowledge) may not be the right choice for medical decisions, which often require quick thinking, emotional resilience, and a deep understanding of your values.
It's completely okay to split these responsibilities. In fact, we encourage it. Choose individuals for each role based on their strengths, judgment, and ability to handle pressure. This approach not only ensures your wishes are followed but also helps prevent family conflict during already difficult times.
Don't forget to name a successor for each role in case your first choice can't serve. And once your documents are signed, make sure they're organized and accessible to those who'll need them. Estate planning isn't a one-and-done task; it's an ongoing conversation.
Question 2:
"If I don't have significant wealth, do I still need an estate plan?"
A) No, estate plans are only for people with large estates or multiple properties.
B) Only if I have minor children.
C) Yes, an estate plan helps manage and distribute everything I own, from bank accounts to personal items, and ensures my wishes are clear.
D) Not until I'm retired.
Answer: C.
Estate planning isn't about how much you have; it's about making sure your family isn't left guessing when something unexpected happens.
An estate plan answers critical questions: Who can make medical decisions if you can't? Who will care for your children? Who gets that family heirloom or your savings account? Without clear instructions, these decisions can cause conflict at the worst possible time.
Here's a practical first step: take inventory of what you own. A bank account, a car, sentimental belongings, digital accounts—these all need to be accounted for. Creating a personal financial statement ensures that everything can be easily located, tracked, and administered when needed.
Without a plan in place, state laws governing estates take over, and these laws vary across Virginia, Maryland, and West Virginia. If your family structure is nontraditional, the court might appoint someone who isn't the best suited to act in your interests. Additionally, your loved ones will likely face probate court, a process that's slow, public, and expensive. The stress, cost, and uncertainty of not having a plan far outweigh the effort of creating one.
Question 3:
True or false: A will takes effect while you're alive, whereas a trust only becomes active after your death.
Answer: False.
It's actually the opposite. A will only takes effect after you pass away, which means your loved ones must navigate probate court. A trust, on the other hand, can take effect while you're still living and continues to operate after your death. If you become incapacitated, your trustee can step in immediately to manage the property and make the decisions outlined in the trust. No court involvement is necessary.
Think of it this way: a will is a letter of instructions that's opened after you're gone. A trust is a secure container that holds your assets with directions attached, which becomes effective immediately.
When should you consider a trust? If you have notable assets, want to spare your loved ones the probate process, or plan to leave larger inheritances to minor children, a trust may be the right choice. You might also want to appoint a representative who can clearly communicate your wishes if questions or concerns arise down the road.
Question 4: At what stage of life should you start estate planning?
A) After retirement.
B) Once you have significant assets.
C) As soon as you're an adult with responsibilities or dependents.
D) Only after you purchase a home.
Answer: C.
Estate planning isn't something reserved for later in life. It becomes essential as soon as you have responsibilities, assets, or people depending on you.
At a minimum, every adult should have these "in case of emergency" documents:
- A will (even a simple one)
- Healthcare power of attorney
- Financial power of attorney
- HIPAA authorization
These documents protect you if something happens unexpectedly. If you were in a serious accident or became ill without these in place, your partner might not be able to access your bank account to pay the mortgage, and your family could disagree about medical treatment while you're unable to speak for yourself.
Your estate plan should also evolve as your life changes. We recommend reviewing it every three to five years and updating it after major milestones like:
- Marriage or divorce
- The birth or adoption of a child
- The death of a beneficiary
- Significant changes in assets
- Moving to a new state
- Changes in tax laws
Realistically, the will you created at 25 probably won't reflect your situation at 45. Regular updates ensure your plan stays current and continues to reflect what matters most to you.
Bonus Question: What's one thing people often forget?
Beneficiary designations on retirement accounts, life insurance policies, and bank accounts.
Here's something that surprises many people: these designations override your will. That means if your ex-spouse is still listed on your 401(k)-beneficiary form, they'll receive those funds regardless of what your will says. It's a simple oversight with potentially serious consequences.
Make it a habit to review your beneficiary designations whenever you review your estate plan, especially after life changes like marriage, divorce, or the birth of a child.
Ready to Take the Next Step?
We've walked alongside families throughout our community for over 70 years, and we understand the unique considerations that come with planning for every stage of life. You’ve taken the first step by taking our quiz, now here's what comes next!
- Download our estate planning checklist to stay organized and make sure nothing gets overlooked.
- Check out our blog series, Real Life Adventures in Estate Planning, Part I and Part II to take a deeper dive into the planning process.
- When you're ready, schedule a consultation with our team. We'll work together to create a plan that evolves with you and protects what matters most.
Contributed by: Emma Pedraza, CFP®, Wealth Advisor, BCT Wealth Advisors
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