David and Laura are 42, with three young children, a successful business and a growing investment portfolio. During an estate plan review, their advisor asks who they've named to make decisions if they become incapacitated.
“James,” David says. His brother is a CPA, financially sophisticated, organized and deeply familiar with the family’s finances.
Then they’re asked about healthcare decisions. “It’s James for everything,” David interjects.
But the advisor then follows up: “Why?”
David and Laura pause and then spend some time going through the questions together.
Take 2:
Emily is Laura’s sister and a pediatrician. She knows Laura’s wishes, understands medical decisions and is the person Laura would want advocating for her in a hospital.
Then comes the question of their children. “Matt and Sarah,” they say. David’s college roommate and his wife live nearby, have children of their own and share David and Laura’s parenting philosophy.
But David and Laura don't want Matt and Sarah managing the children's inheritance. That job goes back to James.
So the plan has three different answers. James handles financial decisions and serves as trustee. Emily handles healthcare decisions. Matt and Sarah serve as guardians.