Category Archives: Wills, Trusts & Advance Directives of Health Care

Expat family essentials: Estate planning checklist. Defining Moves: information, inspiration for the global expat family. Trailing spouse, supporting partner, expat partner, accompanying partner, international assignment

Expat Family Essentials: The Estate Planning Checklist

Expat family essentials: Estate planning checklist. Defining Moves: information, inspiration for the global expat family.  Trailing spouse, supporting partner, expat partner, accompanying partner, international assignmentWhen my mother came to visit us in Los Angeles, she neglected to bring her swimsuit, and was faced with the challenge of what to wear in our pool. My generous offer of a string bikini was rudely rejected with the words “Over my dead body”. I am taking her at her word, and when she moves on to a better place, we will be marking her passing with an open casket viewing and the aforementioned attire.

Just to compound your already low opinion of me, I also respond to unwanted maternal points for improvement with the words “ Just remember who’ll be choosing the nursing home”…

Let this be a lesson to those of you who are feeling complacent having written your will; if you also want a say in your care and send off, do in it writing, and make sure it can be found before the services (healthcare, financial or spiritual) have taken place. It applies to all of you, but if you are an expat, the risks are even higher..

 

There are four more documents that you need to consider preparing:

  • Guidelines for your funeral arrangements
  • Power of Attorney
  • Trust / Catalogue of assets
  • Letter of intent

Funeral arrangements. 

If, like myself, you have specific ideas about your funeral, you need to put a plan in place so that loved ones left behind can honor your wishes. For those of us with a somewhat warped sense of humor, it’s a great time to mess with everyone a little, but I appreciate that not everyone out there is as cruel as I.

The key points to cover include:

Location for service (church, crematorium etc.), preference for cremation or burial, memorial service, storage / distribution of ashes, etc.

Funeral preferences – hymns, caskets, flowers, donations, clothing (yours, but feel free to have a little fun with their dress code too…). You could even write your own eulogy and obituary, complete with an embellished (and  potentially wholly fictitious) list of accomplishments.

Funding – it’s the one we all forget, but if you are living overseas and wish to be buried in your home town, make provision for the costs of repatriating both your body and your family. Your embassy can give guidance, but the costs are entirely your own. Bear in mind that your heirs can’t easily access accounts left in your name once you have died – funeral expenses are deducted from the estate before it is divided between the beneficiaries, but flights etc are usually paid in advance, so ask your lawyer the best way to facilitate this.

Power of Attorney.

The Durable Power of Attorney / Enduring Power of Attorney is a document that designates a representative to make financial, health care, or other business decisions for you if you become unable to do so for yourself.

This can be general or limited / springing. A general durable power of attorney gives permission for whomever you name to make every decision on your behalf, if you are no longer able to advocate for yourself. A limited durable power of attorney cover specific events, like selling property, making investments (often given to financial advisors / brokers) or making health care decisions (also called an Advance Directive of Health Care).

You can choose anyone to act as your agent, but commonsense rules apply – choose someone trustworthy who has your best interests at heart, and who is physically able to make those decisions; while many decisions can be made remotely, those living overseas should consider choosing someone who is able to travel.

Trust.

I am not a lawyer, nor have any legal expertise or qualification, so I am leaving the explanation of what exactly a trust is to those in the know – click here for the best explanation I could find, or check out the additional resources at the bottom of the page. Your task is to go away and get legal advice on whether trusts are applicable to your situation.

Simply put, a trust is a legal holding zone for assets, which are controlled by individuals known as ‘trustees’, for the benefit of other named parties “beneficiaries”. You nominate multiple trustees and beneficiaries, allowing both flexibility (it is relatively straightforward to change the conditions of the trust) and smooth transition of both control of and benefit from the trust.

The vast majority of people set up trusts for financial reasons – properly crafted, your trust can help to avoid significant estate taxes. However, for expats, the ability for assets to be transferred seamlessly is often far more important; especially where the remaining spouse is on a dependent visa and no longer legally entitled to remain in the host country.

It also has the advantage not just cataloging major assets but also specifying how beneficiaries can access the funds contained in the trust, meaning that should the unthinkable happen and both parents die, they can leave instructions for funds to be released at appropriate intervals (for example, lump sums to cover college tuition and living costs, down payments on a first home etc) rather than giving total control when the children reach legal adulthood.. As someone with a 17 year old who is unable to manage his birthday money effectively, the thought of leaving him in charge of half our net worth in a year’s time sends shudders down my spine.

Letter of Intent.

Finally, it’s the easy one – your letter of intent. It’s not a legal document, instead simply some guidance to the guardians of your estate and your dependents about what your wishes, your hopes and your future plans for your dependents are.

There are two things to bear in mind:

  1. Think of your letter of intent as a set of guidelines, not rules. You are handing over the job to someone who is not you (and never will be), so let them do their best with the situation they have; if there are any ‘dealbreakers’, it’s probably a good idea to discuss them in person before you assign them the responsibility.
  2. Make sure you have the funds to back it up. There’s nothing like being left with a laundry list of expectations, and no money to do it. It’s the same lesson we teach our children; if it’s that important, you should be willing to pay for it with your own money..
  3. Don’t assume children are your only dependents; you may need to make provision for your parents, your pets or your clients.

So there we go – you are well on the way to getting your plans a little more ‘future-proofed’, whether in terms of money, care for your dependents, or what they say about you in your obituary. Just remember; your epitaph really is the one thing that is written in stone…

 

Expat essentials. Writing a will. Defining Moves - The Art of Successful relocation. Information, inspiration and resources for the global expat family, trailing spouse, accompanying partner, global services manager, relocation service provider, destinations service provider.. you get the picture.

(Often Ignored) Expat Essentials – Writing a Will.

Yes, I know. You don’t want to think about it, much less talk about it, which is why I have been getting shifty looks from most of my expat network this week when I asked them the seemingly simple question: “Do you have a will?” Want to know how many people said “Yes”?

Two. Out of about thirty people, all of whom have high net worth, children from at least one relationship, and often dual citizenship / resident status. A little worrying, no? 

I can’t claim the moral high ground – we recently unearthed our Will, dusty from 10 years in an unmarked cardboard box in a storage container in Walthamstow. Not exactly accessible in the event of our demise, and even worse, was so out of date that the paperclip holding it together was rusty and the Feisty One was not even mentioned. So on her behalf, I am doing something about it… Here goes.

Expat essentials. Writing a will. Defining Moves - The Art of Successful relocation. Information, inspiration and resources for the global expat family, trailing spouse, accompanying partner, global services manager, relocation service provider, destinations service provider.. you get the picture. I have a new dirty word: intestate. For those of you who have been living a carefree life of blissful indifference, it’s what happens when you don’t have a will. For non-expats, the implications are unpleasant: it gives the state responsibility and control over the division of your estate, decisions about who will take care of your dependents, the timeframe it all happens and (of course) access to a large chunk of your assets via taxes.

It’s a simple fix – a Will. It’s the document that tells those left behind what you want to happen to your dependents and estate.  Most of us overthink it, imagining a torturous process requiring three weeks of desperate hunting for title deeds and old bank statements. Nothing could be further from the truth – the best wills are simple statements of intent, which give executors something to work with and a few clues about where you have hidden your treasure. Combine that with a good estate planning lawyer and you will create a plan that saves everyone time, money and heartache at a time when they are most vulnerable.

Introducing first part of the Defining Moves “Ducks in a Row” program. Our aims are simple:

  • To inspire you to act. Right now. Because this is important.
  • To get you to the lawyer on time. We want to prompt to you think, discuss, list and plan, so that any legal advice you get is based on reality, not just the bits you could remember in the car on the way to the lawyer’s office. And make sure that when whoever prepares your will asks a question, you know the answer and are not paying $300 per hour for them to watch you think about it / argue with your spouse / try to remember whether or not you mailed the last life insurance premium.

So grab your pencil and paper, and let’s get started…

 

Step one: The People.

There are three groups of people you need to consider when drafting a Will;

  1. your dependents
  2. your beneficiaries
  3. your executors

 

Dependents.

These are the people who rely on you for some sort of care, support and/or protection. Traditionally, these were children still living at home, but modern families are often complicated with blended families, shared custody arrangements, adoptive children, elder relatives and even pets added to the mix. Thankfully, lawyers have seen it all before, and, even better if you have a family as nutty as mine, are sworn to secrecy…

Make of the list of those who you are responsible for, whether physically, socially, financially or legally, and the type of care you provide. Keep it simple – the rest can be figured out later – at this stage, your task is to create a comprehensive list.

Now list any special circumstances that will have to be addressed.  For many families, this may involve shared custody, child support or special needs but for expats there may also be issues of differing nationalities, citizenship and resident status that may have tax and legal implications.

For those of you with your own business, bear in mind that you may also have professional responsibility for continuity of care of clients – check your licensing organization or professional code of conduct if you are unsure.

 

Beneficiaries.

Your beneficiaries are the recipients of your estate – usually immediate descendants, siblings, friends and charities. Typically, assets are divided equally between your children, so if you want to use a different split, make this clear to your lawyer so that they can prevent your will being subject to legal contest. Note also that laws differ about division of assets when you die intestate – half siblings, step and adoptive children are often treated differently, and the portion of the estate automatically assigned to the spouse varies widely internationally.

If you have any other people or organizations who you want to leave money to, add them to your list now.

 

Executors, Financial Guardians and Legal Guardians.

It’s your group of guardian angels, so pick wisely. These are people who you trust to administer your estate and make sure your wishes are carried out, to care for your dependents and to manage the finances of the beneficiaries if they are unable to do so. The roles carry huge responsibility, so discuss whether or not your intended choices are both willing and able. They can be family members, friends or lawyers; typically, lawyers are paid (and aren’t given custody of the children…) whereas family and friends are less likely to be.

Note that guardianship differs from child custody: while custody refers to the physical care provided by a parent (who may have no legal powers), legal guardianship may involve physical and/or legal custody, and continues until the child reaches adulthood or the guardian’s death. By contrast, especially in the modern family, custody is far more flexible and changes according to the situations of the parents.

Here’s where expats need to be especially careful, because the local laws may be very different to those of your home nation and custody / guardianship arrangements and next of kin may not follow familiar rules. In the UAE, for instance, if no will is in place, Sharia law prevails, meaning that assets and custody of children potentially follow the male line – your husband / partner’s parents, brothers and sisters. How is your relationship with your mother-in-law, by the way?

 

Step Two: The Money

Your estate is the sum total of your assets, and while many of you will be rolling your eyes that I am pointing out the obvious, I can guarantee that there will be plenty of things that you will have forgotten. The temptation is to run to the filing cabinet / junk drawer and fish out the most recent bank statement, and start noting down numbers, but don’t. Your assets are constantly changing, so you only need to include categories – current and savings accounts, property, jewelry stocks, shares, businesses, investment accounts, life insurance, digital assets (websites, videos etc) – and where those assets are held. For a starter list, click here for pdf cheat sheet.

While you are making your list, make note of who your beneficiaries are, and how they are reported. Typically, life insurance goes to the spouse, but in a world where divorce rates run at about 45%, there are a huge number of exes who are still listed as primary beneficiary. Take note, and make any necessary changes…

 

Step Three: The Decisions

Now that you have the information, you can start making decisions about how to pass on your legacy, human or otherwise. Your key priorities are the welfare of your dependents, so start with those and work from there.

Guardianship of dependents.

Who do you want to care for your dependents if you are no longer around to do so? Depending on the complexity of your family and the types of dependents, there may be more than one answer to this question, so set it all out clearly, naming each dependent individually. Talk to all the parties concerned before you head to the lawyer’s office – you may be surprised to hear who your children would hate to live with, or which relative is intending to move to Outer Mongolia next month – to prevent return visits. Factors that may affect your decision are not just emotional – also consider location (how will your children feel about leaving the country, for instance), age and health of potential guardians, relationship with other friends and family, support network and financial ability to provide care.

Include financial provision for your dependents and decide who you want to manage your estate for them if they are still minors. In many cases, life insurance helps to cover the cost of raising children, but once you include the cost of college education it may not go as far as you think.

Financial, legal and professional dependent provision will require discussion with your lawyer and with those who you nominate to take over; the good news is that if planned in advance, the process is straightforward (and certainly infinitely preferable to leaving your legal advisor / executor to try to unravel the mess in your absence).

 

Step Four: The Division

This is the fun bit, providing you have money to leave. But before you start divvying up between your offspring and the local cat protection league, here are a few pointers:

  1. Remember that your debts and liabilities (taxes, funeral expenses, etc) will be deducted from your estate before the remainder is distributed. You can offset many of these by establishing a Trust, which will will talk about in the next chapter, but for the moment, just remember to include your loans, debts and other obligations when you are cataloging your estate.
  2. Ensure that you own your assets outright before you will them away. Anything jointly owned needs careful consideration to avoid passing on a headache rather than a well-intentioned gift. If you hadn’t already discussed future plans with the co-owner(s), now is the time to do so.
  3. Now is not the time to make a point. Sure, you may have favorites, but remember that in many cases you are not just leaving behind a bequest, but a lifetime of family discord and ill-feeling – not to mention legal challenges. It may seem a lovely idea to leave the bulk of your estate to your newest grandchild/ favorite nephew or next door neighbor, but the resulting fallout can often sour the best of intentions. The same rules apply for property – find out which mementos, furniture or jewelry are most loved by your friends and family, and divide accordingly, informing all of them who has been given what. That way, any discussions, disagreements or disappointments can be directed at you, rather than unwitting recipients.
  4. While we are on the subject of leaving objects to people, think carefully about whether they want them, and the responsibility you are handing over. It’s difficult to part with things, no matter how ugly, unwanted or expensive to maintain without feeling disloyal to the person who gifted it.

Now you have done the difficult bit, it’s time to put pen to paper and make a rough outline to take to the lawyer’s office. If you are an expat, you may be advised to get legal input from both your home and host nation perspective – while the laws of your home nation usually take precedence, extended residence overseas may change the rules, so be sure to explain the situation rather than making assumptions.

You need to include:

  • Your name, and identifying details (usually your address, but if you are an expat, you will need to clarify your domicile (primary place of residence) with an experienced lawyer – it has significant tax and legal implications.
  • Names of beneficiaries; the people and organizations you want to leave your assets (whether money, housing, land, stock options, digital assets etc ).
  • The name of your executor (the person responsible for making sure your wishes are met).
  • Guardians of your dependents – Legal and physical.
  • Who gets what.
  • Your legal advisor should also include a “residual clause” that states the recipient for any assets you forgot to mention, or have been accrued since you wrote your will. “I bequeath any residue to” should take care of it.
  • Signature and date, with initials and date on every page.

Congratulations if you made it to this point- you are well on your way. In the next post, we’ll be introducing the fun stuff.. Planning your funeral, Living Wills and frustrating the tax man.

Bet you can hardly wait.

 

Further Resources:

Nolo.com – Legal encylopedia – Wills

USA.gov – advice on writing both social media and regular wills.

UK Citizens Advice Bureau information on writing a will.

Australia. gov – Resources on wills and power of attorney

Expat Essentials: Safeguarding your longterm health, finances and family. Defining Moves - The Art of Successful Relocation. Information, Inspiration and Resources for the Expat Trailing Spouse / Accompanying Partner

Not Just For Expats: 3 Ways to Safeguard Your Life, Health and Family at home and abroad.

Not Just for Expats - 3 steps to safeguard your longterm health, family and finances. Defining Moves The art of successful relocation
My version of long term care

This post was sparked by an episode Mad Men –  a series about adverting executives in  New York in the 50’s and 60’s.  This particular one covered the characters’ responses to the Cuban missile crisis.

Kennedy was had just given his famous television broadcast, highlighting the potential threat to the US from the Soviets, plunging the characters into a frenzy of uncharacteristic behaviors.

In justifying their sudden need to fulfill life dreams and expectations, one of the characters made the comment:

” We might not be here tomorrow”,

to which the reply came;

“Isn’t that always true?”.

We all applaud the idea of living each day as if it were your last, but are incredibly naive about what that actually means. Most of us imagine finally parachuting, walking the Inca Trail or any other number of ambitious, death defying activities listed on our bucket list. It bears little relation to the reality of life and death.

The concept of seizing the day is reliant on good health, or at least mental consciousness, the absence of pain, and a considerable amount of forward planning. If I ask how many of you have checked your medical records, understand your health insurance rights and coverage, or have an advocate who knows your wishes in the event you are unable to make decisions, 97% of the room start twitching nervously and suddenly find their notes fascinating. Sound familiar?

For those of you who are now in a state of panic, let me reassure you. You don’t need to start visiting psychics, ordering crystal balls or trying to predict every eventuality – in fact, the simpler you keep it, the better.

To get you started, here are the three essentials to consider:

 

Health Insurance for Locals and Expats Living Overseas.

For those of you who don’t live in a country with a National Health Service (and for many of you who do), for any travel abroad or residence overseas, health insurance is essential. While many services and regular care can be contracted more cheaply without going through an insurance service provider, for the expense  of chronic, emergency and long term health coverage, you need a safety net.

Sadly, most insurers are for-profit businesses, which means that they are careful (and in some cases, downright difficult) about handing out money, and have many ways of avoiding or limiting it. Not being completely honest about your age, activities, destination and current or previous health is the fastest way to get your claim rejected and end up with a huge bill.

Pre-existing conditions, so-called ‘extreme sports’ and high risk behaviors (i.e. drug taking, using prostitutes) are common exclusions and many policies only cover your host country. They often specify services and providers that you can use, required co-pays and ineligible treatment and procedures. This means that either you personally, or your family, will be liable for any healthcare costs not met by the insurers, and these can stack up really, really quickly.

The basics to consider include:

  • What exclusions apply to your policy, and are they relevant to your situation?
  • What are the insured maximums, and what does that really mean in terms of local care?
  • Are you covered for transport home?
  • In the event of your death, will your remains be repatriated or is that the responsibility of your next of kin?
  • If you have company insurance, how are your benefits affected if you are no longer able to work or have to terminate your assignment early?
  • What happens if care is not available in your host country? Will you be sent home, or to another country, and if so, can family members accompany you?
  • If you are taken ill when overseas, are you covered for a family member to join you? Who will look after the children? Who will be your advocate? How do I make my wishes known in a way that is legally binding?

 

In the event of serious or long term illness, where do you want to be?

Common wisdom dictates that we like to be surrounded by our nearest and dearest, but for some, that qualifies as the one of Dante’s Rings of Hell.

As Greta Garbo is famously uttered “I want to be left alone”.

Most of the time the answer is “wherever I can get the best care”, but the reality is harsher and involves finance, family, support and legal residence issues.

For working expats, the decision is often taken out of their hands – once you are no longer able to work, your visa is invalid, and you are repatriated. For those permanent overseas residents the choices are wider, and many choose to stay where care is cheaper and there is less pressure on family members to be full time caregivers.

Returning ‘home’ is often not as easy as it seems, and may require significant adjustment –  repatriation is difficult under the best of circumstances, so expect a period of transition for the whole family, especially if you have been expats for a long period. Consider both mental and physical health needs for all the family – there are many excellent counselors that can deal with adaptation and coping issues, both for you, your partner and your children. x

Before you take the decision to move back, you will also need to check that you are entitled to healthcare benefits – either though the national health service or via your insurance – before you move; many insurance companies will not cover people with certain pre-existing conditions or will demand high premiums, and your expat insurance may only include your host country. Consider also what is included, whether it is just urgent care, inpatient care or ongoing long term care – and also, the standard of care and and waiting lists.

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Do you have an Advanced Directive of Health Care?

More commonly known as a Living Will, this document defines who will make decisions for your care in the event that you are unable to do, and sets guidelines for your care. We tend to assume that here only apply if we have a serious debilitating illness, however having a stated person to advocate for you is invaluable for acute and emergency medical conditions too – whether you are simply under anesthetic, unconscious, in severe pain or have temporary amnesia.

Your advocate doesn’t have to be your life partner – I have chosen my sister for four reasons: firstly, we have similar decision making processes; I would rather that my partner was free to concentrate on his own needs and those of the children; she has a great relationship with my partner and I trust her to make the best decisions for both him and I without being burdened with guilt and expectations, and finally she has a great sense of humor, and if anyone can find the laughter in any situation, it’s her.

Many doctor’s offices have ADHC template forms that you can complete, but it’s worth getting legal advice – many terms vary between states and countries. Use simple language to eliminate the chance of misunderstandings, be specific about your intentions, state what treatments you are and are not willing to receive (especially in countries with different health standards and practices), nominate a healthcare proxy (someone who you trust to make decisions for you) and ensure that they understand, agree and that their contact details are accurate and finally, get it witnessed, preferably by someone with legal standing.

 

Expat Essentials: Safeguarding your longterm health, finances and family. Defining Moves - The Art of Successful Relocation. Information, Inspiration and Resources for the Expat Trailing Spouse / Accompanying Partner
How my children see it..

Ill health happens, and never when we expect it. When it does happen, it’s a knee jerk, all hand-on-deck approach, dominated by the need to get care quickly, the demands of the medical staff and the fear of the unknown. It is always inconvenient, unexpected and bewildering, and as a former nurse I can tell you that the last thing your partner or loved ones want to be doing is second guessing your choices. They need to know what you would want, and they need it in writing. It needs to be discussed, agreed upon, written down and easy to find. You can change your mind at any point, but we all need somewhere to start. 

And as a final piece of advice, bear in mind the words of wisdom from Phyllis Diller:

“Always be nice to your children – they are the ones who will choose your rest home.”