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Why You Need a “Plan B” In Your Estate Plan

07.18.25 written by

Let’s talk about two things no one likes to think about: dying and getting sick. If you want to avoid turning your golden years into a mess for you and your loved ones, you need a good Plan A and Plan B. Think of it like insurance for your dignity, sanity and bank account.

Plan A: What Happens When You Die
If you don’t have a plan for what happens after you die, the state has one for you. Here’s what you need to know:

Estate Planning is more than just drafting a Will.
A good attorney will do more than draft a Will. They listen to your goals and help you weigh freedom and simplicity versus control and protection. They will review how each of your assets are titled to determine how they pass when you’re gone. The four main ways assets pass after your death are:

  1. Probate: A Will says who gets what when you die. But surprise! It only controls assets that are titled in your individual name, and those assets must go through probate, which means a court must be involved. This probate process is public, typically slow, and a hassle for heirs.
  2. Joint with Rights of Survivorship: When two people own something together during their lifetime with rights of survivorship, and one dies, the other automatically inherits it. This is very convenient for most spouses but is not good planning for children.
  3. Beneficiary Designations: Sometimes called Payable on Death (POD or TOD) if you name beneficiaries, that asset goes directly to them avoiding probate. This is a simple way to pass assets at death, but do not put anyone in charge and cannot incorporate successor beneficiaries or other more sophisticated plans that a Will or Trust can utilize.
  4. Trusts: There are many types of Trusts that can help you achieve your goals. Assets administered by a Trust avoid probate, maintain privacy, and allow you to control how and when your assets are distributed. Do you want a beneficiary to control their inheritance at age 30 instead of 18? A Trust can do that. Do you want to protect assets for future long term care costs? A Trust may help. Do you want a disabled heir to inherit without disrupting benefits? A Trust is the answer.

Bottom line: A well-crafted Plan A makes sure your money goes where you want, and in the way you want, not where and how the state decides.

Plan B: What Happens When You Get Sick
Now, let’s pivot to the less glamorous (but equally critical) side of planning: what happens if you don’t die, but instead get really sick or need long-term care?

  1. Who Is In Charge? You need two Powers of Attorneys to appoint people you trust in charge and avoid guardianship.
  • Health Care Power of Attorney: You need someone who can make medical decisions if you can’t. Choose someone who knows your values—and who won’t crumble under pressure.
  • Financial Power of Attorney: This person handles your money, pays your bills, and keeps your finances in order when you can’t. This role requires the utmost trust in your named agent.

Pro tip: Don’t wait until you’re already sick. These documents only work if you sign them while you’re legally competent.

  1. Where Will You Receive Care?
    At home? In assisted living? A nursing home? It’s not just a personal preference; it’s a planning decision. Each option comes with different costs and levels of care. If you don’t make this call, someone else will. Planning in advance with a professional and talking to your family helps when the time for transition comes.

  2. How Will You Pay For It?
    Medicare doesn’t cover long-term care. If you don’t have long-term care insurance, your options to pay for care are:
  • Out-of-Pocket: The “write checks until you’re broke” plan – not ideal.
  • Medicaid Planning: Yes, you can legally structure your assets to qualify, but it takes time and expertise. It’s not a DIY project. Consult a Certified Elder Law Attorney before making any significant financial moves.

A solid Plan B protects your family from making agonizing decisions and preserves your finances from being exhausted by care costs.

The Wrap-Up
Planning isn’t about doom and gloom—it’s about control. With a smart Plan A and B, you decide who gets your assets, who speaks for you, and how you’re cared for. A Certified Elder Law Attorney can help you set up a personalized plan so you’re prepared for anything the future may bring.

Written by:
Kyla A. Williger, Certified Elder Law Attorney
kwilliger@kwgd.com
330-686-7777

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