The discomfort most people have with the thought of their own mortality makes it challenging for some people to do the estate planning that needs to occur before an emergency happens. However, according to the Gettysburg Times’ recent article “Essentials necessary for estate planning,” the best course of action is to do the planning now, when there is no urgency. Understanding some estate planning basics and having plans in place to protect loved ones from possible complications, costs and added stress in the future, is a gift you can give to those you love.
There are any number of legal documents and strategies used to accommodate the varied situations of life, including family dynamics and asset levels. An estate planning attorney licensed in your state will have the ability to create a plan and the documents that suit your personal situation. The three documents discussed in the following section are generally considered to be the most important estate planning basics for anyone to have.
Power of Attorney or POA—This document gives legal authority to another individual or entity named by the signer to perform certain acts on your behalf, when you cannot do so because of illness, injury or incapacity. There are many different types of POA, from a “full” POA with no limitations, to a “limited” POA that is created solely for a specific purpose. This document comes into action, when you are incapacitated and becomes void upon your death.
Health Care POA with Directives (Living Will)—This is a detailed health care directive that allows you to list your wishes regarding several medical procedures and life-sustaining treatments. These treatments include resuscitations, breathing assistance, feeding tubes and similar medical matters. You want to have this in place to spare your loved ones the emotional anguish of trying to decide what you would have wanted. They’ll know, because you specifically told them in this document.
Last Will and Testament—When prepared correctly, and that includes signed, witnessed, and notarized, a will is used by the “testator” (the person making the will) to provide the legal wishes regarding what should happen to their minor children (if any) and assets upon death.
What happens if you don’t have these documents? It is likely that your loved ones will need to go to court to have someone named as your executor, which is the person who is in charge of your estate. Depending upon the laws of your state, that person may be a family member, or it may end up being a family member who you haven’t spoken to in decades. It is far better to take the time to have a will created properly with an estate planning attorney, so your family is protected, and your wishes are fulfilled.
The best time to do this, is when there is no crisis. Estate plans also require regular monitoring and updating. Life circumstances change, estate and tax laws change, and new opportunities may present themselves. Speak with your estate planning attorney now and create your plan for the future.
Reference: Gettysburg Times (July 27, 2019) “Essentials necessary for estate planning”