If you think Estate Planning doesn’t apply to you because you don’t have a huge estate, perhaps you’re not aware that owning any assets at all qualifies as an estate. Estate Planning is not just for the wealthy of the world, it’s for anyone who wants to make sure their wishes are carried out if they are unable to speak for themselves.
Estate Planning Checklist
There are basic legal documents you’ll need in order to financially and physically protect your loved ones, or to leave instructions about how you want to be cared for if you are unable to communicate your wishes or should you die.
1. A will formally declares your wishes about who gets what and how much after you have died. It is only valid at the time of your death and has no significance during your life, other than the peace of mind it provides. Having a valid will is the only way to be certain your wishes are carried out when you’re gone. If you do not have a will (called ‘intestate’), state law will distribute your money to your spouse, children or parents and other relatives. It pays to have a lawyer write your will to make sure it is legal and binding. It is not advisable to store the original in a safe deposit box in case it is temporarily sealed at your death.
2. A power of attorney (POA) is a written document that allows another person to act on your behalf. That person is called the attorney-in- fact and you are called the principal. A POA is typically good in cases where you are not disabled, mentally incompetent or otherwise incapacitated. Say you’re planning extended travel and need someone to pay your bills and file your taxes, etc. You will need a durable POA in the event you become ill or incapacitated.
3. With a healthcare POA, you designate your attorney-in-fact to make medical decisions for you when you are unable to do it yourself. It’s easy to procrastinate getting this document because it forces questions like, “Who do I want to make life-and-death medical decisions for me?” or “How long do I want to stay on life support if my condition won’t improve?” Hard questions like this deserve thoughtful answers. They deserve legally binding answers.
Tags: Healthcare Power of Attorney, Power of Attorney, Wills
