Everyone dies but what documents do you need in your lifetime?
When it comes to estate planning, people often focus on what is needed when you pass away. However, there are some key documents you don't want to go without in your lifetime, according to nwi.com in “Estate Planning: 3 important estate planning docs, and 2 maybes.” A key focus of the article is that everyone should have a durable financial power of attorney (POA), a will, a living will and a medical power of attorney.
How many times have you heard the story about someone's aging mom becoming disabled and the hospital asking if she has a POA? The problem is we're so reluctant to ask mom about a POA, that we tend to neglect this difficult conversation. Then, when we are faced with a medical emergency, it's too late.
In a medical emergency, people are actually far more likely to become disabled or incapacitated than they are to die. Therefore, you need a POA.
The living will is equally important to have in advance of an emergency. With a living will to provide instructions for when you are terminally ill, and death is expected to occur in the very near future, you will have had the opportunity to state your wishes regarding medical care in advance.
A living will should be part of your estate plan.
The related document, which is not as well known, is the “life prolonging procedure declaration,” which says, in a nutshell, “Do everything you can to keep me alive, because I'm not leaving until I absolutely have to.”
The third must-have estate planning document is a will. The will is the document where you tell your heirs exactly how you want your assets distributed. If you have children who are not yet of legal age, you name a guardian for them in your will.
One “maybe” document is a trust. Trusts are used to protect assets. There are many different types of trusts. An estate planning attorney, the same one who will help you with your POA, living will and will, can also help with trusts, if you should need one. They are not simple to set up and you'll want to get the one that best fits your needs.
Another document is called a “letter of instruction.” This is a set of directions that you leave to your family that tells them what you would like to happen. It's not legally binding, so it falls into the “maybe” document category. However, you may find it satisfying to put down on paper what you would like them to know, what you would like them to remember, etc.
If you want to dictate your funeral, memorial services and the like, work with an estate planning attorney to execute a funeral planning declaration. This document can be legally enforced.
We can advise you in creating an estate plan that fits your unique circumstances and is specific to the laws of your state of residence.
Reference: nwi.com (Nov. 25, 2018) “Estate Planning: 3 important estate planning docs, and 2 maybes”