While you’re alive, while you have a sound mind and in good health (or not) you, your spouse and family need to do the following planning. Because if you don’t your plans and wishes may not materialize and ultimately someone else (including the courts) will make the decisions on your behalf, like it or not.
Last Will and Testament
In simple terms, the document outlines your wishes including how you willingly want to dispose of your property, who it goes to plus other instructions you may have.
There are a number of types of wills and although they are best set up through the help of legal council, simple will forms can be obtained on the internet or office supply stores. A hand written (holographic) will may also be recognized in many states.
If you die without a will (intestate), the state will make the final decisions which may not even be closed to what you wanted. Check your state’s Intestate Succession Law to see how property is really divided up. You may not like the results.
Alternatives to wills may included life insurance polices (payable to a named beneficiary), property held in Joint Tenancy with Right of Survivorship, Tenancy in Common, IRA’s or Living Trusts.
Power of Attorney
This document is for you to appoint someone (or an organization) to handle your affairs if you are unable to or unavailable. Both General and Special Power of Attorney appointments can be specified as to the purpose or use of the powers. Durable Power of Attorney gives durability provisions when the person is incompetent or incapacitated. The same person (agent) can also be named for the following appointment.
Health Care Power of Attorney
The document allows you to designate someone (the agent) who has authority to make healthcare decisions for you if you become mentally or physically unable to.
Advance Directives (Living Will)
This gives specific instructions to your “agent” and/or healthcare provider about the final wishes in handling end of life decisions. Most states adopt the Natural Death Act and have their own advanced directive forms that are available. The Federal Patient Self-Determination Act also covers the rights for end of life situations.
Some other advanced directive forms such as Five Wishes published by the Aging with Dignity organization, expand on a persons final wishes. You should check your state to verify if certain advanced directives forms are approved or recognized as legal.
Going through the process of completing these documents now (and /or trusts for more advanced situations), then keeping them up to date, can eliminate unnecessary guessing or decisions by those who care about you. If you haven’t done this, now’s a good time.
