5 Estate Planning documents that you should have.
1. Last Will and Testament (*even if a Living Trust is best for you, you will still have a "pour over" will that puts everything not already in your trust into your trust.)
Very simply, a will is a legal document that directs how your property will be distributed after you die. In your will, you designate a person you trust to manage the distribution of your assets when you pass. You can also create a trust in your will for the benefit of your spouse or children. In addition, you can name a guardian for minor children.
If you do not have a will, the state -- through a process called intestacy -- will determine how your estate is distributed. Moreover, if you have not appointed a guardian in your will, that decision may be left to a court.
2. (Statutory) Durable Power of Attorney
A statutory durable power of attorney allows you to name a person you trust (most often a family member or friend) as your agent, to manage your finances if you are no longer capable of managing them yourself. For example, if you become temporarily or permanently disabled.
Again, if you do not have this in place, the courts could take charge of this and appoint a guardian to make the decisions on your behalf.
3. Medical / Health Care Power of Attorney
A medical/health care power of attorney allows you to appoint a trusted person (most often a family member or friend) to make medical decisions for you in case you become unconscious or mentally incapable of making those decisions for yourself.
4. Living Will / Directive to Physicians
A living will -- also called a “directive to physicians” or “health care directive” -- allows you to instruct your physicians not to use artificial methods to prolong your life in the event you are diagnosed with a condition that is terminal or irreversible.
5. HIPAA Authorization
A Federal Law called "HIPAA" -- the Health Insurance Portability and Accountability Act -- sets strict rules on who can look at your medical records or receive your medical / health information. With a HIPAA authorization, you can designate a person to receive your medical information from your health care providers or health insurance company.
Very simply, a will is a legal document that directs how your property will be distributed after you die. In your will, you designate a person you trust to manage the distribution of your assets when you pass. You can also create a trust in your will for the benefit of your spouse or children. In addition, you can name a guardian for minor children.
If you do not have a will, the state -- through a process called intestacy -- will determine how your estate is distributed. Moreover, if you have not appointed a guardian in your will, that decision may be left to a court.
2. (Statutory) Durable Power of Attorney
A statutory durable power of attorney allows you to name a person you trust (most often a family member or friend) as your agent, to manage your finances if you are no longer capable of managing them yourself. For example, if you become temporarily or permanently disabled.
Again, if you do not have this in place, the courts could take charge of this and appoint a guardian to make the decisions on your behalf.
3. Medical / Health Care Power of Attorney
A medical/health care power of attorney allows you to appoint a trusted person (most often a family member or friend) to make medical decisions for you in case you become unconscious or mentally incapable of making those decisions for yourself.
4. Living Will / Directive to Physicians
A living will -- also called a “directive to physicians” or “health care directive” -- allows you to instruct your physicians not to use artificial methods to prolong your life in the event you are diagnosed with a condition that is terminal or irreversible.
5. HIPAA Authorization
A Federal Law called "HIPAA" -- the Health Insurance Portability and Accountability Act -- sets strict rules on who can look at your medical records or receive your medical / health information. With a HIPAA authorization, you can designate a person to receive your medical information from your health care providers or health insurance company.