As you create an estate plan, you may find yourself with numerous legal options. But what documents should you create as part of your estate planning process? A knowledgeable estate planning lawyer can identify solutions tailored to your needs and goals. However, many people will benefit from including three key documents in their estate plans: a will, a power of attorney, and a health care directive/living will.
Essential #1: A Will
An estate plan should include a will. Wills can serve three purposes:
- Appointing an executor to administer the estate after the person’s death
- Directing the distribution of estate assets to specific beneficiaries
- Nominating a guardian for minor children
Even if you use other estate planning tools to distribute your wealth, such as living trusts, a will can provide a backstop that allows you to direct the distribution any assets remaining in your estate to the people who want to inherit from you, rather than relying on state intestacy laws, and appoint a trusted individual to serve as executor to administer your estate.
Essential #2: Power of Attorney
A power of attorney allows you to appoint someone to handle your financial or legal affairs on your behalf. You can structure a power of attorney to meet your specific needs and legal objectives.
For example, you may create a durable power of attorney that appoints a trusted loved one or advisor to manage your finances or legal affairs even after you become incapacitated. You can also use a springing power of attorney that goes into effect only upon the occurrence of a specific condition, such as a physician or court declaring you incapacitated. You can also specify the scope of your agent’s authority under a power of attorney, empowering them to handle specific issues but not others. A power of attorney terminates upon the principal’s incapacity (unless the principal created a durable power of attorney) or death.
A power of attorney avoids the need for your family to obtain a court-ordered guardianship or conservatorship should you become incapacitated and allows you to designate someone you trust to manage your affairs.
Essential #3: Health Care Directive or Living Will
A health care directive, also called a health care power of attorney, allows you to designate someone to make medical or end-of-life care decisions for you if you cannot make or communicate those decisions. A health care directive can relieve stress or prevent disputes in your family over your medical treatment should you suffer a medical emergency that incapacitates you, and give clarity to your healthcare providers regarding who should make decisions on your behalf.
A health care directive can also include a document known as a living will. A living will informs your healthcare proxy, family members, and medical providers regarding your preferences or ethical/religious beliefs regarding medical and end-of-life care, including treatments derived from animal tissues or fetal cells, life-sustaining treatment (e.g., ventilators, bypass machines, feeding tubes), resuscitation, or organ donation after death. Your living will can also advise your family on your wishes or preferences regarding funeral and burial arrangements.
Creating a health care directive can give you peace of mind knowing that you’ve empowered someone you trust to make medical decisions for you if you cannot and that your loved ones and healthcare providers understand your preferences regarding medical and end-of-life care.
Contact an Estate Planning Lawyer Today
Depending on your financial circumstances and personal wishes, you may need to include certain documents in your estate plan. Experienced legal advice can help guide you through your estate planning options. Contact Herbert Machnik Law Firm today for an initial consultation with an estate planning attorney to learn more about the essential tools you may want to incorporate into your estate plan.
