Tawnya Nyman
Four documents everyone needs
Many people have trouble considering, let alone discussing, end-of-life topics with their close friends and/or family members. Part of this may be due to concerns about privacy, the emotional aspects of the topic, or maybe simply fear that a discussion may be viewed as morbid or depressing. Nevertheless, this topic should not be avoided because lack of preparation will make a stressful situation much more difficult than it already is. Your preparedness will provide a roadmap for your loved ones in difficult circumstances.
- Written Will – The most efficient way for the administrator to distribute your remaining assets and provide for the care of any minor children is by following the directions in your written will. Wills can be self-prepared, but without a witness they may be considered invalid. It is best to have your will drawn up by an attorney who can guide you through items that you may have overlooked or that may vary from state to state.
- Durable Power of Attorney – This is the document that provides another individual with the ability to make financial decisions on your behalf, even if you are incapacitated. (A regular power of attorney will not work in that situation). A durable power of attorney is effective the moment that you sign it, but can be revocable. The individual or institution acting on your behalf can then access your bank accounts, safe deposit box, and other assets, so you will want to make this decision very carefully.
- Medical Power of Attorney – The medical power of attorney is separate from the durable power of attorney and grants specific powers related to healthcare. Often the individual chosen to make the medical decisions is a close family member and that may differ from the person you want to make financial decisions on your behalf. This medical power of attorney needs to include the required “Authorization to Release Protected Healthcare Information” wording, allowing the doctor to speak to them about your condition.
- Living Will – This document is typically drafted in conjunction with the Medical Power of Attorney and often times may actually be written as part of that document. It outlines the types of medical procedures that the individual wants to accept or refuse should the individual become diagnosed with a terminal illness, require prolonged artificial life sustaining procedures, or is deemed to be in a vegetative state. These documents are very specific about these medical procedures, which may save your family from making heart-breaking decisions that could cause divisions when your wishes are unknown.
A properly drafted set of estate planning documents is a critical investment that should not be neglected. These documents should be accessible and reviewed regularly to ensure that they are still appropriate as changes in family members and situations occur. Ideally you should keep an updated copy on file with your family attorney and keep the originals in a safe and secure place. And finally, be sure to communicate the location of these documents (and your safe deposit box key!) to the agents that you have selected to manage your estate.