Are your estate planning documents in order?
There are several core estate planning and financial documents we should all have and keep up to date: a Durable Financial Power of Attorney, a Health Care Proxy, and a Living Will. A review is recommended at least every five years, or should your circumstances or finances change, or if there is a change in applicable laws.
Durable Financial Power of Attorney
This allows your agent - the individual you designate - to handle your financial or business matters for you, such as paying your bills or doing your banking, even if you become incapacitated. It may also allow gifts to be made in certain situations and if specifically provided. It must be signed before two witnesses and must also be Notarized. The Notary can be one of the witnesses. It ends at your death.
Health Care Proxy
Also known as a medical power of attorney, this allows your agent to make decisions about your medical care, including medication, surgery, treatment, and end-of-life care.
Living Will
A living will is a document that provides specific instructions about health care decisions - what medications or treatments and procedures you want or don’t want, for example. It is often combined with a Health Care Proxy, but in all cases, it takes legal precedence over a Health Care Proxy and the two should be carefully coordinated. Your health care providers and agent should be given copies.
You should also keep a written record in a secure (but accessible) location that details all your accounts including any pensions, names and contact information for all your advisors, your insurance policies, property information, passwords (yes!), and other pertinent personal information that your family would need to access should something happen to you.
Please note: Our Lessons from Lee series is for informational purposes only. The League cannot offer legal, financial, or tax advice. Please consult with your attorney, accountant, and/or tax advisor for advice concerning your particular circumstances.