Estate Planning--Back to the Basics
I would like to start off the year with a new year’s resolution challenge for all of my readers: no matter your level of wealth or marital status, you should have in place at least the basics of an estate plan:
· Last Will and Testament. Known simply as a Will, this document appoints a personal representative to administer your estate on death, appoints guardians of minor children, if any, and designates how assets are to be distributed on death. The Will is particularly important if you have minor children because if you don’t nominate a guardian, the Courts will choose one (and it may not be the person you would choose).
· Living Will. This is also known as a health directive, and states your wishes for end of life medical care if you are in a vegetative state or otherwise not likely to recover from your illness or injury.
· Health Care Power of Attorney. This is where you designate the names of your agents to make your medical care decisions if you can’t make them for yourself. If you don’t designate a health care agent, the Probate Court will need to appoint a guardian to make your health care decisions (known as living probate—a process repeatedly covered in previous articles in this newspaper).
· Mental Health Care Power of Attorney. Same as health care power, but dealing with mental health care options.
· Financial (Durable) Power of Attorney. This document appoints an agent to handle your financial and business affairs if you become incapacitated. The “durable” terms means that the power is effective notwithstanding incapacity. Without this power, the Probate Court will need to appoint a Conservator in the event of incapacity—also covered in previous articles).
There are many other options which would depend on size of an estate, ages of children, protections needed for heirs, etc, but everyone should start with the basics. Happy New Year to all.
