When making an estate plan, there are many different documents to consider. It goes far beyond just writing a will to pass your assets on to your children. A comprehensive plan is important so that things go smoothly for your family, even before your death should you become incapacitated.
As such, a comprehensive plan includes a power of attorney to manage your finances and a health care directive, sometimes called a medical power of attorney, to manage your medical care.
These two documents are only valid during your lifetime and can be used if you experience a cognitive incapacity or even if you do not.
Powers of attorney, both for finances and health care, give someone else (someone you trust) the legal ability to do something on your behalf. For instance, you have the right to transfer real estate or access your financial accounts, but a financial power of attorney can allow your trusted agent to do this for you. Similarly, you have the right to make your own health care decisions, but a medical power of attorney lets your agent act on your behalf.
By executing these documents, you don’t have to worry about giving up those rights immediately or prematurely. The powers of attorney don’t have to kick in unless or until there is a triggering event. Often, this means that you have become incapacitated as the result of a stroke, or a diagnosis of dementia or Alzheimer’s; perhaps you are hospitalized and unable to communicate. In those situations, your agent can step in and make decisions that are in your best interest.
No one thinks – or wants to think – that they will ever need these important legal documents, but if you don’t have them when you need them, your family will have to commence more expensive guardianship and/or conservatorship actions that will require court involvement.
It’s like the old adage: An ounce of prevention is worth a pound of cure. Contact our office to discuss your estate plan today at 651-738-3433.