We all face the chance of becoming ill later in life and it is a certainty that we will all pass away. Therefore, perhaps it would be best to prepare some important information for your loved ones, according to Catching Health in “Getting your affairs in order.”
Start with the concept of incapacity, which is an important part of estate planning. Who would you want to speak on your behalf? Would that person be the same one you would want to make important financial decisions, pay bills and handle your personal affairs? Does your family know what your wishes are, or do you know what your parent’s wishes are?
Financial Power of Attorney. Someone needs to be able to pay your bills and handle financial matters. That person is named in a Financial Power of Attorney, and they become your agent. Without an agent, your family will have to go to court and get a conservatorship. This takes time and money. It also brings in court involvement into your life and adds another layer of stress and expense.
It’s important to name someone who you trust implicitly and whose financial savvy you trust. Talk with the person you have in mind first and make sure they are comfortable taking on this responsibility. There may be other family members who will not agree with your decisions, or your agent’s decisions. They’ll have to be able to stick to the course in the face of disagreements.
Medical Power of Attorney. The Medical Power of Attorney is used when end-of-life care decisions must be made. This is usually when someone is in a persistent vegetative state, has a terminal illness or is in an irreversible coma. Be cautious: sometimes people want to appoint all their children to make health care decisions. When there are disputes, the doctor ends up having to make the decision. The doctor does not want to be a mediator. One person needs to be the spokesperson for you.
Medical Power of Attorney. This is the health care agent who makes medical decisions on your behalf, when you can no longer do so.The document should be given to the named person for easy access. It should also be given to doctors and medical providers.
DNR, or Do Not Resuscitate Order. This is a document that says that if your heart has stopped working or if you stop breathing, not to bring you back to life.
Account or Password Database. This is a document or electronic vault that would allow a person of your choice access to your online life. Such as bank accounts, social media, online bill pay etc.
How Much Should You Tell Your Kids? While it’s really up to you as to how much you want to share with your kids, the more they know, the more they can help in an emergency. Some seniors bring their kids with them to the estate planning attorney’s office, but some prefer to keep everything under wraps. At the very least, the children need to know where the important documents are, and have contact information for the estate planning attorney, the accountant and the financial advisor. Many people create a binder with all their important documents, so there are no delays caused in healthcare decisions.
An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and will be helpful to your loved ones.
Reference: Catching Health (May 28, 2019) “Getting your affairs in order.”
