Estate Planning Basics
Estate Planning is a term commonly used, but what is it and why is it important? Basic estate planning includes the following documents: Last Will and Testament, Statutory Durable Power of Attorney, Medical Power of Attorney, HIPAA Release, and the Directive to Physicians and Family or Surrogates (Living Will). The most common document is the Will, but the other documents can be just as important. It is crucial to know that all of these documents must be signed when an individual has legal capacity- meaning that they know who they are and fully understand the documents they are signing.
Last Will and Testament: Your Last Will and Testament outlines the disposition of any property held in your name at the time of your death. It also provides for the payment of your debts, funeral wishes, expenses of administration, and the appointment of an Executor, a trusted individual of your choosing who carries out the administration of your estate.
The below documents are different from the Last Will and Testament because they can be utilized during life and can be used upon an individual’s incapacity and inability to make decisions for themselves. These documents become void after the death of the individual.
Statutory Durable Power of Attorney. Your Statutory Durable Power of Attorney nominates an individual of your choosing to serve as your attorney-in-fact. Your attorney-in-fact is given the power to act on your behalf with respect to your property and finances. When executing this document, you may select the specific types of transactions that your attorney-in-fact can engage in on your behalf. Your Statutory Durable Powers of Attorney are only effective upon your disability or incapacity, as certified by a physician.
Medical Power of Attorney. Your Medical Power of Attorney nominates an individual of your choosing to serve as your medical agent to make medical care decisions on your behalf upon your disability or incapacity. The nominated agent will not be able to make medical care decisions on your behalf until such time as you are disabled or incapacitated.
HIPAA Release. Your HIPAA Release allows your chosen individuals to gain access to your protected health information. Your medical care providers will be authorized to provide your protected health information to the individuals listed on your HIPAA Release.
Directive to Physicians and Family or Surrogates (Living Will). This document allows you to specify the type of end-of-life care that you wish to receive in two medical scenarios: a terminal condition and an irreversible condition. In each scenario, you may elect either to 1) terminate life sustaining medical treatment and transition to care to keep you as comfortable as possible, or 2) continue receiving all available life sustaining treatments available.
The information contained in this post is provided for informational purposes only, and should not be construed as offering legal advice, or creating an attorney client relationship.
