The best way to be ready for major life and death decisions is to properly plan ahead. When it comes to your estate, this means an all-encompassing look at the decisions to be made, who makes them, and who gets what.
There are generally four major documents you need to prepare so that your estate is in order.
Financial Power of Attorney
Whoever you name as your financial power of attorney makes all of your financial decisions. By specifically picking someone to make those decisions, you help eliminate controversy and stress. You also avoid the costly and lengthy legal process of the court making your decisions.
Will
The central part of your estate plan that simply states who will receive various parts of your estate, including savings, homes, and other assets. By specifically laying out each asset and what person or charity it will be distributed to, you make your wishes clear. Although you won't avoid probate, a will may help reduce much of the court and the government involvement in your estate.
Living Will
This is one of the most crucial documents in terms of medical decisions. Simply stated, a living will spells out what specific medical treatments you do or do not want in the case of a medical emergency that leaves you unable to make medical decisions. Major medical choices, such as whether or not to resuscitate, or whether or not to be put on artificial respiration can be decided within the living will.
Medical Power of Attorney
The person you appoint someone make medical decisions if you cannot. If you don't have a medical power of attorney (also known as a health care proxy), the decision automatically goes to your spouse. If you are unmarried, then it goes to adult children or parents. By specifically designating someone to make the decisions, you make it clear who you want in charge, and what you want done if the worst happens. While these situations are never easy, by making it obvious who you want to make decisions and what decisions you want them to make, your wishes are clear and it eliminates the opportunity for someone else to claim otherwise.
There are many details to each document, and many details regarding your overall estate, including taxes. As your financial advisors, we are here to help you plan for your future. By being prepared and educated, you can make sure that your wishes are known. Most importantly, you can ensure that the legacy that lives on in your name is the one that you choose.
— Registered Representatives offer securities through Securities America, Inc. Member FINRA / SIPC.
— Article written by Securities America, Inc. for distribution by Michael Mullis.
— Investment Advisor Representatives offer financial advice through Securities America Advisors, Inc.