Financial Futures

One of the final elements to consider when caring for family or friends is to make sure that the proper estate planning documents have been prepared. These documents allow us to make certain choices so that our affairs can be managed or distributed without interruption. At the very least, the list of documents should include a will, a power of attorney and a living will.

Will
Nearly everyone knows what a will is, but it is surprising how many people do not have one. Though people give many reasons for not having a will -- the most common of which seems to be procrastination -- it is imperative that we understand the problems and disruptions that could occur if we do not have a valid will that is written by a qualified and experienced attorney and properly witnessed.

Did you know that your state provides a will for you in the event you die without one, which is called intestate? The court will appoint someone to administer your estate and your state statute provides who will receive your property. The distributions required by state law will undoubtedly be different than your own designs. Charities and non-relatives will certainly be excluded.

You do not have to be rich to need a will. In your will, you can make provisions for bequests of specific property that you want an individual to receive. You can make provisions for the distribution of the remainder of your estate and whether you want it distributed outright or in trust. For larger estates, the combination of wills and trusts can be used to reduce unnecessary estate taxes. You can appoint specific individuals as guardians, executors and trustees. Once prepared, the will can be changed as your needs or desires change. As difficult as planning for death is, most assuredly, dying without a will can cause great difficulty for your loved ones who survive you.

Power of Attorney
Management of one's assets in the event of becoming incapacitated is also a great concern to many. The simplest way to protect your personal assets and provide for continued management by a trusted individual is to prepare a power of attorney. The power of attorney is a written document that allows the designated individual, called an attorney-in-fact, to oversee and handle the affairs of the principal. These documents can be designed so that they are effective immediately upon signing, or they can spring into effect if you become incapacitated. Their duration can be specified, or they can remain active until revoked, and the power given to the attorney-in-fact may be very broad or very limited depending on the circumstances. The power of attorney precludes the necessity of a court hearing in which a judge would declare the principal incapacitated and appoint a guardian or conservator for him or her, which can be expensive.

Living Will
Finally, medical advances are allowing patients to live longer through the use of extraordinary measures. However, horrifying life support stories are abundant, and for those who want to determine themselves whether or not they are kept alive artificially, a living will should be prepared. A living will is a document that tells the doctor whether or not the individual wishes to receive a variety of life support systems such as artificial respiration, kidney dialysis and cardiac resuscitation in the event that they are in the process of dying, suffer from a terminal condition, or are in a vegetative state. The living will statute in each state may vary and some states have not yet adopted such a statute. But I highly recommend that everyone prepare a living will to help guide doctors and family to make the appropriate decision with regard to continued life support.

Audrey faces a tough challenge, and planning at this point is very difficult. She should be sure that her husband and her mother plan from this point forward by preparing these documents.

Expert Advice for Audrey
Protecting Assets
Long Term Care Insurance
Medicare and Medicaid
Estate Planning Documents
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