Estate planning establishes a framework to manage your assets upon death, disability or incapacity. It involves creating documents that outline and authorize others to implement your wishes when you cannot. Even though estate planning may not be something you wish to think about, it is critical that you properly prepare prior to the actual need.
Here are several(but not all) important documents necessary to cover the various aspects of an estate plan concerning incapacity or disability prior to death.
- A Durable Power of Attorney for Financial Matters & Property Management gives another person legal authority to manage your assets without court interference. A “regular” power of attorney ends at incapacity, while a “durable” power of attorney remains valid or enforceable through incapacity but terminates upon death.
- A Healthcare Surrogate or Medical Durable Power of Attorney gives another person legal authority to make health care decisions (including life and death decisions) if you are unable to make them for yourself.
- A Living Will (also known as an Advance Directive to Physicians) sets out your predetermined wishes regarding end-of-life care or issues should you become terminally ill, permanently unconscious or have some other irreversible condition. Ultimately, it takes the decision to withhold life, water, food and/or extraordinary measures out of the hands of your medical providers and loved ones so that they are not burdened by it, and you can be assured your wishes are followed.
- HIPPA Authorizationsgive your doctors, medical facilities and other providers permission to discuss your medical circumstances with others, including family members and other loved ones as well as release your private medical information to them.
It is also important that the designated persons or authorized agents know where to locate financial records, medical records and passwords when and if needed. Accordingly, you should make a list of accounts and passwords (including your computer’s password) and print the list and put it in a safe place. A hard copy is important in case your computer crashes or is lost or stolen. If you use an online back-up system, make sure to include it. You should also include online accounts and social media. Finally, you should update your documents as your life and circumstances change.
Drafting an estate plan for incapacity or disability is essential for every responsible adult. If you do not have a plan, you need to prepare one sooner than later. Creating such a plan will provide you the opportunity to consider what is important to you and how you can better protect both yourself as well as those closest to you.