Wills
A will, also known as a last will and testament, is simply a legal document that indicates how you would like your assets distributed after your passing. It is a way of guaranteeing that your property and other assets are handled and disbursed according to your wishes.
A will generally names an executor who will follow your wishes, as long as there are no disputes or other problems. Upon your death, the will is usually presented to a probate court that authorizes the executor to proceed.
If you die without a will, it will be up to a local court to distribute your assets according to local law. This will most likely not be according to your desires.
The bottom line is that everyone needs a will, no matter how large or small your estate, or how young or old you are. Making a will can also avoid a lot of potential family and creditor disagreements and difficulties.
Power of Attorney (POA)
A power of attorney is a legal document that allows someone else to act on your behalf.
A power of attorney can be helpful to older people and others who want to choose a trusted person to act on their behalf when they cannot. You can plan ahead by creating a power of attorney to appoint a substitute decision-maker, also called an agent.
If you don’t create a power of attorney in advance, a friend or family member might have to go to court to have a guardian appointed if you become incapacitated and are no longer able to make decisions for yourself – and that process can be lengthy, expensive, and very public.
What are some situations when I might need a financial power of attorney?
A financial POA can be used as a tool to help plan for the future, including the possibility that you’ll be unable to make important financial decisions due to dementia, traumatic brain injury, or another impairment that could affect your mental function. When used for advance planning, a POA generally is “durable,” meaning it continues to be effective even if you become incapacitated.
A financial POA can also be used for short-term purposes. For example, a servicemember being deployed overseas can create a POA so someone can pay bills, sell property, or handle other business in their absence.
Durable Power of Attorney
As the U.S. population ages, seniors and their representatives are increasingly confronted with the question of how to appoint a power of attorney (POA) to act on their behalf in the event of incompetence or incapacity.
Durable Powers of Attorney (DPOA) are a common tool in the realm of estate planning and financial and medical decision-making. The key feature of a DPOA is that it remains operative or becomes effective when the principal (the individual who granted the authority) becomes incompetent or unable to act on his or her own behalf.
As with more common forms of estate planning, such as wills and advance medical directives, a few minutes of care now can save a great deal of complication and difficulty later. Whether opting for a detailed DPOA or broad DPOA, either of these vehicles can ensure representation in the event of unforeseen circumstances, thus eliminating unnecessary stress and burden during a difficult time.
Health Care Power of Attorney
A durable power of attorney for health care is a legal document that names your health care proxy, a person who can make health care decisions for you if you are unable to communicate these yourself. Your proxy, also known as a representative, surrogate, or agent, should be familiar with your values and wishes. A proxy can be chosen in addition to or instead of a living will. Having a health care proxy helps you plan for situations that cannot be foreseen, such as a serious car accident or stroke.
To name a health care proxy, you can use an advance directive called the durable power of attorney for health care. An advance directive is a legal document that provides instructions for medical care and only goes into effect if you cannot communicate your own wishes. A proxy can be chosen in addition to or instead of a living will, which is another kind of advance directive that outlines your preferences around medical care and treatment.
Advance Directives
Advance directives are legal documents that provide instructions for medical care and only go into effect if you cannot communicate your own wishes.
The two most common advance directives for health care are the living will and the durable power of attorney for health care.
A living will is a legal document that tells doctors how you want to be treated if you cannot make your own decisions about emergency treatment. In a living will, you can say which common medical treatments or care you would want, which ones you would want to avoid, and under which conditions each of your choices applies.
A durable power of attorney for health care is a legal document that names your health care proxy, a person who can make health care decisions for you if you are unable to communicate these yourself. Your proxy, also known as a representative, surrogate, or agent, should be familiar with your values and wishes. A proxy can be chosen in addition to or instead of a living will. Having a health care proxy helps you plan for situations that cannot be foreseen, such as a serious car accident or stroke.