In our last couple of posts, we have answered some of the most commonly asked questions we receive about Wills and Trusts. Today, we are going to talk about some of the other documents that are typically included in a comprehensive estate plan. These documents are sometimes called “ancillary documents” and allow you to express your wishes regarding who will make decisions for you if, for some reason, you are unable to make them yourself.
If, for example, you got into a car accident and were not able to make your own medical and financial decisions, who would make them for you. The ancillary documents give you the opportunity to name someone you trust to step into your shoes and make those decisions until you are well enough to do so on your own. So what are they and how do they work?
- Durable Power of Attorney–A Durable Power of Attorney gives a trusted person (your “attorney-in-fact”) power to manage your legal and financial affairs. Once you appoint someone to serve in this role, they can do anything you can do (open or close a bank account; apply for credit; sign contracts) in your name so the choice should not be taken lightly. You need to make sure you pick someone who is responsible and who will follow any instructions you leave.
- Health Care Surrogate–A Health Care Surrogate is a person of your choosing who will make health care decisions and receive health care information on your behalf if you are incapacitated. Your surrogate should be someone who knows you well enough to know what health care decisions you would likely make for yourself. And because nothing clarifies like clarity, it’s important that you have conversation with the person you name about your beliefs and preferences relating to health care and end-of-life care, including any religious preferences that may be relevant.
- Living Will–A Living Will declares your wishes with respect to life-prolonging treatments and procedures and is different from a Will. A will – also called a last will and testament – comes into effect when its creator dies and directs the executor on how to transfer the property in the estate. A living will, on the other hand, comes into effect when its creator is alive but incapacitated – it tells others what the creator’s preferences and medical decisions are regarding their healthcare.
- Designation of Pre-Need Guardian–When a person becomes incapacitated they can be very vulnerable to abuse and exploitation. Much of this risk can be reduced by using a Designation of Pre-Need Guardian, which is a document that allows you to recommend a person to serve as guardian of your person or property in the event you are no longer capable of caring for yourself.
- Pre-Need Designation of Minor Child–Not surprisingly, a common concern among our clients is who will care for their children if something happens to them. The first and strongest tool we use to alleviate those concerns is a Pre-Need Designation of Minor Child. The idea is that you create a declaration as to who you’d prefer to care for your children if something happens to you. The Designation is not definitive, but if the person you choose appears capable of serving as a guardian, it will be given a lot of weight by the court that ultimately determines who will care for your kids.
We hope that over the past few posts, we have answered some of the questions you have about estate planning. If you have any additional questions, contact us either by using our online form or calling us directly at 904-412-8739 to schedule a Free Consultation.
