Over the next few posts, we’re going to take a deeper dive into the topic of estate planning.  Let’s start with an estate planning resolution: Getting certain key documents in order this year.  These four are especially important:

Power of Attorney

Your PoA allows you to appoint someone to act on your behalf to make legal decisions about your property and finances.  That person, usually referred to as an “agent”, could be a trusted friend, a family member, or an experienced, reputable professional.

Power of attorney is crucial should you ever become ill or disabled to the point where you can no longer make important decisions yourself. Keep in mind, however, that granting someone power of attorney is a huge decision in and of itself. Give careful thought before making your choice. Whomever you select should be trustworthy, reliable, and mature enough to handle the responsibility.

Advance Healthcare Directive

A second document is your Advance Healthcare Directive. This catch-all term refers to health care directives, living wills, medical powers of attorney, and other personalized directives. All of these documents allow you to legally express your preference for continued health care should you become terminally ill. Just as important as having a will is keeping it updated. Just as your life is always changing, your will must change with it whenever appropriate.

Letter of Instructions

This is a document giving your survivors information about important financial and personal matters to attend to after your passing. You don’t need an attorney to prepare it. Although it doesn’t carry the legal weight of a will, and is in no way a substitute, your Letter of Instructions will clarify any special requests you want carried out after death.

Your Will

Finally, of course, we have your will. A will states how you want your belongings divvied up amongst your loved ones after you pass away. Otherwise, the government will determine how to distribute your property, which may even end up belonging to the state if you don’t have an appropriate will stating otherwise. 

Having each of these documents prepared ahead of time can relieve your family of needless worry and expense. Let me know if I can ever help you with any of them!