Many people believe that drawing up a will is the extent of estate planning. However, comprehensive estate planning is more than just detailing your final wishes. It also covers your wishes concerning healthcare and finances should you become incapacitated and are unable to make those decisions for yourself. There are several documents you could choose to help you customize a plan to suit your needs, but here are five that you should seriously consider.
Last Will and Testament – Your will allows you to:
- name an executor
- designate who will receive your estate
- designate who will care for any minor children
- create a trust that will protect assets intended for minor children or those with special needs
- list any special gifts or instructions
Creating a will gives you control over how your estate is distributed. Without it, you die intestate, which means the State of Texas dictates where your estate goes when you die. A will may also help prevent conflict between heirs and allow the probate process to run more smoothly.
Statutory Durable Power of Attorney – This document allows you to appoint someone, known as your agent, to manage your financial affairs if you are unable to. It gives them the authority to:
- access your bank account
- pay your bills
- sign legal documents
- file taxes
- and many other financial transactions
The documents become effective immediately after you sign it before a notary and stays in effect until you die, unless it is drafted as a “Springing Power of Attorney,” which only activates when you become incapacitated. Having a Statutory Power of Attorney does not take away your right to handle your own financial affairs, but it ensures some continuity if and when you are unable to do so. Without it, your family would have to go through an expensive guardianship process in order to manage your finances.
Medical Power of Attorney – This document designates someone to make healthcare decisions on your behalf. That person, or your agent, has the authority to:
- access your health records
- consent to or refuse treatments, including surgeries
- admit you to healthcare facilities
- make the decision to remove life support
It is activated only when a physician certifies you are unable to make medical decisions for yourself. Without it, your family will have to go through a costly guardianship process.
Health Insurance Portability and Accountability Act (HIPAA) – This document allows healthcare providers to share protected healthcare information with specific people. It allows your family to:
- communicate with the doctor
- access your records
- help manage your case
Without this document, doctors might not be able to immediately disclose information regarding your condition to even your closest family member, and they might have to wait for hours for information. It makes them part of the decision-making process, especially in emergency situations.
A comprehensive estate plan provides peace of mind for you, but for your family, as well. An estate planning attorney can help you make sure your documents are tailored to your needs and aligned with all Texas laws, making sure you understand the implications of each document. Working with an estate attorney can also make sure your plans are able to withstand any challenges heirs might bring against them. If you have any questions, experienced estate attorney Nancy Perry Eaton will be happy to help you. Call and make an appointment for a free consultation to see how easy it can be to provide clarity and peace of mind for your family.