Estate Planning Both Your Will and Power of Attorney Documents
Gone are the days when Americans considered estate planning a preserve for the wealthy. On the contrary, it is a savvy decision that ensures the well-being of your assets and loved ones when you inevitably pass on. However, most people forget that estate planning can also provide for your well-being when you’re alive but incapacitated, i.e., no longer able to make decisions on your own.
In today’s comprehensive blog, you will learn why planning for a future where you’re alive but unable to make decisions independently is even more important than planning for a future where you’ll no longer be alive to experience the impact of your estate planning. Keep reading below.
The Crucial Estate Planning Documents: Power of Attorney and Last Will and Testament
While estate planning can be a complex process involving a lot of paperwork, two crucial documents form the basis of a well-executed estate plan. They are:
Power of Attorney
In simple terms, a power of attorney is a document that lists who should be your decision-maker, legally known as an agent, when you’re unable to make decisions on your own while still alive. Take, for instance, you slip into a coma due to a road accident. The power of attorney names the person in charge of your decisions during this period.
Best practice dictates that you draft two different power of attorney documents:
- Financial power of attorney document: Lists the agent with the legal authority to make financial decisions on your behalf while you are unable to do so
- Healthcare power of attorney document: This document designates the agent responsible for making decisions pertaining to your health on your behalf
A probate attorney can help you understand the differences between these two crucial documents and what goes into drafting one.
Last Will and Testament
The will is fundamental to what we’ve discussed above. This crucial document details what should happen to your assets when you ultimately pass on. It also designates the person with the authority to execute your wishes when you’re deceased, otherwise known as the Personal Representative or the Executor.
What Estate Planning Document Do You Need?
So, which documents should go into your estate plan?
“People often wonder whether they need to create both a power of attorney and last will documents. The simple answer is, yes. Both these documents are integral to your estate planning,” says real estate and trusts attorney Ana M. Veliz.
You see, your will has no significant effect until when you’re deceased. And in the same way, your power of attorney has no effect once you are deceased. So then, drafting both these crucial documents is essential as it maps the path for a future where you will either be unable to make decisions by yourself or unable to make these decisions or be impacted by them.
Conclusion
Most Americans need to draft both a power of attorney and a will to ensure their own well-being as well as that of their assets. Seek counsel from an experienced and qualified probate attorney on your options regarding estate planning. Your lawyer will help you draw a roadmap toward compiling your total assets and determining what should go to whom when the inevitable happens. At the same time, your attorney will help you set up an agent and executor for your power of attorney and will documents, respectively.
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