4 Essential Estate Planning Documents That Everyone Needs
Assets or no assets - you need these documents now.
There are just some documents that help no matter the size of your estate. They help no matter your age or stage in life. Young people - yes. Professionals - yes. Grandparents - definitely yes.
The first three documents require no assets and have everything to do with disability or incapacity. The fourth helps to ensure your assets are distributed to whom you choose and your choice of a personal representative.
Your Four Essential Documents
1) Patient Advocate Designation
The Patient Advocate Designation combines three documents into one in the State of Michigan. You may find these still necessary but separately outside of Michigan.
A Durable Power of Attorney (healthcare)
With this document, you grant a chosen agent the power to make all medical and mental health care decisions for you. In the event of disability or incapacity, you give your agent the power to act on your behalf.
Living Will
In your living will, you have the opportunity to document what procedures or medications you do or do not want to prolong your life. No agent is named in these instructions. You also document the withholding or withdrawal of life-sustaining medical treatment.
Health Care Proxy
This document has everything to do with your wishes revolving around withholding or removal of life support, including what machines are used to keep you alive in the event of incapacity or terminal illness.
2) HIPAA form
Healthcare providers require this form before anyone is granted access to your medical files. Your chosen agent has the power to review, receive and have access to all medical records and protected health information. Having additional medical information can assist your agent in making important medical decisions for you.
3) Durable Power of Attorney for Legal & Financial
You choose an agent to manage and handle your financial affairs in the event of disability or incapacitation. These powers can be limited to a specific action, such as signing a legal document or granting broad powers.
4) A Will
A will helps to name your personal representative and who gets what revolving around your assets. Your personal representative ensures your wishes in your will are carried out as you’ve written them. In your will, you can make specific bequests of jewelry, vehicles, pets, and other special mementos. There is also a catch-all, “residuary clause,” that disposes of any parts of your estate not explicitly named in the rest of your will.
Here’s what you gain by putting these documents in place:
Avoid a court procedure to gain guardianship.
Save time going through the court process
Ease the burden of family members
As you can see, establishing an estate plan involves more than counting what you own. Factors such as incapacity due to an illness or a disability caused by an accident can burden the family more than necessary. These types of events happen every day to families, the quickest way to resolve is to get your essential document completed asap.
Ready to get your estate plan started or need more information, schedule a discovery call with me? Where you and I dive a little deeper into your situation to discover the plan that fits you.
~ Tenicia Moulden
Moulden Law Blog is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site, you understand that there is no attorney-client relationship between you and Moulden Law. Moulden Law should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
