In honor of National Healthcare Decisions Day on April 16th, we’d like to address how a basic estate plan can help influence decisions made about your healthcare when you are unable to speak for yourself. While you might already know that an estate plan can help ensure the proper handling of your assets, you may be surprised to learn that a comprehensive estate plan can also ensure that your healthcare wishes will be honored as well! And isn’t your health your most valuable asset?
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According to the leading Kendal Law Group PC in Bloomfield Hills, a comprehensive estate plan includes at least four documents: a will, a financial power of attorney, a healthcare power of attorney, and a living will (also known as an advanced directive).
A Will. A will is a legal document that outlines how and to whom you want your assets distributed at your death. A will can also nominate a legal guardian for your minor children.
It’s important to note that a will only pertains to probate assets. Probate assets are any assets you own that do not transfer automatically at your death. Other assets, called non-probate assets, do transfer automatically at death (regardless of what your will says), and include life insurance policies or retirement accounts with named beneficiaries, bank accounts that are transferable upon death, and real property titled jointly with right of survivorship. For this reason, it’s a good idea to consult lawyers for preparing wills, keep your will up-to-date, and periodically review your beneficiary designations and legal titling of your non-probate assets to ensure that they align with your wishes.
Financial Power of Attorney. Naming someone with the help of lawyers from The Law Office of Polly A. Tatum as your financial power of attorney allows that person to act as your agent, for your benefit, in the context of your financial affairs. Someone acting as your financial power of attorney can do things like pay your bills, file your taxes, and access your bank accounts. It’s smart to name someone you trust who will handle your financial decisions in a way with which you’re comfortable.
Healthcare Power of Attorney. Naming a healthcare power of attorney puts that person in charge of your healthcare decisions if you become unable to make decisions for yourself. Naming someone you trust as your agent– someone who understands your outlook on healthcare and your definition of a meaningful life – is the way to go.
Living Will. A living will, also known as an advanced healthcare directive, outlines your wishes for end-of-life care. It provides instructions to other healthcare providers about what to do in certain situations. For example, if you stop breathing or end up in a persistent vegetative state.
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The documents mentioned above are created with the help of a licensed attorney from a reliable estate planning and criminal justice law firm, and it’s never too early to start the process! No matter how young or old, you unfortunately, are not immune to a sudden accident or medical crisis which can leave you too ill to make your own healthcare decisions. Making your end-of-life wishes clear in official documents and in conversations with your loved ones with the help of a reputed law firm like Craig Associates PC can eliminate confusion and disagreements during what could already be a stressful and upsetting time for the people closest to you.
To learn more about advance care planning, view the WWHF Events Calendar for a FREE community health presentation on the topic near you, or visit https://www.nhdd.org/.
Thank you to attorney, Christina Hamati for her writing contributions to this blog.
Christina is an attorney at a Fortune 100 financial services firm. She has experience consulting, presenting, training, and writing on issues related to financial planning, insurance, planning for business owners, trusts and estates, retirement planning, charitable giving, and tax planning. She holds various insurance and financial consulting designations, as well as a FINRA Series 7 license. Outside of work, she is extremely committed to community involvement and giving back. She is a strong advocate for children, women, and healthcare causes, and a volunteer attorney for Wills for Heroes, where she drafts estate planning documents for veterans and first responders free of charge several Saturdays per year.