Estate & Incapacity Planning
Everyone needs a basic, integrated estate and incapacity plan to protect themselves and their loved ones.
Advance Health Care Directive. An advance healthcare directive (AHCD) allows you to name a responsible person or persons to make medical decisions on your behalf if you are incapacitated. An AHCD also allows you to document your end of life care wishes and give your health care agent the necessary privacy (HIPAA) releases to speak with your medical providers.
Durable Financial Power of Attorney. A durable financial power of attorney (DPOA) allows you to give a trusted person the authority to access your bank accounts, pay your bills, file your tax returns, sue on your behalf and apply for government benefits if you become permanently or temporarily incapacitated.
Last Will & Testament. Unlike the powers of attorney or a trust, the will is a document that takes effect only upon your death. The will can be a stand-alone document that instructs who gets your assets upon your death. If the will is executed in tandem with a revocable trust, then the will is known as a “pour-over” will and enables your (non-trust) assets to pour into your Trust. Wills are also important because they are the primary vehicle in which to name guardians for your minor children.
Revocable Trust. A revocable trust, sometimes called a living trust, is a document that contains instructions for what you want to happen to your assets after you die. A trust also serves as an incapacity planning document because it authorizes a responsible person (a successor trustee) to step in and manage your trust assets if you become incapacitated. One of the primary benefits of a trust is that it avoids the dreaded probate administration, which is a court supervised, public, expensive and lengthy process. The trust also allows you to keep some strings attached from beyond the grave. For example, if you have minor children, you can arrange for the trust assets to be managed by a trustee until the child reaches the age of reason. A trust is more cumbersome on the front end (you have to retitle certain assets like brokerage accounts and real estate into the Trust), but it makes things much easier for your loved ones on the back end.
Retirement Accounts and Insurance Policies. An important part of an integrated estate plan is a thorough review of your retirement accounts and insurance policies to make sure you have named appropriate beneficiaries.