Assuming that estate planning is all about what happens after you die is a common mistake. Indeed, a Will and likely a Trust will be part of your estate plan, but as relevant are other essential documents.
This article introduces you to some of the smaller, but essential estate planning documents. Further, there are links to more detailed information. These documents address issues during your life, not after your death.
Life is unpredictable. Life could throw you a curve rendering you incapacitated for hours, days, weeks or even years. Should a car accident or health issue leave you unable to manage your assets, who steps in? Each state recognizes your right to grant an Agent the power to control your financial affairs. The document used to give these powers is the Durable General Power of Attorney.
Durable refers to the powers being granted carrying on even if you are incapacitated.
General refers to the document being a broad grant of powers. For example, most include the ability to manage funds, sell assets, hire professionals such as lawyers and accountants and gather your private information.
If you were incapacitated this document allows you to select the person who manages your affairs. Without the document, your family is forced to Petition the court to have you declared incapacitated. A judge then appoints a guardian. This person might not be a family member but could as easily be someone you have ever met. By working with an estate planning lawyer to create a Durable General Power of Attorney, you get to select your Agent, and you save the expense of a Guardianship hearing.
Sharing a copy of your Financial Power of Attorney poses risks. The document is valid the moment you sign it, and photocopies or electronic scans are valid. So, if you give your Agent a copy you can never be sure you have received all copies back again should you have a falling out. Our clients usually leave the original in our Will safes along with instructions to provide the Agent with a copy should the client ever become incapacitated. This way the documents are ready to use, but not available unless needed.
For more detailed information, follow this link to further data: Power of Attorney Lawyer.
A Medical Power of Attorney appoints the person who has the specific power to make medical decisions for you should you become incapacitated. This document will likely include a description of your wishes regarding removing all medical care (the Living Will).
When selecting your Surrogate, make sure you spend the time to share your medical philosophy. Your Surrogate is supposed to make the same decision you would make given the situation. If you don’t share your thoughts, there is no way the Surrogate can act.
Because your Surrogate might need to use your Medical Power of Attorney quickly, it is wise to provide him with an electronic copy. He can keep the copy on his phone or in an email where he can access it at any time and from any location. Unlike the Durable General Power of Attorney, having a copy of the Medical Power of Attorney does not grant the right to empty bank accounts, so there is less danger of any abuse.
For more detailed information, follow this link to further data: Living Will Lawyer.
Your Will might name a guardian for your children should you die, but who takes them home from the hospital should you be alive but unconscious? Further, if you are unconscious from a car accident, which approves medical care for your minor children? These situations are where a Temporary Guardianship document works best.
Providing a copy of this to the appointed Guardian is essential. The named guardian acts only if you are incapacitated. This limits any danger of abuse. Give the Guardian a scanned copy, By having a copy your Guardian can arrive on short notice and take custody of your children in what is likely a terrifying situation.
In conclusion, estate planning documents are not only Wills and Trusts. Make sure you cover all the essential materials with your Estate Planning Lawyer.
Peter Klenk is the founding member of Klenk Law, a seven attorney boutique estate planning law firm. We serve clients in Pennsylvania, New Jersey, New York, Minnesota and Florida. Peter Klenk received his Masters in Taxation LL.M. from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
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Peter Klenk & Associates is my go-to firm for estate planning and advice in probate and estate administration. Peter and his attorneys are top-notch and exceptionally responsive. Peter has the knack of being able to explain extremely complex tax and estate planning issues in a manner that clients are easily able to understand and comprehend allowing them to confidently make important decisions.
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I contacted Peter through his website using the free consultation link for a question regarding a will. While I was expecting only a few minutes, it was a lengthy conversation. He made sure he understood the situation by asking many questions before offering advice. He then went through my options and results of each one. He left it up to me to decide if I wanted to proceed and did not push me toward one or another. His website has very useful information which I definitely researched before I called him. While I decided not to proceed at this time, I feel I had enough information to make that decision. I would not hesitate to hire him should I need to in the future.