Estate Planning: Not Just For The Wealthy. What You Need to Do to Plan for the Unexpected.
Estate planning is not just for the wealthy, but a simple estate plan is something everyone should have. Of course, having properly executed documents will ensure that all of your assets are transferred seamlessly to your loved ones when you die, but a successful estate plan also provides your family or loved ones the ability to manage your affairs if you are not able, and coveys your wishes for medical treatment if you cannot due to disability or incapacity. For parents with minor children, an appointment of guardian will ensure your children are taken care by the individual(s) you choose in case of either your death or incapacity. In sum, a proper estate plan is one of the simplest ways you can have a positive impact on your family or loved ones – ensuring your wishes are followed while reducing burdens on those you care about the most.
So what should your simple estate plan include?
A simple estate plan should include certain documents. Those documents include:
1. Will and Trust(s)
2. Durable Power of Attorney
3. Living Will/Medical Directive
4. Guardianship Appointment For Minor Children/Dependents
5. HIPAA Authorization
Wills, Trusts, and Guardianship
Wills and Trusts. Most people are most familiar with wills and trusts. A will is a document that says who will get your property/assets after you die. It may also establish trusts and/or name guardians. It also permits you to choose a personal representative to handle your estate and distribute assets in accordance with your will.
Appointment of Guardian. An appointment of guardian is important for any parent who has minor children or dependents. This document is used by a parent or parents to appoint a guardian other than by will, which becomes effective on the death or determination of incapacity subject to court approval. It may also specify any desired limitations on the powers to be given to the guardian.
Ancillary Documents
Both a durable power of attorney, living will, and medical directive are important documents to have in the event that you are alive but incapacitated or disabled and unable to make your own financial or medical decisions.
Durable Power of Attorney
A durable power of attorney appoints one or more person(s) to act on your behalf regarding financial or legal matters in the event you become incapacitated and cannot do so. Without this document, if you become incapacitated or disabled, your finances could be left in disarray. In addition, family members may have to seek a court to appoint a conservator to handle your finances, which would impose additional time, money, and stress on your family.
Advance Directive and Medical Durable Power of Attorney
A medical durable power of attorney allows an individual (typically a family member) to make medical treatment decisions on your behalf when you cannot do so. An advance directive allows a you to set forth your desires as to the acceptance or rejection of medical or surgical treatment in the event that you have a terminal condition or you are in a persistent vegetative state. They are complimentary documents, although each serve a different purpose.
It’s also important to note that a CPR directive is different from either a medical durable power of attorney or an advance directive. A CPR (or commonly known as a “Do Not Resuscitate” or “DNR”) is a stop sign for paramedics and other healthcare providers, and instructs them not to administer CPR. CPR directives are only appropriate for people who do not want to be resuscitated if their natural breathing stops. A CPR directive is available through the Colorado Department of Health, and require a physician’s signature.
HIPAA Authorization for Release of Protected Health Information. A HIPAA authorization provides permission to health care providers to release your protected health care information to individuals listed. This is important if you’d like healthcare providers to discuss your medical status with certain individuals.
Proper estate planning both ensures that your desires are carried out in case of your death or incapacity, and also minimizes expense and the burden on your loved ones. Estate planning is not simply for wealthy individuals with a lot of assets and complicated tax circumstances, but really is important for everyone. We can assist you in constructing a simple estate plan, on an affordable flat fee basis. With the ability to conduct remote signings and notaries, getting your estate in order has also never been easier. Please give us a call at 303-396-0270 or email us at christina@saunders-saunders.com to set up an appointment today.
