WILL BASED ESTATE PLANNING

Will Based Estate Planning usually includes a Will, a Durable Financial Power of Attorney, an Advance Medical Directive and Durable Medical Power of Attorney, and a Medical Release. It may also include deeds, and recommendations on retitling assets or changing beneficiary designations. OK, what do these mean?

Will

You know what a Will is. It directs who inherits from you (your beneficiaries), who manages your estate (your Personal Representative or Executor), and outlines how the Personal Representative or Executor must administer your estate. A Will does all of these things. And more.

• A Will can provide that any inheritance left to a younger beneficiary be invested, managed and spent for the younger beneficiary, but without the younger beneficiary having control until the beneficiary reaches a mature age.
• A Will can hold a spouse’s inheritance in trust, to allow the spouse to qualify for government benefits (see the tabs titled Medicaid, Aid and Attendance, and PACE), with the assets in the trust used to provide an improved quality of life for the spouse.
• A Will can direct gifts to dear friends, to your church, and to your favorite charities.

A Will is only effective when you pass away.

Durable Financial Power of Attorney

First, let’s discuss what a Power of Attorney is. A Power of Attorney is a document that allows one person, called a Principal, to allow another person, called an Agent, to take action on behalf of the Principal. As an example, an Agent may be able to sign checks for the Principal, deal with investments for the Principal, and make other decisions on behalf of the Principal. A Power of Attorney may be effective when signed, or may be effective only when the Principal is determined to be incapacitated. There are many ways that the power given to the Agent can be tailored. At Susan I. Jean & Associates, LLC, our attorneys will work with you to tailor the document to grant the authority needed.

What is a Financial Power of Attorney? As you have already guessed, it is a power of attorney that addresses only financial issues.

What is a Durable Financial Power of Attorney? Durable simply means the document continues to be in effect if the Principal becomes incapacitated.

A Power of Attorney is only effective during your lifetime. After you pass away, your Agent no longer has the authority to handle your financial affairs. At that point, your Personal Representative or Executor will manage your estate.

Advance Medical Directive and Durable Medical Power of Attorney

An Advance Medical Directive (also called a Living Will) lays out your medical wishes in case you become incapacitated and are at the end of your life or are in a coma or persistent vegetative state that your doctor believes is irreversible. Generally, an advance medical directive states that you do not wish to be hooked up to tubes or a respirator, but that you do wish to have pain medication. However, your directive should clearly outline your wishes.

A Durable Medical Power of Attorney names someone to make medical decisions for you if you cannot.

Medical Release

A Medical Release (also called a HIPAA Release), made necessary by the Health Insurance Portability and Accountability Act (HIPAA), names people to whom your doctors can speak regarding your medical care.