As you grow older, you might begin thinking about how to ensure your objectives will be carried out when you pass away. But it’s important to understand that estate planning involves much more than executing a last will and testament — it also has to do with planning for the possibility that a day might come when you can no longer make decisions for yourself. Critically, there are several tools that you can use to communicate your wishes to your loved ones in the event of incapacity or death.
The following are five legal documents every senior should have:
1. A Last Will and Testament
A last will and testament is the foundation of every estate plan. It designates an executor for your estate, names beneficiaries who will receive your assets, and provides instructions regarding how you wish your property to be distributed upon your passing. Although it does not avoid the public probate process, a well-drafted will can help to avoid conflict among family members.
2. A Living Trust
Another legal document every senior should have is a living trust. This is similar to a last will and testament, but there is one crucial difference — while a will can only distribute your assets when you die, a living trust can go into effect while you are still alive. Specifically, a living trust allows you to maintain control over your assets during your lifetime and appoint a successor trustee who will manage them when you pass away, or if you become incapacitated.
A living trust can come with numerous advantages, including avoiding the probate process and allowing you to specify how and when your beneficiaries will receive their inheritance. It is also flexible, meaning you can change how the trust works or what assets are included in it while you are alive.
3. A Durable Financial Power of Attorney
The third legal document every senior should have is a durable financial power of attorney. If you become incapacitated and can no longer manage your financial or business affairs, a durable financial power of attorney can specify who will manage them for you. Depending upon the terms and instructions, this document can grant an agent of your choosing the authority to do the following:
- Pay your bills
- Enter into contracts
- Open and close bank accounts
- Run your business
- Take out loans
- Oversee your retirement accounts
- Handle ongoing expenses
- Manage real estate
- Make investments
- Pay medical expenses
- Collect government benefits on your behalf
A durable financial power of attorney must be signed while you are still of sound mind. Notably, once you have been declared legally incompetent, it is too late to execute a valid durable financial power of attorney. If you do not have a durable financial power of attorney in place and become incapacitated, the court may appoint someone to manage your affairs for you — this legal process can be lengthy, time-consuming, and costly for your family. It’s best to ensure you have the appropriate documentation in place.
4. A Healthcare Power of Attorney
A healthcare power of attorney is a document that specifies who will make medical decisions on your behalf if you are unable to make them for yourself. You should choose a person who you are confident will act in your best interests. The decisions your healthcare agent may have to make can include consenting to medical care or procedures, making arrangements for hospitalization, and deciding end-of-life care based on your preferences. You can provide your healthcare agent with a living will that gives specific instructions as to what treatments you would want — or not want — to receive.
5. A HIPAA Release Form
The Health Insurance Portability and Accountability Act (HIPAA) regulates the privacy of medical information. This is a federal law that prohibits medical providers from disclosing health information without permission. Even if you have executed a healthcare power of attorney, you will still need to sign a HIPAA release form in order for your chosen agent to have access to your medical records. This is a legal document every senior should have and can help ensure your loved ones are easily able to get the information that they need to obtain from your healthcare provider. However, it’s essential to be aware that the document must be in proper format to be accepted by hospitals and other healthcare facilities.
Contact an Experienced Ohio Estate Planning Attorney
If you are beginning the estate planning process — or are considering updating an already existing estate plan — it’s important to have the guidance of a knowledgeable estate planning attorney. At Middleton Law Offices, our attorneys are dedicated to providing you with the time and attention you deserve as we walk with you every step of the way to create an estate plan that will ensure you have peace of mind. Located in Bowling Green, we have been serving clients in Ohio regarding their estate planning matters for more than a century. Contact Middleton Law Offices today at 419.548.0196 for a consultation to learn how we can help.
Articles appearing in this column are intended to provide broad, general information about the law. This article is not intended to be legal advice. Before applying this information to a specific legal problem, readers are urged to seek advice from a licensed attorney.
