ESTATE PLANNING - What documents do you need?

Estate planning, to many, generally means executing a will. But estate planning encompasses much more.

Estate planning can include legal documents in the event of a medical emergency, such as incapacitation and therefore the inability to give informed consent. In that case, several legal documents may come in handy:

1. Health Care Proxy - A health care proxy allows someone the legal right to make decisions for another in the event that person is unable to make their own decisions;
2. Durable Power of Attorney - There are two forms of durable power of attorney. In general, a durable power of attorney appoints an agent the ability to handle specific health, legal and financial responsibilities. A durable power of attorney for healthcare allows the agent to have access to medical records and healthcare information. In a financial durable power of attorney, the agent will have the authority to handle finances, i.e. paying bills, managing investments, completing tax filings, mortgage and sell real estate, and make financial decisions. Boundaries can be set forth within the legal document in order to ensure proper handling of financial and healthcare matters.
3. Living Will - A living will allows a person the opportunity to express in writing their own wishes regarding medical treatment when he/she is no longer able to give informed consent. The primary purpose is to make the decision on whether or not remain on life support or receive extraordinary measures in the event of a health crisis; and
4. Revocable Living Trust - This allows a person to appoint a successor trustee to manage assets held in a trust in the event of their incapacitation.

Other avenues in estate planning involve non-emergency situations and can include:

1. Setting up a Trust - A trust holds assets on behalf of a beneficiary or beneficiaries to be dispensed at a particular time. Trusts usually avoid probate and therefore beneficiaries may be able to gain access in a more timely fashion than transference through a will. There are several forms of trusts so be sure to consult an attorney on the best for your needs.
2. Last Will & Testament - Sets out the way in which a person would like their final wishes for their possession and any dependents.
3. Beneficiary Designations - 401(k), life insurance and even bank accounts can have a designated person listed in which should anything happen would be dispensed to the designated person.

To determine which legal documents would be best for your particular situation and/or in the event of an emergency, consult with an attorney.