When you think of estate planning, do you think of passing on your assets after you pass away? Maybe you also think of funeral plans and other last wishes. However, estate planning can be heavily affected by something other than your death. What happens if you’re suddenly incapacitated, cannot communicate your wishes, or can no longer make important decisions?
You may even be expected to recover, but in the meantime someone else needs to step in and manage your financial and personal decisions. So when you’re beginning to make the important decisions involved in estate planning, consider the following options:
Draft a living will. You may already be aware of the importance of a living will, due to high-profile news stories in which family members become embattled over the health care decisions of a loved one. Such a situation can cause considerable strain for your loved ones, and your fate could be decided by a court instead of by you. If you draft a living will, your physician will have a legally-binding directive which tells him which life-sustaining treatment you will accept if such circumstances occur.
Designate a health care proxy. If you are ever incapacitated, your health care proxy would make important healthcare decisions on your behalf. This person will decide upon surgeries, treatments, and facilities in the event that you are unable to communicate your wishes. Choose this person carefully, because it should be someone who knows you well enough to anticipate how you would feel about various medical decisions. This person should be familiar with your health history, past surgeries, allergies, and so on. You may also wish to designate a back-up proxy.
Consider dual power of attorney. This will allow you to choose someone to handle your financial and legal affairs in the event you are unable to do so.
Don’t leave your future up to fate! Speak to your estate planning attorney now, and make sure your wishes are detailed in a legally binding document.
