The two main Power of Attorney types you may wish to consider adding to your overall estate plan are a Medical Power of Attorney and a Financial Power of Attorney. These extend the power to others to act on your behalf when you cannot. Learn the benefits and differences of these two documents that aid you times of crisis.
When you think of the various documents inherent in estate planning, a medical power of attorney probably is not the first one that comes to your mind. Nevertheless, the importance of this document cannot be overstated. This is especially true during the new normal of the continuing pandemic caused by COVID-19 and its Omicron variant.
According to a recent survey, 68% of Americans don’t have a will. And if they don’t have a will, they almost certainly don’t have any type of estate plan. Why is this?
Unfortunately, many people don’t think they need to make a last will and testament. They may think they’re too young or that they haven’t accumulated sufficient wealth to make a will necessary. If you are one of these people, you may wish to reconsider your ideas, especially after reading the following case study that exemplifies the problems the lack of a will can cause.
One of the most important conversations to have as a family is how to handle the finances of aging loved ones. Naturally, most individuals wish to maintain personal control over their assets for as long as possible; however, incapacity at old age is a reality. If your loved one loses the ability to make decisions, somebody will need to make those decisions in their stead.
One of the quickest ways to start a family feud is to die without a Will in place, particularly if you have several adult children. While everybody would like to believe that cooler heads would prevail when it comes to disseminating your estate, this is rarely the case without the support an estate plan and a Will gives.
Thinking about the end of your life may be stressful, but the more you prepare, the better the situation will be for you and your loved ones. For instance, in the story of Cynthia McKennedy, having an advanced care directive was crucial to ensuring that her physician honored her end-of-life wishes when she was not lucid enough to advocate for herself. Not having one would have put an unbelievable amount of stress on her family during an already-difficult time.
Nobody likes to think about being medically incapacitated. However, when it comes to managing your estate, it is vital to plan for the worst case scenario. For instance, if you know that dementia runs in your family, creating a plan early is of paramount importance.
For the majority of Americans, the most expensive item they will ever buy is a home. Thus, it comes as no surprise that properties tend to be a linchpin concerning estate plans. It is important that you weave your estate throughout your home buying process to ensure that you are well-placed in terms of taxation and inheritance.
Nobody likes to think about needing a living will. For the majority of us, the idea of being medically incapacitated is terrifying. However, having a living will on hand is extremely important.