Why do you need an estate plan?
With a personalized, cohesive estate plan, you are making sure that you, your loved ones, and your assets are taken care of in the way that you decide. If you don’t have an effective Will or Revocable Trust at your death, state laws step in to dictate how your assets are distributed, who is appointed to carry out that distribution, and who is assigned as a guardian for any dependents you may have.
If you don’t have effective and up-to-date Powers of Attorney when you need them, your family will be required to open a court-supervised guardianship and conservatorship to manage your health care and assets. These court processes can be slow, difficult, and expensive. They can also be quite rigid, removing a lot of the flexibility that you might want for your care and asset management.
What is the key information needed to create an estate plan?
It is important for your attorney to gather enough information about your intentions and wishes so that they can create an estate plan that is custom and coordinated. Your plan should reflect the goals that matter most to you and incorporate the people who are most important to you. The questions in our questionnaire will help us gather these details so that we can have a full and meaningful meeting to discuss your planning.
Last Will or a Revocable Living Trust
These documents dictate where and how your assets are distributed. They guide the person you appoint to manage the distribution of your assets (your fiduciary) through the process according to your wishes. Most people only have one or the other. Many people ask whether a Revocable Living Trust provides any asset protection, and it does not.
Durable General Power of Attorney
This document designates an agent to help manage your finances while you’re still living but unable to manage them on your own. The document also includes a listing of what powers your agent is granted when acting for you.
Health Care Power of Attorney
This document designates an agent to make healthcare decisions on your behalf if you’re unable to communicate them yourself, and it outlines what powers your agent has when making those decisions. If you have minor children, these documents also provide for their care and health needs during your incapacity. This document can also allow your agent to communicate your wishes regarding life support and may include your wishes regarding organ donation and the disposition of your body.
Health Care Directive
This document (sometimes called a “Living Will”) describes your wishes regarding withdrawing or withholding life support in specific circumstances. Your wishes in this document are generally carried out by your agent named in the Health Care Power of Attorney.
Authorizations for Access to Personal Health Information and Digital Assets
These documents designate who has access to and can share your healthcare information, as well as some of your online information such as usernames, passwords, and the content of digital accounts (for example, photos and emails).
Coordinated Retirement and Life Insurance Beneficiary Designations
These documents provide the language needed to help coordinate your retirement assets and life insurance designations with the distributions described in your new Will or Revocable Living Trust.
How are all of these documents coordinated?
- During life, your Powers of Attorney and Health Care Directive make sure that your health care needs and financial assets are managed properly if you become incapacitated. If you have minor children, these documents also provide for their care and health needs.
- When you’ve passed, your Health Care Power of Attorney and Health Care Directive will ensure that your organ donation and end-of-life preferences are honored.
- After you’ve passed, your Will or Revocable Living Trust and your updated beneficiary designations will pass your assets to your chosen beneficiaries in the way you’ve decided.