Estate Planning Basics

Estate Planning Basics

In order for your wishes to be known and followed in the event of your death or incapacity, there are a number of things you must take care of before the need arises. If you have a family, traditional or not, a business, or charities you care about then these are some steps you should take care of.

• A Will: We already covered this in a previous post, the first thing you need to do is create a will if you don’t want some judge to determine what happens to all your stuff and who becomes the guardian of your children.

• A Guardian: Do you and your spouse agree on who should be guardian of your children? Have you talked with the potential guardians about your wishes to see if they are willing? Do they have the assets and time to take care of your children as you would want?

• A Durable Power of Attorney for Finances: Who will make financial decisions for you if you are unable? A durable power of attorney for finances gives another person that ability. These should be considered not only between spouses but also if you might need to take care of an elderly parent.

• A Durable Power of Attorney for Health Care & Living Will: Just as for finances, who will make health care decisions for you if you are unable to? The durable power of attorney for health care would enable your the person you choose to make decisions for you, which is especially important if they are not your legal spouse or parent. A living will directs your family and medical personnel how to care for you in the event you become terminally ill, including whether or not you wish to be placed on any type of life-support equipment or what type of heroic measures should be taken.

All these documents should be reviewed every few years or sooner in the event of major changes such as marriage, births, divorces, deaths, etc. And it should be obvious that an attorney who specializes in these areas is worth much more than they will charge to take care of these things for you. Not only do you want to make sure that the government does not make these decisions for you, you want to make sure that your wishes are followed and not some distant family member’s wishes.