Important Estate Planning Documents – Do You Have These?

People who have any doubts about their estate planning status should review it immediately. This task may be undesirable, but it is necessary and will be a huge favor to survivors. Planning goes beyond the simple death and taxes idea to include what would happen if a person is incapacitated but still living. For this reason, there are four essential estate planning documents everyone should have in order.

Will
Some people may not think they need a will, but these are important for all people to have. A will can ensure a person's wishes are followed after his or her death in many regards. A simple document specifying where everything will be directed after death is essential when there are multiple heirs. Another important part of a will is specifying an executor, which is the person who is in charge of making decisions about the estate and paying bills. It is helpful to let the executor know that he or she has been appointed, but it is not necessary to tell all heirs they are included or what they can expect. Financial experts recommend avoiding the idea that family members can just figure out what to do with assets and heirlooms. They recommend discussing this with family and outlining specifics in a will to avoid squabbles after the creator of the will dies. They also warn people to beware of online resources for cheap and easy wills. Some details may be left out this way, so it is best to discuss concerns with an agent.

Medical Power Of Attorney
This document may also be called a health care proxy. It allows any designated adult to make medical decisions for a person if he or she is unable to do so. It is important to choose a person with trusted judgment who has the ability to stay calm during a crisis while still exercising good judgment.

Durable Power Of Attorney
This document appoints another person as an agent to act with authority and make decisions for the creator of the POA if he or she becomes disabled. No person should take this decision lightly or make hasty choices. The role of power of attorney gives a person long-lasting power. The person chosen should be trustworthy and financially responsible. It is always important to name a backup person as well. Some people will name their spouses, but if a couple is injured in an accident at the same time, this will create a problem.

Living Will
Living wills may also be known as advanced directives or advanced health care directives. They specify the wishes of the creator for his or her end-of-life care. This includes topics such as life support, resuscitation and feeding. It is important to sit down and talk to loved ones about individual wishes when it comes to living wills and medical power of attorney forms.

Financial experts recommend keeping finance records, medical records and all important documents in a safe place and keeping them together. Avoid putting them in a safe-deposit box, because a person will need to show proof of power of attorney to access it. Update financial information every year, and make sure it is updated on any necessary documents as well.

For more information, feel free to Contact Neptune Financial to schedule an appointment.

Basic Understanding

This blog is being provided for informational or educational purposes only. It does not take into an investment objectives or financial situation of any individual, family, prospect, client, or prospective clients. The information is not written or intended as investment advice and is not a recommendation about managing or investing your retirement savings.

An individual seeking information regarding their investment or retirement needs should contact a financial professional.

Neptune Financial, and their financial professionals do not render tax and legal advice. Please consult your tax and legal advisors regarding your personal tax or legal concerns.