Tag: Power of Attorney

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Three Parts of a Basic Estate Plan

Every person, no matter how significant they may feel their assets are, absolutely needs to have a well thought out estate plan that covers three very basic documents that will serve your best interests and make the lives of those you care about that much easier when the time comes. The three main planning instruments you should have include a durable power of attorney, a health care directive, and a last will and testament. These instruments will cover an array of subjects in our lives and our family’s lives after we pass away and should be taken very seriously, regardless of what you believe you may leave behind.

Power of Attorney

 

The first thing you need to include in your estate plan will be a power of attorney. This allows you to designate a person of your choosing to manage your property, assets, and finances during your life in the event you are incapacitated and unable to act in your own interest. A power of attorney carries a lot of weight and gives someone almost complete control of your financial life and should be vested in a trusted individual you can be sure will act solely in your best interest should a time come where you can’t handle these situations yourself.

Healthcare Directive

 

The second thing you should look into is a health care directive. A healthcare directive is essentially a type of a power of attorney that deals only with health care decisions. A healthcare directive allows you to appoint a trusted person to direct your medical care and make important end of life decisions should you be unable to.

 

Last Will and Testament

The third and most essential piece of estate planning is your last will and testament. A last will and testament is the most basic mechanism used to transfer property to family and friends upon our death. There are numerous other ways to pass along our assets and other parts of our estates, including various forms of trusts, a last will and testament is still necessary to direct our loved ones whom we leave behind about our final wishes including whether we wish to be buried, cremated or shot off into space, types of memorial services and other ways in which we want to be remembered.

It is important to understand that these are just the essentials of an estate plan and what you will ultimately need will vary depending on what your leave behind and who you wish to leave it to. Significant assets like large bank and investments accounts, your home or other real estate assets, your business, and other valuables like expensive jewelry or art may need even more extensive estate planning that satisfies everything from family dynamics and business partners to tax and legal considerations.

If you find that your basic estate planning is not where you want it to be, schedule a no pressure, complimentary consultation with one of our attorneys today so we can go over your wishes and create a basic estate plan that will leave you with peace of mind and your family with valuable information about your wants and desires when the unthinkable happens.

Don’t Make and Estate Planning Mistake

In life, it’s easy to make a mistake. Estate planning is one of the most important things you can do in life.  It should be taken very seriously in order to avoid hassles or other delays that can come when you probate your will and begin transferring assets to family and friends.  With the correct planning, most people are able to avoid the costly mistakes that can lead to a prolonged and painful probate battle.

One of the most common estate planning mistakes you can make is adding a friend or young family member’s name to a joint account.  You may think that it will make it easier to transfer assets or even pay final expenses. Often that isn’t true. It can cause confusion about your intentions once you pass and can complicate the probate process.  It could also open you up to potential unscrupulous conduct by those you put on your account. The better alternative would be to give a trusted person a power of attorney to make financial decisions on your behalf in the event that you are unable to.

Another common mistake is not updating beneficiaries.  By having the wrong beneficiaries listed on bank accounts, life insurance policies and retirement accounts you can prevent your assets from being transferred to your intended beneficiaries. Often, individuals will create a single will and never bother with  updating it when major life events happen like having children or grandchildren, divorcing or remarrying or the death of a loved one. If you don’t update your will when these types of things happen your estate could essentially become intestate and you could be setting your heir up for a legal fight or a situation where the state itself decides what happens to your assets.

Out of all the mistakes listed above, the biggest mistake is having no plan at all.  Yes, there are legal mechanisms that will provide for your surviving spouse and your children and grandchildren but the state can’t possibly understand all your wishes and what you wanted may ultimately not happen.  Estate planning is essential to your piece of mind and also to those family members and friends who will survive you. If your estate plan is lacking, contact the caring and competent attorneys at Harmon and Gorove today for a free consultation about what your estate planning options are.