Estate Planning ToolsDeath and disease are two harsh realities of life that can come to anyone anytime. One must always be geared up to face the same. Rather that depending on someone else to make decisions for your family after your death or while you are incapacitated, it is better to have your health and Estate Planning done as per your wishes while you are in sound health. There are certain tools that can help you in those critical times: Trusts and Wills A will is a legal document that states how your assets will be distributed after your death as per your wishes. It also gives you a chance to choose an executor and a guardian to look after your minor children is critical times. If you fail to take such important decisions in your will then the court may have to interfere and do that on your behalf. Would you ever like the court to take decisions which only you can take the best? However you should always keep in mind that property distributed by the means of wills are subject to Probate, which is a tedious and costly affair. Like a will, a trust shall also distribute your Estate the way you want besides additional merits of management of property and avoidance of Probate. This is because, unlike a will, a trust is an actual legal body in itself. But it just doesn’t mean that one can do without a will. For even the trusts need to have a will to operate upon. Power of Attorney A durable power of attorney works in the event of your incapacity. It’s a legal agreement that enables you to authorize a person who shall take financial and legal decisions in case you become incapacitated. Durable powers are applicable only in case you become incapacitated. Living Wills and Health Care Proxy Much similar to a durable power of attorney, a health care proxy shall help you nominate someone who shall take critical decisions related to your health, if you are unable to do so because of incapacity. The decisions involving your treatments, surgery etc. shall be taken by the person you designate in the health care proxy document. Living will, also known as a health care directive, is an agreement between you and your physician. This document will give directives related to the life-sustaining treatments he will be permitted to use in case of your incapacity. Decision whether to take life-sustaining treatment or not is entirely yours, thus making a living will an important Planning Tool. However, laws related to the treatment of living may differ from state to state. |
