What Estate Planning Documents Should I Update?
One silver lining to a pandemic - the spur in our saddle to think more deeply about having our affairs in order. That may be your heating and air conditioning. It may be calling your mother. And it also may include insuring that your estate planning documents are up to date and that they reflect your current circumstances and goals. Changes to our health, our family configuration or relationships, or even alterations in our values or viewpoint might warrant a review of those documents. There is also an evolving tax climate that require some adjustments to your overall plan. Given the flux of our times, a review of estate planning documents is particularly important.
Some of the main legal documents that you might want to revisit include:
Financial Power of Attorney - This legal document authorizes an appointed individual to act as your agent if you are in a time of need or if you are incapacitated. The duties of the agent include overseeing properties, paying bills, making deposits, buying and selling assets, and signing tax returns.
The named agent should be someone trustworthy and nearby and who will have the energy and good judgement to manage your affairs in a timely manner. It may be a family member or a trusted friend who has exhibited these qualities of honesty and common sense. You will also want to have a back-up agent in place in the advent that the original agent is able to serve in that capacity.
Without a financial power of attorney in place, there may be no one legally authorized to manage your affairs in the way you would prefer. Family members may be required to have the probate court appoint a guardian to take over these duties. Obtaining a guardianship is time-consuming - and even more so during this time of pandemic.
Health Care Power of Attorney - This legal form allows someone close to you to make medical decisions on your behalf in a situation where you are unable to do so. Your health care agent should be someone who understands in advance your general wishes for care management and medical treatment.
Last Will & Testament - This legal document allows you to direct the distributions of your estate at the time of your death. You will choose an executor to oversee these distributions on your behalf. Without an executor, the courts will appoint someone to oversee the distribution. If there are dependent children, your will is also the place to designate a guardian to care for their needs.
Remember that the team at Hillsborough Wills & Trusts has the expertise to help you Build Your Circle of Security. Contact us at: