Legal 411: Life Planning
WHAT IS…
a WILL?
A will is a legal document that, upon your death, explains how you would like your property distributed to designated people known as heirs. Property includes any real estate, personal property, and financial accounts that do not already have a designated beneficiary. This document allows you to clearly state who gets what property and how much. Without a will, your property may not go to who you would like and your heirs may have to devote significant time and money in order to access your property. The will also names an executor to administer the estate by carrying out your wishes. Having a will is also important because you can make recommendations on who should care for any minor children. Wills are powerful tools because they can help avoid confusion and stress experienced during the death of a loved one. A will grants you peace of mind in knowing your interests and property are protected after death and allows you to provide for your loved ones.
POWER of ATTORNEY?
Power of Attorney (POA) is a legal document in which you identify another individual to act on your behalf regarding legal decisions. A POA can be designated to make decisions about your property and finances. A POA is important because it allows someone else to handle your affairs, if you cannot, such as you become incapacitated. This chosen representative can sign certain documents on your behalf, buy and sell property, and speak on your behalf to designated entities. POAs deal with decisions made during your life and the powers designated terminate upon death. A healthcare surrogate is similar to a POA but is a legal document identifying an individual to make medical decisions on your behalf. Often times an alternative person is named as POA if the first named person is unavailable to carry out their duties.
a LIVING WILL?
A living will is a legal document that expresses your wishes regarding medical care if you become unable to make those decisions yourself. Typically, a living will applies in critical healthcare scenarios, and are useful in making sure that the wishes of an individual are met when terminally ill or injured. These decisions often include the acceptance or rejection of medical care or life-sustaining treatments in extreme medical crises. A living will is a very personal document due to the nature of the choices. It is crucial in avoiding unnecessary turmoil over the wishes of an individual in a dire medical situation. Note that a person can have both a POA and a living will. Maintaining a living will can ease the burden on your representative by providing them clear guidance as to your wishes in an end-of-life situation.