Courtesy Leu & Peirce , PLLC
The New Year is a time for fresh starts and optimistic outlooks . After seeing family over the holidays and contemplating the future , many will add “ getting affairs in order ” to the New Year ’ s resolution list . Including the following necessary documents in your estate plan will help ensure that your affairs are in order , and will help protect you and your loved ones , no matter what the future holds :
• Durable Power of Attorney
• Medical Power of Attorney
• Directive to Physicians and Family or Surrogates ( Living Will )
• Authorization to Release Medical Information ( HIPAA Authorization )
• Declaration of Guardian
• Last Will and Testament
• Long-term Care Insurance
Many people think only of a Will when contemplating the legal documents necessary to protect their future . However , there are many more documents and considerations that are involved in developing a well-rounded estate plan . This is particularly true with regard to the documents that protect you during your lifetime . A Durable Power of Attorney and a Medical Power of Attorney are critical , yet often overlooked , pieces of long-term care planning , since they designate the person or persons who will be acting for you in the event you are unable to handle your own financial and health care decisions . Without these documents in place to protect you during your lifetime , no one is legally authorized to handle your finances or make medical decisions on your behalf . It is a common misconception that a spouse or an adult child has the legal authority to act for you . Unfortunately , though , without legal documents appointing these , or other trusted individuals , as financial and medical agents , the only way anyone can help you is to be appointed the legal guardian of your estate and / or person by a judge through a lengthy and costly court process . Although necessary in some instances , you can prevent this from happening by planning now and developing a comprehensive estate plan that includes more than just a Will .
Your estate planning documents are extremely powerful and should be executed after great contemplation . The people you appoint to act on your behalf as your agents should be only those with utmost integrity and whom you trust to handle your affairs now , as well as at the time when you cannot handle them on your own . If you do not trust the person you have named to act for you right now , be careful about naming that person to act for you when you are incapacitated . Further , alternates should be named in case any of the individuals you named are unable or unwilling to serve , so that you always have someone trustworthy in place to act on your behalf .
Everyone over the age of 18 should have a Durable Power of Attorney and a Medical Power of Attorney in place , because everyone , at some time , will need a financial and medical agent to act on his or her behalf . Both types of powers of attorney convey broad and strong powers , so before appointing an agent , you should consider who would be worthy of such authority . Often people prefer to appoint spouses , children , or other family members as agents , to keep affairs private and avoid hurting feelings . However , appointing a family member may not be the best option for everyone . In all cases , signing any estate planning documents should be done only after deep reflection as to the abilities and trustworthiness of each candidate .
Another often overlooked aspect to long-term care planning is preparing for the cost of funding long-term care . Americans are living longer than ever , and the cost of care in the final years of life has risen dramatically . Although not a part of the standard estate planning process , a long-term care insurance plan should be considered to help ensure that you have good options for quality care . While long-term care insurance is not for everyone , investigation into your ability to qualify and pay for such insurance is important . If you cannot qualify for long-term care insurance , there are other financial options that may fit your circumstances and will provide similar coverage for your long-term care .
Resolve to plan for your future , today . Traditionally , a New Year ’ s resolution is a promise of self-improvement . Make your future a priority and check these items off your resolution list , so that you can enjoy a fresh and optimistic start to your New Year .
Lori Leu , Erin Peirce , Lauren Olson , and Laura Chavero are Elder Law attorneys with Leu & Peirce , PLLC . located in Plano , Texas . They can be reached at 972-996-2540 .
DENTON COUNTY Living Well Magazine | JANUARY / FEBRUARY 2017
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