A lot of people procrastinate when it comes to estate planning, and when they finally take action, they cover the bare minimum. They quickly draw up a simple will and they leave it at that.
Any action is better than none at all, but this is a serious matter, and it should not be taken lightly. After all, when you plan your estate, you are passing along your legacy to the people that you love the most.
You should put in the effort that it takes to facilitate a smooth estate administration process, and some of the decisions that you make may directly impact you before pass away. In this post, we will look at three important details that should not be overlooked.
Advance Directives for Health Care
No one is anxious to think about this subject, but the hard truth is that many people become unable to communicate medical decisions at some point.
This is relevant to elders, and younger people can be in this position as well due to catastrophic illnesses or injuries sustained in accidents. To account for this eventuality, your estate plan should include documents called advance directives for health care.
A living will is one of these directives. You use this type of will to state your wishes with regard to the use of life-support measures like resuscitation, mechanical respiration, and artificial nutrition and hydration.
If you have comfort care medication preferences, you can state them in the living will. This document can also include your organ and tissue donation choices.
There are medical situations that can arise that are not directly related to life-support when you are unable to communicate. To account for this possibility, you should add a durable power of attorney for health care.
The “durable” designation is significant, because this type of power of attorney will remain in effect if you become incapacitated. In this directive, you name an agent to make medical decisions that are not related to life-support. In California, your Advance Directive for Health Care typically includes both the living will provisions as well as durable power of attorney.
Another piece of the puzzle is a HIPAA release. This acronym stands for the Health Insurance Portability and Accountability Act. This release will give doctors the ability to discuss your medical condition with your health care representative.
Letter of Last Instruction
Your executor will need certain information to be able to complete the estate administration tasks. It can be passed along in a document called a letter of final instruction.
In this letter, you point the executor toward the important documents that they will need, and you should share contact information for accounts that you manage online. The names and contact information for people that should be notified about your passing should also be listed.
The location of keys to vehicles, real property, storage units, etc. should be added, and if you have made any final arrangements, you should explain them to the executor.
These are a handful of things to think about, but you simply ask yourself what the person is going to need and convey this information in the letter.
Beneficiary and Successor Beneficiary Designations
You should make sure that the beneficiaries that you have named on your insurance policies, individual retirement account, and payable on death accounts are up-to-date. Plus, in addition to the primary beneficiaries, you should name successor beneficiaries to step in if it becomes necessary.
Designate a Guardian for Minor Children
If you are the parent of dependent children, you should take nothing for granted because you never what the future will hold. Even if you use a living trust as your asset transfer vehicle, you should name a guardian for your children in a simple will.
When both parents are living, guardianship should definitely be addressed. However, if you are a single parent, it becomes an absolute necessity.
Need Help Now?
We are here to help if you would like to work with a Burbank, California estate planning lawyer to develop a custom crafted plan to preserve your legacy and protect your family. You can call us at 818-937-2335 to schedule a consultation, and you can use our contact form if you would rather send us a message.
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