The First Is A Medical Power Of Attorney

Few topics confuse investors more than figuring out what estate- related documents they need.

But being comfortable with these terms and what each one can do for you is important, and can make the difference between your wishes being followed or creating a nightmare. Living Wills, and Powers of, Living Trusts Attorney are just a few of the terms that most find hard to define, let alone understand. A Living Will is a document that is designed to convey your end- of- life wishes regarding medical care. The Living Will allows you to express your' will' concerning your end- of- life preferences. Many people have strong feelings about being kept alive by machines and feeding tubes. Please note that the Living Will doesn' t give any other person the right to make medical decisions on your behalf. A Living Trust is a vehicle that controls the management of your assets while you are alive and how they are distributed after your death.

A Living Trust, on the other hand, has nothing to do with end- of- life medical decisions. Plus, the assets owned by the Living Trust don' t have to go through probate before they are transferred to your heirs. Every adult should have a Living Will, regardless of age. So how should a Living Will and a Living Trust apply to you? A great deal of stress and potential conflict is removed from your loved ones when you clearly state your end- of- life wishes. For those with very simple estates consisting of a home and a few other accounts, proper account registration and transfer- on- death provisions can solve most estate problems.

But not every adult needs a Living Trust. But if you have out- of- state property, have children with, are remarried special needs, or otherwise wish to simplify the settling of your estate for your those you leave behind, then a Living Trust is something you should look into. Here is a simple way to understand how they work in general. Another very confusing topic concerns Powers of Attorney. An attorney is someone who acts on your behalf. You determine when that person can act on your behalf.

A Power of Attorney, is just a, then way for you to legally name who you want to act in your behalf. They can do so immediately, only if you should become incapacitated, or both now and during incapacity. For most estate planning purposes, you need two important Powers of Attorney. A Power of Attorney is only in force while you are alive. The first is a Medical Power of Attorney. Only your spouse has this authority without such a document. This allows you to choose who will make your medical decisions should you become incapacitated.

But what if something happens to your spouse, or you' re single? The second Power of Attorney you need is a Durable Power of Attorney for Assets. This document can relieve a lot of headaches in these situations. Not even your spouse can make financial decisions for you if you' re incapacitated. Without this document, should you develop dementia or end up in a coma, someone would have to petition the court to be appointed your guardian. This important document lets you predetermine who can manage your assets when you are no longer able to do so yourself. This process is expensive, extremely stressful and completely unnecessary, if you have a Durable Power of Attorney for Assets in place.

While you' re competent, you regain complete control. It's important to remember that these Powers of Attorney can be worded so they only become active should you become incapacitated. So every adult should at least have a Living Will, a Medical Power of Attorney and a Durable Power of Attorney for Assets. All you have to do is fill out the form and sign it in front of two witnesses. Many times you can get the forms for a Living Will and even a Medical Power of Attorney free of charge at your local hospital. In some states you may have to have it notarized. There are even kits available online for those do- it- yourselfers.

A Durable Power of Attorney for Assets should only cost around$ 100 and can be done by any attorney.