Living wills have received a great deal of attention due to the recent Terry Schiavo situation. Because her end-of-life wishes were in dispute, family members battled each other in the courts over her treatment and care. By having a proper Living Will, you can avoid such confusion. But a Living Will doesn't ensure you have all your bases covered. There are other equally important documents you must have in place.
A Living Will deals with end-of-life issues. But what if you're incapacitated-unable to make your own medical decisions-- for a short time? Who makes medical decisions for you then? What if you're widowed, divorced or unmarried and you don't have a spouse who can legally make medical decisions when you can't? A health care power of attorney allows you to state whom you choose to make medical decisions on your behalf should you not be able to make them yourself. You can also list alternates, should your first choice be unable or unwilling to serve.
A health care power of attorney is especially important for those who have lost a spouse and have several living children. Often if Mom or Dad become seriously ill, it's the out-of-town child that pushes to do everything they can to extend their parent's life. The last time they saw Mom, she was busy fixing Thanksgiving dinner. Now that she's in a coma, they have trouble grasping the concept that Mom will never be the same again. And if Mom doesn't wish to be hooked up to machines for weeks on end, her out-of-town child might not understand.
You can just imagine the kind of arguments that can arise when children don't agree on the proper care of their parent. You can eliminate that situation by designating one child to be your attorney-in-fact. Clearly state in writing through your Living Will and your health care power of attorney, what your specific wishes are. Communicate those to your children, especially your chosen representative. Then if the time comes, you've greatly eliminated any possible confusion and ambiguity.
A health care power of attorney is activated by your incompetence. Incompetence is often determined based on the opinion of two doctors. With the new HIPPA regulations, this can be a problem. For instance, your doctors may not be willing to offer that opinion citing HIPPA restrictions (HIPPAA does not restrict release of information in those situations). So make sure your health care power of attorney includes language authorizing the release of that information.
With all the focus on health care and medical issues, many people forget the practical financial issues that can arise when someone is incapacitated. I've seen first hand situations where one spouse develops dementia but still has assets in his or her name. The other spouse is helpless to manage those assets or use them to help cover their loved ones' care. In these cases, the courts have to determine guardianship, which is not only expensive, but emotionally draining for the family.
All this can be avoided with a Durable Power of Attorney for assets. In this document, you choose a representative to make financial decisions on your behalf. You determine when you would like their authority to begin. This makes it much easier to pay your bills, file your taxes, manage your retirement accounts, etc. And again you can list alternates in case something keeps your first choice from serving.
If you have minor children, there's one more document you really must have. The Appointment of Guardian states your choice for who will raise your children in the event of your death. The court still has to make guardianship official, but this document will clearly express your wishes. This document can help your kids avoid being caught in a legal tug-of-war.
As the Terry Schiavo case shows us, these documents aren't just for the elderly. Having them in place will not only make it easier on your loved ones should the unfortunate happen to you, but they will also help ensure that you are properly cared for according to your wishes.
Got questions? Feel free to ask me at www.guardingyourwealth.com. I'm in the enviable position of not having to garner new clients and I'd be glad to give you my unbiased opinion. Visit our web site to read previously submitted questions and answers.
SPECIAL REPORT:
Has this 'Investment From Hell' been recommended to you by your advisor?
I hope not! This complimentary 47-page Special Report is jam-packed with
solid information you need to know to protect yourself. This report
could save you and your loved ones tens, even hundreds of thousands of
dollars. To get your copy just click here:
http://www.guardingyourwealth.com/SpecialReports/GeneralEIA.htm
In addition to being a nationally syndicated columnist and Certified Financial Planning Practitioner, Mr. Voudrie serves clients nationwide using a proprietary money management system he's personally developed.
Listed below are more articles related to the above article from the "Estate Planning" article category.
People interested in the above article "Estate: Beyond The Living Will" are also interested in the related articles listed below:
The real estate sector is a field that grown rapidly and also considers that it will be get mount in new future. If you are willing for properties in India, there are several real estate firm help you to finding best properties. Here you can get information about properties in India, home loans, home loans companies, etc.
Sickness and death are tragic realities that every family will need to deal with at some point. Too often, this planning goes neglected because the subject is difficult to deal with for many, or simply too confusing. Many consider "estate planning" to be only for the wealthy with sprawling country homes filled with valuable antiques and tapestries. However, this could not be farther from the truth. While most wealthy do have estate plans in place, they are also critical for those who are not wealthy, to ensure that their needs and desires are met in both sickness and health.
With over 20 years as a Temecula Valley and San Diego financial advisor, I have seen tremendous fortunes eaten by inheritance taxes. Recent legislation introduced a temporary estate planning option called "portability" which allows a surviving spouse the ability to utilize a previously unused portion of estate tax exemption from their deceased spouse. This new proposal could minimize the amount of estate taxes paid by married couples.
Forest owners who plan to develop around wetlands and streams on their property are doing themselves no favors when they fail to get the their clean water permits from federal agencies. Although it's tempting to tell yourself you might not need one, failing to get one exposes you to a variety of financial and legal risks.
Many charities will give you annuity payments if you make a donation. Your rewards from charitable giving need not be limited to a good feeling and a tax deduction. You can get cash back, too. Many charities offer charitable gift annuities. With a CGA, you give assets to a charity or nonprofit organization in return for a stream of cash flow.
Here's an estate-planning technique that allows you to lower the tax sting to your heirs, and that reduces your retirement income in case you don't think you will need all of your Individual Retirement Account funds in retirement. It's called a "stretch IRA," or "Multi-generational IRA," a complex investment tools that allow you to extend the tax-deferred status of your IRA long after your death.
Asset Protection is everyone's desire, but adults share a characteristic - that they may be sued at anytime, for any reason, whether founded or not. Civil actions range from the serious to the frivolous. Did you offend someone today with something you said? Did you cause someone to suffer sudden whiplash syndrome in the parking lot? Are you a professional facing a disgruntled client or patient? Do you own a company employing someone who did something irresponsible on company time? Did you err on the side of caution... or throw caution to the wind?
