Nobody likes to think about growing old, and planning for when we may no longer be around. It’s really not a fun task, but one most of us know is necessary. However, almost half of us age 55 and older have no will, and many of those with a will do not have the other documents needed to ensure their final years are lived the way they choose. The following three (and likely four) documents mentioned below are ones everyone should have in place.
1. Will
Most everyone knows what a will is – a legal document stating how you would like assets distributed after your death. It’s typically a straightforward process, especially if you are married and want to leave everything to your spouse and kids. Technically, a will does not need to be written by an attorney, but it is highly recommended that it be done by one in order to make sure it is done properly.
2. Living Will
A living will is a document which lets healthcare professionals know what to do when you are too sick to communicate. It can indicate whether you when you would like medical treatment to stop, or whether you want passive feeding (a feeding tube) to be withdrawn. This document makes sure your wishes are followed, and can spare loved one agonizing decisions about your healthcare. Unlike a will, an attorney does not need to draft this. In fact, many living will forms can be found online (many state Bar Associations have drafted a living will that can be easily downloaded). Just make sure you have it notarized or witnessed (the amount of witnesses may vary by state). The great thing about a Living Will is that a copy is as good as an original, so once you have completed a Living Will it is a good idea to give copies to your loved ones and any medical professionals you see on a regular basis.
3. Durable Healthcare Power of Attorney
Just as a living will gives you the power to decide your care, a durable healthcare power of attorney gives that power to someone else if you are not able. This typically applies in cases where you are either physically or mentally unable to make a decision about your care.
4. “Financial” Power of Attorney
A power of attorney (POA) can be a wonderful tool to ensure that your financial decisions are being made if you are no longer capable of making such decisions. It can take away the worry of making sure your bills are being paid, deposits are being made, taxes are being paid, and more. However, there are dangers. The individual you name in your POA has complete control over you finances, meaning the possibility of abuse and/or fraud is present. In order to minimize this risk, make certain that person named in your POA is someone you absolutely trust. This is one document that you should have an attorney prepare for you. If you are not comfortable with someone taking over your finances, you may not want to draft this document. It is important to note, though, that as people age their change of becoming disabled increase, so this is something to definitely consider when deciding whether you should execute a POA.
There are other documents you can prepare to help ensure your health and financial wishes are met, but the above are vital, and every individual in their 50’s or older should definitely consider preparing these documents.