Your last will and testament, often just called a will, details how you want your estate to be dispersed after you pass away. You can list specific assets, such as your property, money and personal possessions. Wills also detail the care of dependents, including children and adult dependents, and pets after you're gone.
Without a will in place, the state decides how to disperse your assets. States have laws that dictate what happens to your estate. To avoid this situation and have full control over what happens to your estate after you're gone, create a legal will. If you already have a will, it's a good idea to review it every 3 to 5 years or if you have any major changes in your life.
Even with a will in place, your estate typically goes through the probate process after your death. This allows the courts to decide if the will is valid. The probate process can take months or even years if your estate is complex. Your loved ones and beneficiaries have to wait until the probate process finishes to gain access to the assets. Going through probate court can add stress to an already difficult time and cost your loved ones money.
Establishing a trust eliminates the probate process. When you place your assets in a revocable living trust, they go directly to your designated beneficiaries upon your death. You can establish a trust with a legal document that designates beneficiaries. You can also use a revocable living trust to name a trustee who can take over your financial and property decisions if you can no longer handle those responsibilities.
A power of attorney is a legal document that lets you choose a person to handle your finances should you become incapacitated. With a durable power of attorney, the agent makes financial decisions on your behalf if you're no longer able to make them. This person is supposed to make decisions as you would have made them yourself. Choosing someone you trust and talking to them about how you want them to handle your assets can help protect you.
You can choose a general financial power of attorney, which grants the agent control of various property and financial decisions based on what your state allows. This often includes managing your bank accounts, filing taxes, signing checks and selling real estate. Another option is a limited financial power of attorney, which only gives the person control of the specific financial tasks listed in the document.
You might also choose to set up a medical or health care power of attorney. This legal document is similar to a financial power of attorney except the agent you name makes medical decisions on your behalf. It goes into effect if you can no longer make medical decisions for yourself. Once in effect, the agent decides which medical treatments you receive, when to stop medical care and other health-related decisions. It's also important to make sure the agent you choose understands your wishes, just like your financial power of attorney agent.
A living will is different from your last will and testament. This legal document is a type of advance directive that details what types of medical care you want should you not be able to express those wishes for yourself. You can include as much detail as you want to let others know whether you want certain types of medical treatments. The document also lets you specify if you only want certain medical procedures in specific situations.
You can also indicate how long you'd want a certain treatment to last. For example, if you need to be fed through a tube, you can say that you want that treatment but only for a certain amount of time. If you haven't improved by that time, you no longer want to receive that medical intervention. It also lets you indicate what you want to happen at the end of your life, such as donating your organs or donating your body to science.
Consult an experienced attorney who specializes in these types of documents if you need assistance. In many states, you can prepare these legal documents yourself using online templates. You may need to have the document notarized or follow other steps to make it legally binding if you do the work yourself.
Gather copies of your important legal documents and other information your loved ones might need in case you become incapacitated. Placing them in a secure drawer or fireproof box helps keep them safe. Make sure your loved ones know about the documents and how they can access them. Reminding them of your wishes is also helpful.
At Bethesda Gardens Phoenix, we provide a supportive, caring environment for our residents. When you need care beyond our scope, having these important legal documents in place ensures your wishes are followed.
