Legally Speaking

When was the last time you examined each of your legal documents? It may be about as much fun as doing your taxes, but it is necessary if you want to keep your affairs in order.

The Foundation

A will is typically the foundation of most estate strategies. It is a legal document that dictates how your assets will be transferred when you’re no longer here. In this document, you will name a personal representative or executor to execute the terms of your will. This person is responsible for settling your financial affairs.

The will should also name a guardian (or guardians) if you have minor children. Because a will is probated, you may want to consider a trust to distribute your assets if you would rather keep your affairs private.

Financial Powers

A durable power of attorney, who can also be an executor, is an important part of a basic estate strategy. The person to whom you grant this power can not only tie up financial matters after you’re gone, but also handle them if you should become incapacitated or even if you are temporarily out of the country and out of touch.

Healthcare Powers

A healthcare power of attorney, also known as a healthcare proxy, gives a person you name permission to make medical decisions for you if you can’t make them for yourself. Be careful to pick someone who understands your wishes ahead of time.

Living Will

If you would rather make your own healthcare wishes known, you can write them into a living will. This document, also known as an advanced directive, should stipulate end-of-life medical measures you may or may not want.

Talk with an estate planning attorney to learn more about these important estate documents.