A will is only one important step to take in estate planning, however. You will also need documents to direct others to take actions on your behalf when you’re unable to do so.
A durable power of attorney is a document that names a trusted family member or friend and describes their rights and responsibilities in those circumstances.
If you are out of the country or are unable to handle your affairs due to an accident, a medical condition or dementia and have not drafted a power of attorney, no one will be able to write a check to pay for your medical bills or normal household expenses.
You’ll also need a pair of documents to cover medical situations where you become incapacitated due to an accident or illness:
- A living will details the level of medical care you wish to receive (or none at all) if you are unable to speak for yourself.
- A health care power of attorney allows the trusted person you appoint to direct the doctors to follow the medical directive and can make additional medical decisions for you.
In our next blog post, we will discuss several types of trusts.