Remember that old adage, nothing is certain except death and taxes. Well, no matter your belief structure, or whether you’re reluctant to admit your own mortality, it’s a fact that none of us will live forever. And since no one knows if their demise will happen quickly or be proceeded by a lengthy illness, it’s good to make plans ahead of time for your care while you’re alive as well as the disposition of your estate when you’re gone. To make sure your wishes are followed, there are several documents that will help.

 

Healthcare Power of Attorney also known as the Healthcare Proxy. If you can’t make medical decisions yourself, you need someone who will according to your instructions. The Healthcare Power of Attorney allows you to designate that person and eliminates any question about who you want to be in charge.

 

A Living Will dictates what you want done if you are terminally ill, permanently unconscious, or in a vegetative state or some other end-stage condition. It tells everyone if you want the removal of life support or if you want heroic measures to keep you alive as long as possible.

 

A similar document is POLST. Physician Orders for Life Sustaining Treatment forms express your end of life wishes. You fill it out, the doctor signs it, and it becomes part of your permanent medical record. It’s a standing order that medical professionals are bound to follow.

 

Do Not Resuscitate (DNR) orders should be part of your advance planning. DNR orders tell medical personnel NOT to perform CPR or other procedures to revive a person if their heart or breathing stops. WITHOUT a DNR, medical personnel will use aggressive measures to bring you back. There are several levels of DNR that vary from state to state and facility to facility, so check the specifics where you live.

 

The Healthcare Designation form lists the people authorized to receive medical information from your healthcare providers. It can eliminate conflict among family members at a time when emotions run high.

 

A Durable Power of Attorney appoints someone who will make sure your bills get paid and other financial matters handled if you are incapacitated. Some banks require their own forms and want the forms updated regularly.

 

Diminishing Capacity Letter. This gives permission to your professional relationships, such as investment advisors, bankers, insurance agents, etc., to call designated individuals such as your powers of attorney or a family member if they notice some diminishment in your physical, cognitive, mental or psychological capacity.

 

Organ Donor Designation. It used to be that checking the donor box on your driver license was enough. Not anymore. Your license may not end up at the hospital with you. Without an Organ Donor Designation form, a family member or Healthcare Power of Attorney may override your wishes.

 

Three things to keep in mind about your healthcare documents:

  • They need to be current. Laws change and that can affect your decisions. The documents should be reviewed at a minimum every four years.
  • Documents should be able to cross state lines. Some healthcare documents refer to specific statutes in your state of residence, which could limit the type of care you receive if you travel to another state or internationally.
  • Documents must be easy to understand. Often healthcare documents are awkwardly written or full of legal language. They may be legally correct, but if a healthcare professional can’t fully understand what the documents allow, your treatment may not be as comprehensive as you’d like.

 

What happens after your death? There are documents that will make distribution of your estate easier on your heirs.

 

A Will is the very beginning of estate planning. Even if it’s an “I Love You” Will that leaves everything to your spouse, it specifies an executor to carry out your wishes and describes how you want the assets distributed.

 

A Trust names a trustee who will carry out the instructions listed in the trust document. A trust keeps the details of your estate settlement private. A Will is filed with the court which makes it a public document that can be seen by anyone.

 

Digital Assets Memorandum. This is usually in a Will document. You specify who you want to have access to your digital assets and accounts like social media and email. Under the Fiduciary Access to Digital Assets Act, “Digital Assets follow according to the Will, but they have to be mentioned in the Will.”

 

A Personal Property Memorandum specifically lists which of your possessions and personal property go to which heirs. For example, “I want my son Steve to have my baseball card collection. I want my daughter Cindy to have the set of Christmas dishes.” The purpose of the Personal Property Memorandum is not to list everything you own, but specific items you want to give to specific people.

 

Having an Asset Inventory will make the job of your executor or trustee much easier. The inventory is a list of all your estate documents, financial accounts, credit cards, property, mortgages—in other words, everything your executor or trustee will need to handle. You include account numbers, contact information, telephone numbers, email addresses, etc. Be sure to tell you executor or trustee where the asset inventory is filed so they can get to it quickly.

 

 

Disclaimer:

This information is presented for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy any investment products. None of the information herein constitutes an investment recommendation, investment advice or an investment outlook. The opinions and conclusions contained in this report are those of the individual expressing those opinions. This information is non-tailored, non-specific information presented without regard for individual investment preferences or risk parameters. Some investments are not suitable for all investors; all investments entail risk and there can be no assurance that any investment strategy will be successful. This information is based on sources believed to be reliable and Alhambra is not responsible for errors, inaccuracies, or omissions of information. For more information contact Alhambra Investments at 1-888-777-0970 or email us at info@alhambrapartners.com.