Most people see estate planning as a way of determining who will receive your possessions when you die. While this is a crucial thing to cover, an estate plan can and should do much more
Here are three goals that you should consider using your estate plan to achieve:
1. To identify a guardian for your kids
Children generally outlive their parents, but sometimes this does not happen. If you were to die before your children turned 18, someone would have to take responsibility for them until they do turn 18. That person is known as a guardian.
It’s a massive task, so think hard about who you pick and make sure they are willing to take on the role. If they are, then document your choice in your estate plan.
2. To help doctors understand your treatment wishes
If you were to have a terrible accident or fall severely ill, what would you want the doctors to do? And what would you not want them to do? Some people do not want to receive donor organs. Others do not want to be kept alive artificially. Whatever your preferences, note them in an advance healthcare directive and let someone know where it is so doctors can see what your wishes are if your condition means you cannot tell them directly.
3. To have someone act on your behalf
You could also name a healthcare power of attorney to speak to the doctors on your behalf. You could leave it all to them, or just have them cover any situations you have not covered in your advance healthcare directive.
You can also name a power of attorney to cover financial and legal matters for you. For example, to write a check from your account to pay the hospital you are unconscious in. Or to sell your house to fund your move to a nursing home. You can choose how far someone’s power of attorney reaches, when it comes into play and when it ends.
Learning more about how to document these and other wishes in your estate plan can help you draft a plan that suits your particular needs.
