In our previous article we discussed what can go wrong if you don’t update your will. In this article we look at another major estate planning mistake. If you think that having a will means that your estate planning is complete, then you are wrong.
On the image below you can see what is the difference between estate planning and standard will. For even more details, you can check out our article (Standard Will vs. Estate Planning : What is the difference?)
You can’t rely solely on a will
Unfortunately, the things are not that simple when it comes to getting your affairs in order. You need to consider different aspects that are not covered in your will. There are few key documents you need to take care of as well. In this article we will focus on two of them – power of attorney and advance medical directive.
Power of attorney
A power of attorney (POA) is a document in which you appoint a person or organization to manage your affairs if you become unable to do so. For example if you have been diagnosed with any serious disease and you are not able to manage your affairs, then the appointed person will do in instead. There are different types of POA which we will discuss in one of our future articles.
Advance medical directive
The advance medical directive is a term that refers to several different documents, but the most common one is the living will.
According to the AARP “A living will alerts medical professionals and your family to the treatments you want to receive or refuse. In most states this document only goes into effect if you meet specific medical criteria and are unable to make decisions”
If you don’t have a living will the doctors might take decisions that you wouldn’t agree on.
What can go wrong?
If you miss taking care of these documents, you would not be able to decides who to act for you. The court will appoint someone, that you wouldn’t have selected.
Don`t forget to safely store all of your estate planning documents in AfterVault.com, so your family can find them when they need it the most.