Failing To Plan Is Planning To Fail!
Planning is often neglected due to lack of time and other competing interests.
The average person spends more time planning for a vacation than they do planning for their retirement!
Why is planning important? The cost of not planning for the future can be disastrous. Failing to plan is planning to fail. Tax laws change constantly. The stock market is always going up and down. Your personal family situation is unique. You are the only person who can make the decision on where you would like your legacy to go. As a member of the National Academy of Elder Law Attorneys, it is my mission to educate the public on the need for proper estate planning. I recommend that everyone have the following four documents:
1. Durable Power of Attorney for Healthcare
This document permits you to designate a spouse, family member or friend to be a health care decision maker on your behalf. It goes into effect when you become disabled and unable to make decisions for yourself. A loved one can act on your behalf as result of your prior planning.
2. Living Will
A living will is also known as an Advance Directive for Health Care. It is recognized in Pennsylvania as giving you the right to refuse medical treatment if you are suffering from an incurable and terminal illness or are in a persistent vegetative state. You designate a spouse, family member or friend to inform the health care provider of your intentions. It is possible to refuse medical treatment that would only prolong artificially the dying process. It works in together with the POA for Healthcare. The living will only covers a very narrow set of circumstances.
3. Last Will and Testament
A will is defined in Blackstone's Commentaries as "the legal declaration of a man's intentions, which he wills to be performed after his death." A simpler way of expressing that is by saying a will is a written document that leaves what you want to whomever you want. If you do not leave written instructions on how you would like your legacy to be passed on the government will do it for you. A will permits you to express your final intentions to your friends and family.
4. General Durable Power of Attorney
A POA permits you to designate an agent to act on your behalf should you become incapacitated and incapable of making decisions for yourself. By taking the time and preparing a POA while you are healthy and capable of doing so you can avoid the need of a Guardianship proceeding. If you do not take the time to prepare a POA you may subject your spouse or family to unnecessary heartache and expense. A POA permits you to delegate decision making about your financial and legal affairs should you no longer be able to do so. If you do not prepare a POA and become incapacitated the only way someone can act on your behalf is if they obtain a court order via a Guardianship proceeding permitting them to do so. This process takes time and money and can be avoided completely by planning ahead of time.
These four documents will insure that your legacy goes to your heirs of choice and that if you should become incapacitated your designated agent will be able to handle your affairs. These documents are the foundation of a basic estate plan. You have worked hard for your money, make sure it ends up in the right place, with the people you love.
Written by: James J. Ruggiero, Jr., Esq.