What Documents Make Up an Estate Plan?
When most people think of estate planning, they immediately think of a will, but a comprehensive estate plan includes much more than just what happens after you pass away. Proper planning protects not only your assets but also your health, your loved ones, and your wishes during times of incapacity or emergency.
Below is a breakdown of the essential documents that make up a complete estate plan and how each one serves a unique purpose:
1. Last Will and Testament
The will is the cornerstone of your estate plan. It outlines how you want your property to be distributed after your death and allows you to name guardians for your minor children. It also allows you to appoint a trusted individual, known as the executor, to manage and settle your estate. If you don’t have a will, the state will distribute your assets according to intestate succession laws, which may not reflect your personal wishes or family dynamics.
2. Health Care Directives (Living Will)
A living will or advance health care directive spells out your preferences for end-of-life care. This can include decisions about life support, resuscitation, and other critical medical treatments if you are permanently unconscious or terminally ill and unable to communicate.
3. Healthcare Power of Attorney (POA)
This document designates someone you trust to make medical decisions on your behalf if you become incapacitated. The Healthcare POA covers a broader range of health care situations than the living will and it is only effective while you are incapacitated.
4. Durable Financial Power of Attorney (POA)
A durable financial power of attorney (POA) grants a trusted individual the authority to manage your financial and legal affairs. This can include tasks like paying bills, managing investments, handling real estate transactions, or dealing with insurance matters. It can be drafted to become effective only if you become incapacitated, or immediately upon signing, which some spouses prefer for convenience.
5. Limited Power of Attorney
A limited power of attorney (POA) gives someone authority to act on your behalf, but only in specific situations or for a limited period, such as signing documents while you’re traveling, handling a single transaction, or managing a particular account. It’s a flexible tool for delegating authority without giving up full control. Limited POAs can also be used to give trusted individuals the authority to make decisions for your minor children if you become incapacitated, ensuring someone you trust can care for them until a long-term plan is in place.
6. HIPAA Authorization
Due to privacy laws, even your closest family members may not be able to access your medical records without your permission. A HIPAA release gives healthcare providers your permission to release to the people you name, such as your health care agent, your medical information when necessary to make informed decisions about your care.
7. Letter of Instruction
Unlike the legal documents listed above, a letter of instruction isn’t legally binding, but it’s incredibly helpful. This document provides personal guidance to your loved ones, such as the location of important documents, funeral preferences, digital account logins, and messages to family members. It helps ease the burden during a difficult time.
Why a Complete Plan Matters
Each of these documents plays a different role in protecting your wishes, your family, and your peace of mind. Together, they form a strong foundation that ensures you’re covered, whether you’re facing a medical crisis or managing your legacy.
If you’re missing any of these pieces, now is the perfect time to talk with an estate planning attorney and put your full plan in place. Have questions about creating or updating your estate plan? Contact us today to schedule a consultation.
