Legal Issues and Estate Planning: Feeling Confident in Life’s Transitions
Planning and considering important life planning documents while you are able is an important task. It’s better to have a strategy than a tragedy…but often we postpone thinking about what might happen when we die or become unable to mange our financial and legal affairs.
Finding an experienced attorney can often be the first step to confidence under stressful circumstances. And don’t forget, if and when you do prepare important legal documents, let someone else know that you have them.
What exactly is a will?
This is the primary place for direction about your property and money when you die. A will can only dispose of property and assets to which the testator (the person making the will is the testator) is entitled. This excludes assets registered in joint tenancy. A will ensures that your wishes are carried out and that your dependants, assets and finances are protected. It also offers you the opportunity to name guardians of children, establish a trust or donate to charity, as well as express wishes in relation to funeral arrangements. Your will also provides the name of an executor, a person or organization which administers your estate according to your wishes.
What happens if you die without a will?
If a person dies without a will, an Administrator is appointed to administer the estate. In this case, the estate is distributed according to a strict statutory scheme of distribution set down by law, and it may or may not reflect whom the deceased wished to benefit from their estate. Administration of an “intestate” (or estate distribution without a will) estate may take longer and incur additional costs.
What is a durable power or an enduring power of attorney?
The durable power of attorney is a formal agreement where a person gives someone else the power to make decisions on his/her behalf if the principal loses the capacity to manage his/her own affairs. An enduring power of attorney allows the person appointed to make financial and personal decisions for you, and you can specify the kinds of decisions to be made and choose someone you trust to carry them out.
This appointed person can pay your bills, manage your finances, and give consent for health care, as well as make lifestyle decisions such as where you live and the type of healthcare you will receive.
