Estate Planning – A Checklist of the Basics
There are many basics involved in estate planning. Some basic steps are naming a power of attorney, choosing an executor, and selecting a healthcare proxy. In addition, it is essential to plan and determine your family’s needs in case of death. For example, if you are married with a dual income, you should consider purchasing life insurance for your children and grandchildren. In addition, life insurance may be a good idea if you have a family with special needs or college tuition bills.
Designating a Power of Attorney
If you have an illness, disability, or death, you can designate a POA to take care of your financial and health affairs. POAs are legal documents that enable the person designated to act in your place, and their duties can vary. Some responsibilities include paying bills, planning Medicaid, handling banking transactions, real estate decisions, and healthcare billing. A POA can benefit people who need to decide on their health.
Creating a power of attorney requires some careful planning. First, you must choose a trusted professional such as a New Smyrna Beach Estate Planning Attorney. Once you’ve chosen your lawyers, decide precisely what you want them to do on your behalf. For example, you can designate a POA that comes into effect only when you cannot make financial decisions, or you can name multiple agents to handle your finances. Also, it’s essential to customize the document to suit your specific needs. Remember, your power of attorney will need to be recorded with the deed to your property.
Choosing an Executor
The choice of an executor for your estate is an important one. The person selected to do the job should be someone you know and trust. They should be organized, responsible, and intelligent. In addition, they should have the necessary experience to manage the estate. An executor’s role is considered a fiduciary, meaning that the person has to follow high ethical standards. However, it would help if you also kept in mind that the executor should be willing to communicate with family and friends.
In estate planning, naming a child as executor is not mandatory. However, living with the parent may pose difficulties if the child is living with the parent. One reason may be that the child is not financially stable. Another reason could be that the child is living with the parents, making it difficult to find a suitable house. The only way to solve this issue is to choose an executor who can handle the estate reasonably and efficiently.
Although there are many professional executors available, these services can be expensive. Instead, you can also choose a family member or close friend. When choosing an executor, the main thing to remember is that they should be trustworthy and committed enough to fulfill the duties. The executor should be able to make reasonable decisions and follow the instructions in the will. It is essential to choose someone who has good communication skills, is willing to listen to family and friends, and has good judgment.
Choosing a Healthcare Proxy
Choosing a healthcare proxy is a crucial part of an estate plan. While this person will be responsible for making healthcare decisions on your behalf, determining someone who will remain a solid and impartial voice in your case is also essential. A healthcare proxy should be able to release funds and communicate with you freely and honestly to make the best decisions for yourself and your family. This person should also maintain a professional relationship with the health care provider.
Choosing a healthcare proxy can be a difficult decision, but your loved ones need to be able to trust them. While it may be tempting to choose your best friend, it’s better to choose someone you trust. Your healthcare proxy will advocate for you in the event you can’t. Choosing someone who shares your values and beliefs is critical. This will help ensure that your wishes are carried out.
In addition to being essential for your family’s peace of mind, a health care proxy can protect your loved ones’ time and resources when making health care decisions. If you cannot make medical decisions independently, your healthcare proxy can act as your representative and help you make the right decisions. Choosing a healthcare surrogate is an essential part of estate planning. Preparing for an accident, illness, or death is crucial so your family can make decisions based on your values.