Financial Documents
| Joint Ownership | Durable Power of Attorney | Living Trust | |
|---|---|---|---|
| What does it do? | Enables you to own property jointly with another person | Authorizes someone to handle legal and financial decisions if you become incapacitated | Holds your belongings until your death |
| Can it authorize someone to handle your financial affairs if you are unable to communicate? | Generally, no |  | Generally, no |
| Can it specify how you want your belongings transferred after your death? | But only those belongings owned jointly | Generally, no | |
| Is it private? | | | |
| When does it go into effect? | As soon as joint ownership is recorded | Either immediately or upon a specific trigger event (such as your incapacity) | When the document is signed and the trust is funded |
| Does it require court involvement? | No | No | No |
Fast Fact: Without a Will. About 66% of Americans admit they don’t have a will.
Source: Everplans, September 16, 2015
Healthcare Documents
| Living Will | Power of Attorney | Power of Attorney for Healthcare | |
|---|---|---|---|
| What does it do? | Provides specific instructions about medical care and artificial life support | Authorizes someone to handle legal and financial decisions on your behalf | Authorizes someone to make healthcare decisions on your behalf |
| Can it outline your medical wishes if you are unable to communicate? | | Generally, no | Not generally, but it does authorize someone to make medical decisions on your behalf |
| Can it authorize someone to handle your financial affairs if you are unable to communicate? | Generally, no | | Generally, no |
| Duration | No expiration; can be revised or revoked at any time | Depends on specifics in the document; can be revised or revoked at any time | Depends on specifics in the document; can be revoked or revised at any time |
| Is it private? | | | |
| When does it go into effect? | Upon your incapacity | Either immediately or upon a specific trigger event (such as your incapacity) | Either immediately or upon a specific trigger event (such as your incapacity) |
Tip: Delegation. When choosing someone to make healthcare decisions on your behalf, consider naming an individual who is trustworthy, level-headed in a crisis, and can make themselves available on short notice.