Broker Check
Critical Estate Documents

Critical Estate Documents

October 17, 2017

Financial Documents

 Joint OwnershipDurable Power of AttorneyLiving Trust
What does it do?Enables you to own property jointly with another personAuthorizes someone to handle legal and financial decisions if you become incapacitatedHolds your belongings until your death
Can it authorize someone to handle your financial affairs if you are unable to communicate?Generally, nocheckGenerally, no
Can it specify how you want your belongings transferred after your death?check
But only those belongings owned jointly
Generally, nocheck
Is it private?checkcheckcheck
When does it go into effect?As soon as joint ownership is recordedEither 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?NoNoNo

Fast Fact: Without a Will. About 66% of Americans admit they don’t have a will.
Source: Everplans, September 16, 2015

Healthcare Documents

 Living WillPower of AttorneyPower of Attorney for Healthcare
What does it do?Provides specific instructions about medical care and artificial life supportAuthorizes someone to handle legal and financial decisions on your behalfAuthorizes someone to make healthcare decisions on your behalf
Can it outline your medical wishes if you are unable to communicate?checkGenerally, noNot 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, nocheckGenerally, no
DurationNo expiration; can be revised or revoked at any timeDepends on specifics in the document; can be revised or revoked at any timeDepends on specifics in the document; can be revoked or revised at any time
Is it private?checkcheckcheck
When does it go into effect?Upon your incapacityEither 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.