Planning is good. Planning is responsible. Planning is adulting at its finest.
So, let’s plan, shall we?
There are 7 basic estate planning documents that you should have if you live in Texas: a will, Statutory Durable Power of Attorney, Medical Power of Attorney, HIPAA release, Directive to Physicians, Declaration of Guardian, and Designation of Burial Agent.
There is another common document that is not considered basic:
The 7 Basic Documents
1. Will
A will gives your instructions on payment of your debts and division of your assets upon your death. It also names your choice for the independent executor for your estate. A will becomes effective only after you die, and a judge has determined that the will is valid.
2. Statutory Durable Power of Attorney
The Statutory Durable Power of Attorney is the document where you name an agent to handle your financial affairs during your lifetime. Your agent’s authority extends only to those matters that you specifically name. You can choose whether your agent’s authority is immediately effective or is only triggered upon your incapacity. Signing a Statutory Durable Power of Attorney does not diminish your right to continue to handle your own financial affairs.
3. Medical Power of Attorney
The Medical Power of Attorney names an agent to make your medical decisions if you are unable to make them yourself. Signing it does not diminish your right to make your own medical decisions if you have capacity to do so.
4. HIPAA Release
The HIPAA release names the people you have authorized to receive your medical information. It does not, by itself, give anyone authority to make decisions for you.
5. Directive to Physicians
The Directive to Physicians contains your instructions regarding whether you want your life prolonged through artificial means if you have been diagnosed with a terminal illness that is going to lead to your death within 6 months, or an irreversible condition that will lead to your continued decline. The document can be tailored to certain situations or conditions. You can override your written directive at any time. If you are incapacitated and cannot make a decision, then it will be up to the agent you named in your medical power of attorney to make the final call.
6. Declaration of Guardian
The Declaration of Guardian names the people you want to serve as the guardian of your estate and your person in the event you become incapacitated. This document also allows you to prohibit certain people from being appointed as your guardian.
7. Designation of Burial Agent
The Designation of Burial Agent names the people you want to have authority to make the final arrangements for your body. You can describe the arrangements in detail, such as your remains being buried, cremated, or donated. You can also leave instructions for memorial services, post-service gatherings and your obituary.
An Additional Legal Document to Consider
A trust is a set of instructions from you, the grantor, to your trustee, for the benefit of your beneficiaries. A good trust will include directions about investments, duties, powers, and disbursements of the assets funded into the trust.
Trusts come in many types, and each type accomplishes something different. There is no such thing as a “standard” trust.
Do you need a trust? Maybe. The decision should be based on your specific circumstances, and not on the sales pitch you will hear in a “free” dinner seminar.
Hammerle Finley Law Firm Can Help with Legal Estate Planning
Bottom line? Put the basic documents in place, review them annually, and think carefully before you buy a trust. Planning is not only good; it is everything. Schedule a consultation today to discuss your options.
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
