Estate planning doesn't have to be difficult or only for the rich and financially savvy person. A basic estate plan allows you to plan for a day when you can't make decisions on your own and decide who gets your assets upon your death. The plan usually includes the following documents:
• Durable Power of Attorney - Allows you to designate another person as "agent" to make a variety of decisions on your behalf , usually involving finance and business transactions. The durable power of attorney can be combined with the medical power of attorney (see below).
• Special Medical Power of Attorney (also known as a "Health Care Proxy') - Allows you to designate another person who can give consent to medical procedures. The document can be effective whether or not a person's condition is terminal and irreversible, which is required for the Living Will to become effective (see below)
• Living Will - Allows you to describe in advance what treatment options you authorize in the event you should have a terminal and irreversible condition. For example, you may declare that you want doctors to withdraw or withhold life-sustaining procedures, such as artificial means of respiration.
• Will - Allows you to designate who gets your assets upon your death. If you have considerable assets, say over $2 million dollars, you may also use your will to help plan for the Federal Estate Tax. The will might also designate a guardian for your minor children.
It is sometimes helpful to consider these documents as part of a continuum. The Durable Power of Attorney/Medical Power of Attorney is typically effective immediately upon you signing it. Next, in the event of a terminal condition, the Living Will comes into play. Finally, your Will directs who gets your assets upon your death.
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