You may be going through a major life transition and wondering, “What comes after the dust settles?” After you’ve taken a moment to breathe, your next step should be creating or updating your estate plan to reflect your new future. Simple estate plans consist of a Living Will, a Power of Attorney, and a Last Will and Testament. These three documents tell your loved ones and the courts how your life and assets should be handled.
A Living Will provides instructions to your doctors and other individuals regarding the end-of-life measures or medical care you wish to receive if you are incapacitated or otherwise unable to communicate those wishes. Your options range from providing only comfort care to providing all life sustaining measures possible. The Living Will provides your loved ones and health care providers with some relief from the pressure of making these decisions for you.
The Power of Attorney document gives another individual the ability to make decisions on your behalf if you are unable. A Power of Attorney document is often used in the event of your incapacity and gives the individual you name as your “Attorney-in-Fact” the ability to make decisions on your behalf regarding your finances, medical care, and other matters. You may name one person or multiple people as your “Attorneys-In-Fact” and you control the type of power you give them. This document can be limited in time or can be effective as soon as it is signed.
Your Last Will and Testament designates how your assets will be administered after your death. Leaving behind a Will gives you control over your estate rather than allowing the courts and statutes to create an estate plan for you. Your Will designates a Personal Representative, the individual that will handle the affairs of your estate after your death, and may also designate the guardians of your minor children or other dependents. You also have the power to leave specific instructions about how your assets are divided, such as leaving special or sentimental gifts to certain individuals.
The most important thing to consider about each of these documents is how they will be impacted after a major life transition. If you’ve gone through a divorce, is your ex-spouse still listed as your Personal Representative or Attorney-in-Fact? If you’ve had more children or have adopted, have you updated your Will to reflect any changes to your estate plan? Have you experienced the loss of a loved one? It’s important to consider whether your Estate Planning documents still reflect your wishes and that the individuals you’ve named as your Attorney-In-Fact or Personal Representative are still able and willing to perform those roles.
As a rule of thumb, we recommend reviewing your estate plan every three years to determine whether updates are necessary. If you’ve undergone a major transition, you may need to review your estate plan sooner. McGill Law is here to assist you with any questions you may have to secure your future!