Estate Planning Checklist

What documents do you need in a basic estate plan?

A basic estate plan should, at a minimum, contain four documents:

1. A will
2. A power of attorney also known as a durable power of attorney
3. A medical power of attorney
4. A physician’s directive, also known as a living will.

Each of these documents is necessary for a good estate plan and involves decisions to be made by the person for whom the estate plan is created. A closer look at each of these is necessary to make these decisions:

1. The will. As most people know, the will is the document that states what you want to do with your estate regarding bequests to family and friends. When you have an attorney draw up your will, he will ask you the following questions:

a. Beneficiaries — the list of people who will receive your estate assets and property.

b. Specific bequests — most wills state that all their property will go to a person or persons. You may also want to give specific bequests to certain persons and your lawyer will put these bequests in your will.

c. Choice of executor — The executor is the person who has the responsibility to hire an attorney to probate your will and distribute the assets of your estate according to the terms of your will. The executor should be eighteen or older, have no felonies or crimes of moral turpitude on his or her record. The executor should have no incapacities such as mental incompetency that would keep him or her from performing the duties of the executor.

d. Minor’s trusts — if there is a possibility that one or more of the beneficiaries of your estate would be a minor, then you need a minor trust in the will.

2. Power of attorney also known as a Durable Power of Attorney. A power of attorney gives an agent, designated by you, to act for you in legal and financial matters. Most estate plans have a power of attorney that can only be activated if you are incapacitated as determined by a doctor. The power of attorney will require you to make the following choices, among others:

a. Agents — the power of attorney should list the main agent to take care of your financial needs, including the address and phone number. Most Powers of attorney list alternate agents.

b. Powers granted to the agent — Most powers of attorney have a list of powers such as the power to make real estate transactions, control bank accounts.

c. Compensation and right to reimbursement. The power of attorney will state whether you want the agent to receive compensation and reimbursement of expenses. You can also choose to have the agent receive or no compensation and only reimbursement of expenses.

d. Number of agents needed for any transaction.

3. Medical power of attorney — This power of attorney gives your agent the power to make medical care decisions for you if you are incapacitate d or incapable of making your wishes known to your medical providers. It does not cover situations in which the person is terminal.

4. Physician’s directive or living will. If a physician determines you will not live longer than six months despite available medical treatment and care, then this document states what medical care you want or do not want. It is used when you are incapacitated and cannot communicate your wishes to your medical providers.

There are other documents that are available in your estate plan and these should be discussed with your attorney. For a free consultation to discuss what documents you need, please call this law office.