Four Must-Have Documents

As adults we have certain responsibilities to the people we love.  Unless you’re psychic, you don’t know when something catastrophic will happen.  In this article, I will discuss the four documents you MUST have to ensure your affairs are in order.  It’s longer than most of my posts, but there’s a ton of information you won’t want to miss.  Pull up your chair and sit for a bit.

The “Grown Up” Thing To Do

There was a time when I was single and care-free.  I didn’t answer to anyone and I had nothing to lose – literally.  I certainly didn’t think about what would happen if I died since I was young and would live forever.  Do you remember being that young?

I’m married, now.  We celebrated 40 years this past March, so I would say that definitely puts us in the “adult” category.  We have two sons, a daughter and six awesome grandchildren!  But, responsibility comes with a family, no matter how old you are.

When our first child was born, we decided we needed a will to make sure our child(ren) would be taken care of in case something happened to us.  I didn’t want to spend the money to go to an attorney, so we hand-wrote a will, had some friends sign it as witnesses, and considered ourselves “prepared” for the future.  We figured we were more prepared than most of the people we knew, anyway.

Fast forward

Our children grew up and over the past twenty years or so, we’ve had an uneasy feeling that we weren’t quite as prepared as we probably should be.  So we did the logical thing (I still didn’t want to pay an attorney) and purchased a couple of software packages so we could complete our wills.  But we never really did anything with them after installing the software.  They just took up space on our computer – sitting there, making us feel guilty every time we looked at the folder or the box on the shelf that says “WILL”.

However, several things have happened lately that convinced us it was time to do the right thing and get our affairs in order.  Nothing health related for us . . . thank goodness.  But we’ve seen friends and family having to deal with wills, powers of attorney, and various life-threatening issues.   Our children are in their thirties and forties, and we knew it was time to get it together – to make it easier for the family when we are gone.  

The Four Documents You Need

Which brings me to the reason for this post.  Below, I’ve listed the four documents you need to ensure ALL your affairs are in order.  You can purchase computer software to complete all of these documents if you want to go the quick, easy and cheap way.  However, if you have any complications you may need/want to hire a lawyer.  Complications come in many forms: a blended family (second marriages for you or your spouse), one of you owns a business, or you have a lot of assets, etc.  Is there a cost associated with retaining a lawyer.  Yes.  But, everything will be covered and legit.  Peace of mind.  Priceless.  It should alleviate your fear of leaving a mess for your family.  NOTE:  You must create a copy of each of the four documents in your name and in your spouse’s name.

1. Will

A will, sometimes called a “last will and testament,” is a document that states your final wishes. After you die, your county court will read your will and make sure that your final wishes are carried out.

What a Will Does

According to NOLO.com, most people use a will to leave instructions about what should happen to their property after they die. However, you can also use a will to:

• Name an executor
• Name guardians for children and their property
• Decide how to pay your debts and taxes
• Provide for pets
• Serve as a backup to a living trust

You shouldn’t try to use a will to:

• Put conditions on your gifts. (I give my house to Susan if she finishes college.)
• Leave instructions for final arrangements.
• Leave property for your pet.
• Make arrangements for money or property that will be left another way. (Property in a trust or property for which you’ve named a pay-on-death beneficiary.)

2. Advanced Directives and Living Will

According to the Mayo Clinic, advance directives are written, legal instructions regarding your preferences for medical care if you are unable to make decisions for yourself. Advance directives guide choices for doctors and caregivers if you’re terminally ill, seriously injured, in a coma, in the late stages of dementia or near the end of life.  (A living will is a type of advance directive).

By planning ahead, you can get the medical care you want, avoid unnecessary suffering and relieve caregivers of decision-making burdens during moments of crisis or grief. You also help reduce confusion or disagreement about the choices you would want people to make on your behalf.

Advance directives aren’t just for older adults. Unexpected end-of-life situations can happen at any age, so it’s important for all adults to prepare these documents.

Protecting your advance directives

Review your advance directives with your doctor and your health care agent to be sure you have filled out forms correctly. When you have completed your documents, you need to do the following:

• Keep the originals in a safe but easily accessible place.
• Give a copy to your doctor.
• Give a copy to your health care agent and any alternate agents.
• Keep a record of who has your advance directives.
• Talk to family members and other important people in your life about your advance directives and your health care wishes.
• Carry a wallet-sized card that indicates you have advance directives, identifies your health care agent, and states where a copy of your directives can be found.
• Keep a copy with you when you are traveling.

Reviewing and changing advance directives

You can change your directives at any time. If you want to make changes, you must create a new form, distribute new copies and destroy all old copies. Specific requirements for changing directives may vary by state.

You should discuss changes with your primary care doctor and make sure a new directive replaces an old directive in your medical file. New directives must also be added to medical charts in a hospital or nursing home. Also, talk to your health care agent, family and friends about changes you have made.

You should consider reviewing your directives and creating new ones in the following situations:

• New diagnosis. A diagnosis of a disease that is terminal or that significantly alters your life may lead you to make changes in your living will. Discuss with your doctor the kind of treatment and care decisions that might be made during the expected course of the disease.
• Change of marital status. When you marry, divorce, become separated or are widowed, you may need to select a new health care agent.
• Change in wishes. Over time your thoughts about end-of-life care may change. Review your directives from time to time to be sure they reflect your current values and wishes.

Living will

A living will is a type of advance directive.  It is a written, legal document that spells out medical treatments you would and would not want to be used to keep you alive, as well as other decisions such as pain management or organ donation.

In determining your wishes, think about your values, such as the importance to you of being independent and self-sufficient, and what you feel would make your life not worth living. Would you want treatment to extend life in any situation? Would you want treatment only if a cure is possible?

Talk to your doctor

You need to talk with your doctor regarding each of the following, and decide if you would want the treatments and for how long.

• Resuscitation restarts the heart when it has stopped beating. Do you want to be resuscitated by cardiopulmonary resuscitation (CPR)?
• Mechanical ventilation takes over your breathing if you’re unable to do so.
• Tube feeding supplies the body with nutrients and fluids intravenously or via a tube in the stomach.
• Dialysis removes waste from your blood and manages fluid levels if your kidneys no longer function.
• Antibiotics or antiviral medications can be used to treat many infections. If you were near the end of life, would you want infections to be treated aggressively or would you rather let infections run their course?
• Comfort care (palliative care) includes any number of interventions that may be used to keep you comfortable and manage pain, while abiding by your other treatment wishes. This may include being allowed to die at home, getting pain medications, being fed ice chips to soothe dryness, and avoiding invasive tests or treatments.
• Organ and tissue donations for transplantation can be specified in your living will. If your organs are removed for donation, you will be kept on life-sustaining treatment temporarily until the procedure is complete.
• Donating your body for scientific study also can be specified. Contact a local medical school, university or donation program for information on how to register for a planned donation for research.

3. Power of Attorney

LegalZoom defines Power of Attorney (POA) as a document that allows you to appoint a person or organization to manage your affairs if you become unable to do so. However, all POAs are not created equal.  Each type gives your attorney-in-fact (the person who will be making decisions on your behalf) a different level of control.

General Power of Attorney

A general power of attorney gives broad powers to a person or organization (known as an agent or attorney-in-fact) to act in your behalf. These powers include handling financial and business transactions, buying life insurance, settling claims, operating business interests, making gifts, and employing professional help. General power of attorney is an effective tool if you will be out of the country and need someone to handle certain matters, or when you are physically or mentally incapable of managing your affairs. A general power of attorney is often included in an estate plan to make sure someone can handle financial matters.

Special Power of Attorney

You can specify exactly what powers an agent may exercise by signing a special power of attorney. This is often used when one cannot handle certain affairs due to other commitments or health reasons. Selling property (personal and real), managing real estate, collecting debts, and handling business transactions are some of the common matters specified in a special power of attorney document.

Durable Power of Attorney

Suppose you become mentally incompetent due to illness or accident while you have a power of attorney in effect. Will the document remain valid? To safeguard against any problems, you can sign a durable power of attorney. This is simply a general, special, or health care POA that has a durability provision to keep the current power of attorney in effect.

You might also sign a durable power of attorney to prepare for the possibility that you may become mentally incompetent due to illness or injury. Specify in the power of attorney that it cannot go into effect until a doctor certifies you as mentally incompetent. You may name a specific doctor who you wish to determine your competency, or require that two licensed physicians agree on your mental state.

And now, a quick test:

Do any of the following people need to sign a power of attorney?

• Mr. Jones lives alone, has no close family, and is scheduled for major surgery in a few weeks.
• Ms. Smith has been diagnosed with Lou Gehrig’s disease.
• Mr. and Mrs. Adams will be out of the country for the next 6 months but have a house they need to sell.
• Ms. Davis is single, runs a successful business, and has no medical or economic concerns.

The answer is yes. They all do.

SPECIAL NOTE:

A power of attorney is valid only if you are mentally competent when you sign it and, in some cases, incompetent when it goes into effect. If you think your mental capability may be questioned, have a doctor verify it in writing. If your power of attorney doesn’t specify requirements for determining mental competency, your agent (whoever is named in your POA) will still need a written doctor’s confirmation of your incompetence in order to do business on your behalf. A court may even be required to decide the competency issue in some circumstances.

4. Health Care Power of Attorney

Mayo Clinic defines a health care power of attorney as a type of advance directive in which you name a person to make decisions for you when you are unable to do so. In some states this directive may also be called a durable power of attorney for health care or a health care proxy.

The person you name may be a spouse, other family member, friend or member of a faith community. You may also choose one or more alternates in case the person you chose is unable to fulfill his or her role.

Choosing a health care agent

Choosing a person to act as your health care agent is important. You can’t anticipate all situations, so take care that you choose someone you trust and who meets the following criteria:

• Meets your state’s requirements for a health care agent
• Is not your doctor or a part of your medical care team
• Is willing and able to discuss medical care and end-of-life issues with you
• Will make decisions that adhere to your wishes and values
• You trust to be your advocate if there are disagreements about your care

Next Steps

In case you’re wondering, we did get all our documents created – and yes a lawyer completed them.  We felt our situation was a bit complex in some aspects.  We also went one step farther and had an estate plan done for our family.  That will be the subject of a follow-up post.

Your next steps:

• Take inventory of your legal documents.  Do you have the four necessary documents created?  One for each of you?
• Store your documents in a safe or safety deposit box – someplace where you could get to them if needed.
• Let your children / heirs know where the documents are located and how they can access them if needed.
• Review your documents periodically – about every two years – to determine if anything has hanged.

Where are you in this process?  Have you completed your four documents?  Did you store them in a safe place?  Leave me a message below and let me know where you are in your process.