The Biggest Estate Planning Mistake People Make

There are a few key documents needed for near-complete estate planning. First, the Advanced Health Care Directive, or Medical Power of Attorney, designates someone to make medical decisions for you if become injured or too sick to make these decisions for yourself. The individual chosen through this document is referred to as your health care agent. Next, a Living Will provides you the ability to specifically dictate what types of medical treatment you may or may not want in an emergency or near-death situation. This document will allow the previously designated health care agent to act in your stead to make these decisions on your behalf.

Third, a Durable Power of Attorney provides for some trusted individual to make decisions on your behalf in case you become incapacitated. This person, your agent, may pay bills, write checks, make deposits, and take money from checking accounts. Finally, a Revocable Living Trust may be set up to avoid some issues inherent with the durable power of attorney. As settlor, you may place assets into a trust and act as both the trustee and the beneficiary. Upon incapacity, a named successor-trustee may take the reins and run the trust for your benefit until recovery or death.

Each of these steps can be extremely complicated and legal assistance should be sought to accomplish these estate-planning necessities.

See Brad Wiewel, The Biggest Estate Planning Mistake People Make, Forbes, August 16, 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.