Even though some believe estate planning only suits the elderly or the rich, anyone can benefit from estate planning. However, the best estate planning tools or systems depend on your circumstances. Below are the basic estate planning tools a young adult should consider.
Last Will and Testament
Your last will and testament specify your wishes after death. People primarily use the last will and testament to distribute wealth, but you can use it to convey other wishes. For example, the document may help you specify:
- Who should care for your children
- Who should have your personal belongings
- Your funeral wishes
- What should happen to your online accounts or pages, such as your social media accounts
Many people have opinions on these and other issues and can benefit from having a last will and testament.
Power Of Attorney
A durable power of attorney allows another person to act on your behalf if you cannot do so. The durable financial power of attorney gives another person the power to handle your financial issues. For example, the person may determine which assets to use for your medical bills.
The healthcare power of attorney empowers another with the authority to control your medical issues. For example, the person may determine which medical treatments you should have and which ones to avoid.
Living Will
The person holding your healthcare power of attorney should know your medical or health wishes. Otherwise, they won't know how to act in specific situations. You need a living will or advanced healthcare directive to convey your medical wishes. For example, you can avoid certain experimental treatments using your living will.
HIPAA Release
The Health Insurance Portability and Accountability Act (HIPAA) determines who can see each patient's sensitive information. Essentially, HIPAA ensures third parties do not receive your medical information without your authority.
Unfortunately, the protection might be counterproductive if another person needs to see your medical information to decide your treatment if you cannot make those decisions or give the authorization. Create a HIPAA release as part of your estate planning efforts to deal with the problems.
The HIPAA release form allows the designated person, such as the person holding your durable healthcare power of attorney, to receive your medical records. That way, the designated person can make an informed decision on your medical treatment.
Hopefully, you have used the best estate planning tools to document your wishes and preserve your loved one's future. If unsure, consult an estate planning attorney to assess your circumstances or needs and help you plan your estate, or visit a website like https://wolfleyandwolfley.com/.
Share
