Why are Powers of Attorney so Important?

We often receive phone calls inquiring about updating their will or trust.  While undoubtedly important, these documents generally only address one event, namely what happens to your assets when you pass away.

Equally important, but often overlooked, is protecting yourself and your family from financial and health care emergencies during your lifetime.  Properly drafted, Powers of Attorney can safeguard you from emergencies that may strike when you least expect it.

 

Everyone over 18 should complete both a Health Care and Financial Power of Attorney (P.O.A.).  While surprising to most people, the Wisconsin Statutes do not make a parent, a spouse, a relative or family member the default decision maker for anyone over 18.  The only alternative is oftentimes a costly and stressful legal proceeding involving the courts.

Each Power of Attorney document, in effect, nominates another person (your "agent") to legally make decisions for you.

 

A Health Care Power of Attorney allows you to designate an agent to discuss your condition with your doctor and make medical decisions according to your wishes when you are unable to communicate those desires.

A Financial Power of Attorney names an agent who can make financial and other non-medical decisions.  An agent’s authority can be immediate at the time of signing the document or it can take effect only in the event of "incapacity"–that is, when you are unable to act for yourself.

Undoubtedly, the role of agent is an important responsibility that should not be lightly considered.  So, who should you choose as your agent?

Naming an individual who shares your same values and beliefs can help ensure your wishes are followed.  We also suggest discussing with your agent any specific health or financial priorities and wishes you may have.  This conversation helps to avoid future questions about your goals and objectives when your agent is called upon to act.

Both a Health Care P.O.A. and a Financial P.O.A. can eliminate future conflict by laying out your wishes and designating someone to make decisions when you cannot.  These should be a key part of your estate plan.

Make 2017 the Year You Complete Your Estate Plan!

The start of the New Year almost always brings with it new goals and resolutions.  So, what is the best way to meet these goals head-on and successfully complete them?  Oftentimes, the key is in not taking one giant leap, but small steps, providing us the best possible chance to succeed!

 

With estate planning, adopt a similar approach.  Taking manageable steps can make all the difference between completing your estate plan and giving yourself and your family peace of mind, and putting it off for another year, potentially putting your loved ones at risk in the event something happens to you.  Here are just a few benefits of putting an estate plan in place:

 

Nominate an individual you trust to make health care decisions:  Nominating a trusted individual who knows your health care wishes can ensure your desires are followed.  Without planning ahead, your family is likely to have to go to Court before making health care decisions on your behalf, incurring additional money and time during an already stressful period.

 

Name someone to manage your financial affairs if you are unable to do so:  Executing a Financial Power of Attorney ensures your financial affairs continue seamlessly during your life and any legal decisions can be made on your behalf.  In the absence of a Financial Power of Attorney, no one can legally make these decisions for you, whether that person is a spouse, a child, or a close friend.

 

Provide for your children and loved ones from future potential creditors, predators, and unnecessary taxes:  Protecting your loved ones from others and sometimes themselves, can ensure your desires are followed.  A proper plan promotes family harmony upon your passing by making the process proceed smoothly without undue stress and delays.

 

Protect your assets, both during your lifetime and after:  Planning ahead can make all the difference in protecting your most cherished assets for yourself and your family members.  Advanced planning options to protect assets in the event of a need for advanced health care expenses may be warranted to protect your assets.

 

To take the first step toward giving yourself peace of mind and a lasting legacy come to our free educational seminar being held in the Village of Hilbert Community Room on Saturday, February 4th at 10:00 AM.  We will be providing an overview of how a properly drafted comprehensive estate plan can save your family time, money, and promote harmony among your beneficiaries.  Please call or e-mail our Client Services Director Sandie at sandie@epgwi.com to reserve your spot today!

 

 

For more information about this seminar and our upcoming events, go to www.TheEstatePlanningGroup.com today!

Timing is Everything in Legal Life Planning!

With Christmas fast approaching and the New Year practically upon us, discussions of goals and resolutions for the upcoming year frequently come up.  Invariably, when legal life planning is discussed, many times a "We'll do that next year" approach is adopted.

The legal life planning process, though, can only fully use all available tools if sufficient time exists.  Adequate preparation can mean the difference between having options and protecting your assets versus facing additional expenses and headaches down the road.

One of the best ways to plan ahead is to formally nominate someone to make health care and financial decisions for you when you are unable to communicate those desires.  Failing to execute Health Care and Financial Power of Attorney documents can result in your loved ones being forced to go to court, spending time and oftentimes thousands of dollars, to gain such authority.

Planning ahead about how best to pass your assets can also help ensure a smooth process for your chosen beneficiaries, while minimizing administrative costs.  Wills and other non-probate tools, like a payable-on-death (POD) designation or a life estate deed are often used, but other legal options, like a revocable trust, may deserve consideration too.

When attempting to protect assets from a future need for a nursing home stay and qualify for the government program that pays for such care ("Medicaid"), planning ahead is especially critical.

If you have gifted or sold any assets for less than fair market value within 5 years of trying to qualify, the Medicaid system requires the difference to be repaid before you qualify (the "5-year look back period").  Putting in place legal tools now to safeguard those assets before a need for nursing home care arises can avoid this issue.

Timing is everything in legal life planning!  Protections to put in place now to protect yourself and your loved ones will be discussed at our first seminar of the new year on Saturday, January 14^th at 10:30 a.m.  This seminar will be held at the Weyers-Hilliard Library in Green Bay.  More details can be found here:  http://www.theestateplanninggroup.com/event/life-and-legacy-planning-weyers-hilliard/

From all of us at Davidson Law Office and The Estate Planning Group, we wish you a Merry Christmas and a safe and happy New Year!