What Documents do I need to prepare?
A woman named Leticia recently came into my office[1] . She and husband are expecting their third child and they know they need to have a plan. Leticia wanted to keep her estate plans simple. As a working (and expectant) mom, she didn’t have a lot of time to mull a deep investment strategy or do anything fancy. Plus, she and her husband, Jon, didn’t have a lot yet in savings. Leticia’s aim is to get the minimum done before her third child is born and then figure out a more detailed strategy later, when she has breathing room.
As a starting point, I would tell Leticia to consider creating the following documents:
· Advanced healthcare directive. This provides written guidance for Jon (and for her doctors) about what to do if she became incapacitated, including what treatments she would like and which ones she would decline.
· Durable power of attorney. This document would allow Jon (or her mother) to make legal decisions for her, if she became incapacitated.
· HIPAA release form. HIPAA is a law designed to protect the privacy of patients. It can be a double-edged sword, because it can prevent people like Jon or Leticia’s mother from accessing her medical records and treatment information without having to go through an elaborate process. The HIPAA release bypasses that potential mess.
· Will or revocable living trust. This document determines how Leticia wants her assets allocated after she dies and provides instructions for her heirs. Leticia might also want to include a document detailing what she wants done with her computer files and her popular blog as well.
(Note: a will is just a statement of intention to the court. It suggests where you want your assets to go and who should be the executor. But a judge must say the will is valid before it goes into effect, legally speaking.)
With that basic preparation done, Leticia can feel more secure, although she’d likely benefit from a more detailed strategy and a regular reassessment of her financial world and priorities.