Common Misconceptions About Designating General Power of Attorney

You have probably heard the term “power of attorney” many times. But do you understand what it does (and does not) mean?

Laws differ from state to state, and much of what we hear on the news is about power of attorney cases gone wrong.

Does this mean it is too confusing to understand? Not at all!

What you need is to distinguish the difference between fact and fiction when it comes to a general power of attorney.

In this post, we will debunk five common misconceptions about power of attorney documents.

Myth #1: All Powers Are Equal

Are power of attorney documents one-size-fits-all? Far from it!

Some are “limited,” which means that they are limited to one specific purpose. These purposes might include medical or financial decisions, such as the sale of a property. Others might include a time limit or only go into effect if you are incapacitated (or if you are not).

A general power of attorney may grant the chosen agent full right to make legal, medical, and financial decisions for the individual. It is crucial to select someone who is trustworthy and capable of managing your assets, estate, and health in ways that you would wish.

Myth #2: Internet Forms Are All You Need

There is a whole host of free legal forms on the internet, including power of attorney forms.

All you need to do is print one out and sign it, right? Wrong!

Internet forms may not be specific to your state’s laws, or it may be outdated. It may also grant your agent more, less, or the wrong type of power.

Your best bet is to have a personalized document drafted by a local, knowledgable lawyer.

Myth #3: You Give Up All Rights and Power

Many power of attorney documents do not take effect unless you are incapacitated and unable to make decisions on your own.

Assigning power of attorney does not mean you give up all rights to act in your own behalf. If you still have the ability to make your own decisions, you can, especially if your agent tries to make a decision that is not in your best interest.

Myth #4: You Can Get Power Anytime

This is an important one to take note of. Someone who signs a power of attorney document must do so while he or she is of sound mind.

Power of attorney is something that must be decided and arranged before a person is incapacitated. If you wait until the person is in a coma or develops a cognitive disease like dementia, it will be too late.  

Myth #5: Power Survives Death

A final myth we will address is that a power of attorney document remains in effect after the person dies.

Put simply; this is false. The document serves its purpose only as long as the individual is alive. 

After that, whatever is in the person’s will goes into effect. A power of attorney document does not trump a last will and testament. 

Final Thoughts on General Power of Attorney

Now that we have cleared up some common misconceptions, what is next?

If you and your family need to draft a general power of attorney document, do not go it alone.

personal family lawyer can provide the expert guidance you need to ensure the document is exactly what your family needs. Please contact our office today to discuss your concerns.

  • This field is for validation purposes and should be left unchanged.

Celebrate Your Military Family, Improve Your Military Will

Celebrate Your Military Family By Improving Your Military Will

There’s an old military adage that says, “No good plan survives engagement.” 

While this quote’s timelessness must lend credit to its applicability in battle, it transcends its martial roots and applies equally as well to law.  Especially Estate Law. 

Take for instance the idea of a Last Will and Testament.  A Will is probably the most well known and well-understood items in an estate plan.  The purpose of the Will is to make sure your assets go where you want them to go after you pass away.  It need not be too complicated, and in many cases, Wills have been as simple as notes scratched on a piece of paper from the deathbed of the person writing the Will.  <- We do not advise this, but if it is a bad idea and it works, is it indeed a bad idea?  

Today, and this month, we are celebrating the Month of the Military Kid.  As a law firm, this got us thinking, what can we do to celebrate?

 Share updates and resources, check.  Spread the good word, check.  Educate…  we can do that!  That is what this blog is all about.  Getting good information, usable information, from our brains and into a forum (this forum!) where readers can make informed decisions.  In that spirit, the purpose of this article is to answer for Veterans and those still serving, why their Military Will is not enough protection for their family, and show them how to fix this.  

Your Military Will Just Is Not Enough

It’s not your fault, and it is not a bad start.  But the hard fact is, your military Will is not enough protection for your family.  Here’s why.

As we mentioned above, a Will of any type is designed to designate who will get your assets when you pass.  The process begins with your death and then must go through a legal action known as probate.  Probate is the bane of estate planners for several reasons.  The top of these reasons being time, cost, messiness.

Probate is an Unnecessary Pain

Death is a hurry up and wait process when probate is factored in.  You are scrambling around trying to figure out last arrangements (if you haven’t set up an estate plan ahead of time), trying to figure out the finances of paying for burial or cremation, ceremonies, and getting family and friends together.  Then, you have all the assets of the deceased to figure out what to do with.

Houses, cars – are they owned?  Who has the right to sell them? Trinkets, storage items, family heirlooms, tv’s, jewelry, books, intellectual property, investments…the list is endless.  And it is going to take 6-9 months to figure out who has the right to even make decisions on these assets.  That is 6-9 months to work through probate, assuming the issue of ownership is uncontested!

Let’s set aside the time suck that is probate on Willed assets and work our way through costs.  Get ready to pay up to 10% of the assets of the estate just to transfer them to where they are supposed to go!

If you are keeping track that’s thousands of dollars and 6-9 months so far.  Again, IF the declarations in the Will are uncontestable.  Do you have an ex-wife that owns half your house but your adult kids and your current fiance’ are the ones named to inherit your assets in your military Will?  How’s that going to be settled?  Who is going to help you (or really them) to figure it out?  And how much is it going to cost?

Wills In the Military

Being honest, we are pointing out the drawbacks of Wills because there is another way for young families to prepare for the future. An approach that can release them & you from the turmoil of probate, the financial burden of an unnecessary legal process, and avoid the messiness of contested assets altogether.   So why does the military get service members set up with Wills in the first place?

For one, Wills are relatively straightforward and easy to set up en masse.  Did your command order you and 100 other people to set up your military Will through JAG?  Was it a pre-deployment Will or something set up for family day?  If so, it may be very limited in scope and entirely out of date if any one of a hundred or more things have happened since it was penned.

New kids, new property, new assets, new marriage situations, and more are all reasons to update a Will.  And in reality, updating a Will is not as simple as crossing off an outdated item and adding a new issue.  You are likely going to have to re-write the whole thing.

So, while military Wills get the job done, temporarily.  They do not grow with you and your needs, and if it has been a year or more since you established yours, you need another option.

Another Option – Let’s Talk Total Estate Planning

Wills are a means to an end and can be effective if you use them in the right way.  However they do come with drawbacks, and for a young military family, there are strong reasons to consider other paths for estate planning.  Especially, trusts, powers of attorney, and other options.

Recall from this discussion some of the drawbacks of Wills, and particularly military Wills.  

  • To transfer assets upon death requires probate, which can take 6-9 months;
  • Probate can cost up to 10% of the assets of the deceased;
  • Disputes over the Will can lead to painful situations which are only solved in probate court; and,
  • Wills only cover items and beneficiaries specifically.  Any change to your situation and family might change the whole dynamic of the military Will.  

A trust on the other hand

  • Can transfer assets almost immediately upon death, or even before passing if it is set up to do so. 
  • Will not require anyone to pay lawyers or a probate court.  Once the trust is set up the only cost is modifying it, if necessary.
  • Trustees (recipients of the trust) are decided between you and your estate lawyer when drafting and updating the trust.  It is very clear who your trustee(s) will be and under what conditions they assume control of the trust that your assets have been placed in. 
  • You can set up your trust to be disbursed to certain people in certain circumstances.  If you want your brother to receive part of your assets upon passing but not his spouse, you can make that a condition at any point.  
  • Lastly, a trust is private.  The process of going through probate opens up the details of your assets to the public eye.  Your beneficiaries could have unscrupulous suitors showing up at their door if you have a sizable estate to pass on.  A trust being disbursed to the trustee(s) in the manner you wanted is not handled in the public eye.  

Should You Scrap Your Military Will? 

You already know there are no absolutes in life.  And as we have discussed in this article, this sentiment is true in death too!

Should you scrap your military Will wholesale?  Maybe not.

At the very least, it is a fantastic jumping off point to discuss what else you should be considering or should have already considered.

The good news is that while you are still alive, it is not too late!

We Help Military Families Get Their Estate Plans In Order

  • This field is for validation purposes and should be left unchanged.

Setting up a Durable Power of Attorney in Washington State

Setting up a Durable Power of Attorney in Washington State

Setting up a Durable Power of Attorney in Washington State is pretty straightforward.

In this article is a brief description of what a Durable Power of Attorney actually is, as well as some specific rules that you must follow to set up a durable power of attorney in Washington State.

Durable Power of Attorney (POA) Explained

A durable power of attorney allows you to choose someone to handle your medical and financial needs.  It remains valid and in effect, if you become incapacitated and ends when you die or otherwise end the POA.  There are two types of durable power of attorneys.

Durable Power of Attorney for healthcare: The durable power of attorney for health care gives your designated agent the authority to make healthcare decisions on your behalf.

Durable Power of Attorney for finances: The durable power of attorney for finances gives your designated person the authority to make financial decisions on your behalf.

You can choose a person (known as your agent) to handle both the durable power of attorney for healthcare and the durable power of attorney for finances.  You may also choose different agents for each as long as they can work together (separate adult children for example).

For both powers of attorney, you also plan on an alternate agent.  This alternate agent would step in if the original person is unable to make decisions.

Powers of a Durable Power of Attorney in Washington State

A durable power of attorney in Washington state authorizes an agent to do the following on your behalf:

  • Make health care decisions for you
    • If you would like to have life-sustaining procedures withheld or withdrawn in the case of a terminal illness, you may also want to create a living will or advance directive to go along with your Power of Attorney.
  • Buy or sell items for you
  • Manage your business
  • Collect Debts
  • Invest money
  • Cash checks
  • Manage financial matters

Regulations for Washington State

There is no specific form you need to use for your POA for Washington State.  The only regulation is that the form or statement you use is notarized by a certified notary republic.  Most banks have a notary republic and are sometimes free if you are a customer.

After you and your agent(s) sign the documents in front of a notary, you want to make two copies.  The original will go to your agent, one copy will go to your alternate agent, and you will keep a copy for yourself.

Who Can Set up A Durable Power of Attorney in Washington State?

The following people can set up a durable power of attorney:

Estate planning attorney: You can use an estate planning attorney but do not have to by law. An attorney, like Lilac City Law, will customize your POA as part of your estate plan.

Loved one or trusted friend: Make sure you discuss with them what you want so that they can help you fill out the required paperwork accordingly.

Yourself: It is very important that you understand all decisions that you are making and what affects they will have before signing a legal document.  Be sure to choose a trusted person to act as your agent.  Most importantly, make sure they are willing to act as your agent.

We strongly suggest the first option above!   If you need assistance with your durable power of attorney, call our office today!

Contact Us, We’ll Help You Set Up Your Power of Attorney

  • This field is for validation purposes and should be left unchanged.

When Do I Need a Medical Power of Attorney in Washington State?

When Do I Need a Medical Power of Attorney in Washington State?

If you are searching for estate planning needs, you will likely come across the concept of a “Medical Power of Attorney.”

We wrote this article to help you understand what a medical power of attorney is, when you would need one, and how you would obtain one. 

What is a Medical Power of Attorney

A medical power of attorney may also be known as an advance care directive.  The medical power of attorney is a legal document in which you choose a person you trust (an agent) to make medical decisions on your behalf when you are unable to do so.  You can set up your power of attorney to state when and in what situations you want it to become effective.  For instance, it can be set up only to become effective after you have been deemed unable to make decisions on your own by your medical provider, or you may set it up to be more broadly applied to your life without needing any particular triggers to occur first.

In your medical power of attorney, you will be able to specify what you want your agent to be able to do on your behalf, including:

  • Sign medical documents on your behalf
  • Giving, withholding, or withdrawing informed consent including medical and surgical treatments
  • Decide if you receive life-prolonging interventions or psychiatric treatment
  • Determine if you are going to go to a nursing home, have hospitalization, or treatment in a nursing home or your own home
  • Decide measures for pain relief
  • Have access and control of your medical records

*When you choose an agent, make sure it is someone you can trust to follow your wishes.  Discuss your wishes with them and leave specific instructions in your medical power of attorney. 

It is also a good idea to appoint an alternate agent in case your agent is unable to make your health care decisions or is unavailable.

When You Need a Medical Power of Attorney

You need a medical power of attorney if you are unable to make your own decisions, or if you fear that this type of situation could or might occur.  Some things that can cause you to be unable to make your own decisions are:

  • Alzheimers or dementia
  • Brain injury
  • Severe illness
  • Coma
  • Age
  • Unconsciousness from an accident
  • Under anesthesia and cannot consent to a more extensive procedure
  • An Unforeseen Accident

You can guess at this point that it is a good idea and precaution to have a medical power of attorney even if you are young, healthy, and not expecting any major medical issues.  If there is an accident that leaves you incapacitated, and you do not have a power of attorney, your care decisions could be left up to the judgment of someone who does not know you, your values, or your wishes at all.

Where to Get WA Power of Attorney Support

We have spent some time talking about what sorts of support you should avoid in your estate planning quest.  Namely, impersonal online “one size fits all” templates.  Moreover, we consistently update our award-winning Lilac City Law blog on topics covering the full range of estate planning services.  However, whether you are looking at a template, or seeking more understanding, nothing truly beats speaking to a subject matter expert on these things.  Please feel free to reach out to us at any point, and we will set up a dedicated time to get to know your situation and offer practical, timely, and thoughtful advice on issues relating to your medical power of attorney, or other estate planning needs.

Contact Us, We’ll Help You Set Up Your Power of Attorney

  • This field is for validation purposes and should be left unchanged.

How Becoming Incapacitated Can Affect Your Family

How Becoming Incapacitated Can Affect Your Family

If you should become incapacitated at some point in your life, you can bet it will be both very scary and stressful for you and your family.

Becoming incapacitated and unable to take care of your affairs, does not mean that you do not have a plan or say in your care and finances though.

There are steps you can take today to ensure that you and your family are both taken care of should you or your spouse ever end up in this situation.

Advance Health Care Directive 

An advance health care directive is also known as a living will.  This document allows you to choose someone you trust to make your health care decisions.  This person might be a family member or a trusted friend.  Having someone designated to make sure your health care decisions are in line with your outlook and desires will take the pressure off of you and your family.

Working through the establishment of a living will/advance health care directive means stating clearly which health care and end of life choices you want.  This document also allows you to say what you want or do not want. For example, you can put in your advance health care directive that you do not want a feeding tube or you can put that you do want a respirator if those are your choices.  These directives eliminate ambiguity for your family when trying to make health care decisions on your behalf.

Setting up a living will/advance healthcare directive today is a great first step in getting your estate in order.

Set Up Your Advance Health Care Directive & Living Will Today

  • This field is for validation purposes and should be left unchanged.

Durable Power of Attorney for Finance 

A durable power of attorney is similar to the advance health care directive in that you choose a family member or a trusted friend to make decisions for you.  The difference is that this is for your finances.  Because of this, you want to make sure you choose a person you completely trust to make sound financial decisions for you and possibly your family depending on the situation.  The person you choose can be the same person as your advance health care directive but does not have to.

Guardianship Plan

When we say a Guardianship Plan, we are talking about a plan set up to help you to choose someone to take care of your minor children if you are unable to.  In many cases, your spouse will be there to the carry-on with guardianship of your minor children, but in the rare case both of you become incapacitated or only one of you are still living, it will give you the reassurance your children will be taken care of.

Along with choosing who will be your children’s guardian, you can also add a letter voicing your wishes for how your children are raised.  You can say what type of education you want for them, what religion you want them to follow, etc.

You can read more about guardianship plans and kids protection plans, here.

Trust

Having a trust set up for your children will ensure that your wealth is protected from undue taxes or probate while also setting up the transfer of your wealth and estate to those you designate.  You will be able to name a trustee who will help your children access your gift for things like schooling, housing, basic needs, or other things you want to designate.

To help reduce stress, the trustee and the guardian should be two separate people. However, they must be able to work together and make decisions in the best interest of your children.  Without a trust, your financial and property assets could become the rope in a tug of war between kids, relatives, and others.  If you were to become incapacitated, a trust would truly help to keep things straight for everyone!

Four Benefits of Printing Out Your Guardianship Plan on Good Ol’ Paper

Four Benefits of Printing Out Your Guardianship Plan on Good Ol’ Paper

In today’s society, most things are done on the computer and saved to a hard drive.  Important documents are very rarely printed out and filed in a file cabinet or folder.  However, there are benefits to printing out legal documents including your guardianship plan.

Here are four benefits of printing out your guardianship plan on good ol’ paper.

Accessibility

Most people have passwords on their computers.  If you should die or become incapacitated, how will your loved ones get access to your guardianship papers if you have a password on your computer?  If they cannot figure out your password they will have to trust the judge to make a decision on who is best to care for your children.  This will make it difficult for your loved ones to ensure your wishes are being met for your family.

Even if they are able to get access to your computer, they may not be able to figure out where you saved the guardianship papers.  Everyone has a different way of filing documents on their personal computer. For example, one person might put their guardianship papers in the file titled “Important Documents” while someone else might put it in a file titled “Stuff to Keep”.

Having it already printed and labeled in a file cabinet can be the easiest way for your family to access it.  In fact, here’s what we do when we create a plan for a client!

Verbal communication

Verbal communication is not enough.  It is great that you and your spouse agreed on someone to take your children and that person agreed to step in. However, you need a legal document stating who will be the legal guardian for your children.  If you print out your guardianship papers, you can give a copy to the person who will be caring for your children and you can put one with the rest of your estate planning paperwork. Having more than one copy ensures that it will be found when needed.

Expectations

Printing out your guardianship papers allows you to give them to your appointed guardian along with any other instructions you may have.  For example, you can write a letter of instruction to them.  You can explain your hopes and expectations for your children’s upbringing including education, activities, and religion.

 

Security

Having your documents saved on your computer risks them being compromised by hackers. This may not happen often but you do open yourself up to the possibility if you are saving your guardianship papers on the computer. Other security threats you risk by saving your guardianship papers online are:

  • Ransomware (software designed to lock up a computer until a ransom is paid) (very rare for personal computers)
  • Theft
  • Viruses
  • Data failure (data and documents can be lost due to software or hardware failure)

Hackers are not the only ones that can change your document.  If someone really wanted to, they could log onto your computer and change your guardianship papers to benefit them.  If you have them printed out and stored safely then they are much harder to be changed.

Printing out your guardianship papers has definitive benefits that will ensure your wishes are met if you are to become incapacitated or if you die.

Talk to an Estate Planning Attorney About Family Protection and Guardianship, Today! 

Contact

  • This field is for validation purposes and should be left unchanged.

What if I Become Incapacitated? Who Will Take Care of My Family?

What if I Become Incapacitated? Who Will Take Care of My Family?

Not being able to take care of your family or yourself can be a scary thought. 

Who will make all the important decisions about your finances, health, and important decisions about your family?

There are some estate planning documents that will allow you to name someone to take care of you and your family. 

Let’s take a look at what they are.

Advance Health Care Directive

An advance health care directive allows you to name someone to make health decisions for you when you are incapacitated.  This is often used to decide on whether or not to use feeding tubes, ventilators, or other life-sustaining treatments.  It is also used if you are unable to speak for yourself or sign health documents even at a doctor’s appointment.

The Advance Health Care Directive is also known as a living will or durable power of attorney for healthcare.

If you do not have an advance health care directive, doctors will do everything they can to keep you alive even if that is not what you want.  Be sure to discuss with whomever you choose what you would want them to do.

Durable Power of Attorney for Finance

Similar in intent to an advance health care directive, the durable power of attorney for finance allows you to name someone to take care of your finances if you become incapacitated.  This can be the same person or a different person than you named for your healthcare decisions.

If you do not name someone, then a court will appoint someone to manage your finances.  Your spouse may not have access to your finances unless everything has/had already been set into a joint property.

You want to make sure that whoever you name is someone you trust.  They will handle all of your finances!

If you do not have someone you trust, you can contact a professional to help you setup fiduciary support.

Guardianship Plan

A guardianship plan will lay out what is to happen to your children should you be incapacitated. More than likely if you have a spouse, your spouse will take over the full care of your children. However, if you or your spouse is not in town, not readily available, estranged, or any number of other scenarios where you (or they) cannot immediately take custody of your children, things can go sideways, fast!

Here’s a breakdown of what you need to know about Guardianship Plans:

You will need to name a guardian for your children.  You can also include what you want for your children, such as the type of schooling they will receive, if you want them to participate in sports, what values and morals you want them to grow up with, etc.

You want to choose someone you trust to follow your wishes.  They also should be able to financially and emotionally support your children and perhaps even have the same faith or values as you do.

Trust

Setting up a trust for your children will make sure that they will have the financial support they will need.  It can also ensure that your children will not receive their whole inheritance when they turn 18.  Naming someone other than the guardian to be the trustee of the trust can help make sure your children are using their inheritance wisely.  Regardless, you want to make sure that the guardian and the trustee can get along and make decisions together.

There are many factors involved when trying to lay-out how a trust will coordinate with a guardian, powers of attorney, advance directives, wills, and more.  Your best bet is to set up a consultation with a great estate planning attorney.

Talk to an Estate Planning Attorney About Family Protection and Guardianship, Today! 

Contact

  • This field is for validation purposes and should be left unchanged.

What Legal Documents Do I Need for my Estate Plan?

What Legal Documents Do I Need for my Estate Plan?

When setting up an estate plan, you may find yourself needing to find a lot of different documents. If you are using an estate planning attorney, you might find yourself asking, “What legal documents do I need?”  And more to the point, “what do I need to prepare these documents?”

To help you, we have compiled a list of documents you are going to need for each part of the estate planning process. 

Not everyone will need each part so don’t worry if you see something that you are not doing.  Feel free to contact us if you have any questions. 

Living Will

A living will is also known as an advance care directive.  A living will is only valid while you are alive.  It states your wishes for end of life medical care in case you are unable to communicate your decisions.  You can set up the living will to take effect either as soon as it is signed or it can be set up to only begin as soon as you are unable to communicate your wishes.  The requirements for a living will vary from state to state, so your best option is to hire an estate planning attorney to help you.  Legal documents you will need for your living will are:

  • Beneficiary informationLegal names, Contact information, Social Security, and Birth Certificate/adoption papers (for minor children).
  • Asset InformationCopy of the deed for your house or other real estate, titles for all vehicles, bank statements, retirement paperwork, paperwork related to investments, and any paperwork from an appraiser if you have any valuable personal property you want to be left to a specific beneficiary.
  • Debt Informationdocuments relating to your mortgage, car loans, student loans, and consumer debt.
  • Executor and Guardian InformationNames and contact information for anyone you name an executor or guardian.

Durable Power of Attorney for Finances

A Durable Power of Attorney for Finances allows you to name a trusted person to be able to make decisions about your finances should you become incapacitated.  If you do not have a Durable Power of Attorney for finances, then your loved ones will have to go to court and ask for the ability to make financial decisions.  Legal documents you will need for your living will are:

  • Durable Power of Attorney FormMust be filled out, signed, and notarized (for Washington state, requirements vary from state to state).
  • Attorney-in-fact contact informationContact information and legal name(s) for anyone you name to make decisions for you.

Durable Power of Attorney for Health Care

A Durable Power of Attorney for Health Care allows you to name someone to make health care decisions for you should you become incapacitated. It also allows you to voice what you want if you become incapacitated. Legal documents you will need for your living will are:

  • Durable Power of Attorney FormMust be filled out, signed, and notarized (for Washington state, requirements vary from state to state).
  • Attorney-in-fact contact informationContact information and legal name(s) for anyone you name to make decisions for you.

Last Will and Testament

You last will and testament is a legal document that allows you to say how your estate will be distributed after you die.  It will also allow you to name a guardian for your minor children if you have any and also what will happen to your pets. Legal documents you will need for your living will are:

  • Family DocumentsPrenuptial agreements, marriage certificates, divorce decrees, existing will and trust documents if you have them, adoption certificates (if applicable), and findings of your disability or of family members.
  • Business documents Partnership agreements, trade name registrations, and documents files to establish a corporation.
  • Real Estate DocumentsDeeds, real estate trust documents, and deeds of life estates or leases.
  • Account StatementsBank, retirement, and investment accounts.

Living Trust

There are two types of living trusts; Revocable (can be changed) and Irrevocable (cannot be changed).  Unlike a will, a living trust will ensure that property left through the trust will not have to go into probate.  When it goes through probate, it can take months to be settled and sometimes cost as much as 5% of the assets to pay for lawyers.  Not everyone has to be concerned about probate, and some people may not need a trust at all.  You can speak with an estate planning attorney to find out if you need a living trust.  Legal documents you will need for your living will are:

  • Beneficiary informationLegal names, Contact information, Social Security, and Birth Certificate/adoption papers (for minor children).
  • Asset InformationCopy of the deed for your house or other real estate, titles for all vehicles, bank statements, retirement paperwork, paperwork related to investments, and any paperwork from an appraiser if you have any valuable personal property you want to be left to a specific beneficiary. You only need documents for the property you will be putting into the living trust.
Finish Your Plan!  Contact an Estate Planning Attorney Today…

Contact

  • This field is for validation purposes and should be left unchanged.

Break Down Estate Planning By Using These Worksheets

Break Down Estate Planning By Using These Worksheets

Estate planning is not something you are probably thinking about… especially if you are decades out from retirement. 

It is one of those things we all know we should do but don’t think about until we are much older. 

Sometimes, sadly, we do not think about it until it is too late.

However, regardless of where you are in life, you should have an estate plan set up.

So where do you start?  Get yourself educated, informed, and start getting to know your assets and options as soon as possible.  Here are some tools to help you understand and get started with estate planning.

Checklist & Asset Inventory

Motley Fool Green Light has an excellent checklist as well as worksheets to help you gather all of your information into one place.  You will need to print it out in order to fill it out.  You can find that “Estate plan Papers to Gather” checklist here.

You can also find an asset inventory from Charles Schwab that helps you list out all of your assets, personal information, and beneficiaries.  This form you can either print out and fill out as needed.  The Charles Schwab asset inventory can be downloaded here. (Download link not working anymore, contact us for a helpful form!)

Living Will

A living will is also known as an advance care directive.  A living will is only valid while you are alive.  It states your wishes for end of life medical care in case you are unable to communicate your decisions.  You can set up the living will to take effect either as soon as it is signed or it can be set up to only begin as soon as you are unable to communicate your wishes.  The requirements for a living will vary from state to state so your best option is to hire an estate planning attorney to help you.  Be wary about do it yourself wills, here is why.

You can find informative pamphlets and a living will worksheet and Durable Power of Attorney for Health Care worksheet from Providence Washington, here.

Durable Power of Attorney (Finances and Health)

A Durable Power of Attorney for Finances allows you to name a trusted person to be able to make decisions about your finances should you become incapacitated.  If you do not have a Durable Power of Attorney for finances, then your loved ones will have to go to court and ask for the ability to make financial decisions on your behalf.  You can find a durable power of attorney for finances worksheet here.

A Durable Power of Attorney for Health Care allows you to name someone to make health care decisions for you should you become incapacitated. It also allows you to voice what you want if you become incapacitated.

Last Will and Testament

You last will and testament is a legal document that allows you to say how your estate will be distributed after you die.  It will also allow you to name a guardian for your minor children if you have any and also what will happen to your pets.

Read this article about DIY last wills and testaments.

Living Trust

There are two types of living trusts; Revocable (can be changed) and Irrevocable (cannot be changed).  Unlike a will, a living trust will ensure that property left through the trust will not have to go into probate.

Here is an article about the differences between Wills and Living Trusts.

When it goes through probate, it can take months to be settled and sometimes cost as much as 5% of the assets to pay for lawyers.  Not everyone has to be concerned about probate, and some people may not need a trust at all.  You can speak with an estate planning attorney to find out if you need a living trust. Sources:

Make Sense of All These Worksheets
Contact An Estate Planning Attorney Today!

Contact

  • This field is for validation purposes and should be left unchanged.

Who Can Help Create a Durable Power of Attorney in WA State

Who Can Help Create a Durable Power of Attorney in WA State

Most of us do not like to think about it, but what happens if we are unable to make our own decisions regarding our health and finances? Who is going to make those decisions for us? Are the decisions being made what we would decide if we could? Having a durable power of attorney in Washington state is the best way to ensure decisions are being made the way you would want them to be.

What is a Durable Power of Attorney?

A durable power of attorney (DPOA) is a legally binding document naming an individual or individuals (called an agent) to make health care, financial, and end-of-life decisions for another person. All adults should have one of these in the event there is an accident or sudden death.

A durable power of attorney in Washington state authorizes an agent to:

  • Make health care decisions for you or your minor children
    • If you would like to have life-sustaining procedures withheld or withdrawn in the case of a terminal illness, you may also want to create a living will or advance directive to go along with your Power of Attorney.
  • Buy or sell items for you
  • Manage your business
  • Collect Debts
  • Invest money
  • Cash checks
  • Manage financial matters
  • Sue on behalf of the principal

You do not have to include all above items. You can personalize your durable power of attorney to fit what you need or want in the event someone needs to make decisions for you. Limiting it to just being able to sign on your behalf if you become unable is an example of that. Your agent can not, however, act on your behalf after you die. A durable power of attorney is not a substitute for a will and will terminate upon your death or on a specific date if you so choose.

A durable power of attorney in Washington State must be notarized. After it is notarized, you want to give the original to your agent(s) and keep a copy for yourself.

Who Can Help Create a Durable Power of Attorney in WA state?

The fact that a durable power of attorney is a legal document may make some people shy away from creating one because they think that it will be difficult. You can get help to create a durable power of attorney in Washington State.

Estate Planning Attorney

You can use an estate planning attorney but do not have to by law. Using a legal professional can simplify the process and answer any questions you may have. It is very important that you understand all decisions that you are making and what affects they will have before signing a legal document. An attorney can also make your DPOA individualized. There are forms on the internet that can be printed, but they are very broad.

Loved One or Trusted Friend

Having a family member help you create a durable power of attorney is another option. Make sure you discuss with them what you want so that they can help you fill out the required paperwork accordingly. If the person helping you is going to be your agent, make sure they agree to your wishes before asking them.

Yourself

If you feel comfortable enough, you can fill out your own DPOA without help. Make sure you understand the document and what it is asking. Be sure to choose a trusted person to act as your agent. Most importantly, make sure they are willing to act as your agent.

Having durable power of attorney is an important step in your future. It can be hard emotionally and mentally fill out. Remember, if you do not feel comfortable doing it yourself you can contact an attorney to help you.

More Reading

A Young Family's Guide to a Rock Solid Estate Plan

A Young Family’s Guide to a Rock Solid Estate Plan