Your Estate Planning Arsenal + National Estate Planning & Awareness Week

In the U.S., we acknowledge October 21-27, 2024, as National Estate Planning & Awareness Week. This week was first designated in 2008 by the U.S. House of Representatives through House Resolution (HR) 1499. You can read it here… don't worry; it's not too long and doesn't contain a bunch of legalese.

Steve Urkel's smirky face.

This is the perfect time to cover estate planning basics! When I say basic, consider these your foundation if you do nothing else. Certain documents will make your life (or death) easier when needed, and it's better to plan ahead than get into a pickle and scramble to secure the documents later. Much like when filing your taxes, a myriad of IRS Schedules accommodate a specific tax situation, so estate planning is similar. While there are several specialty documents that depend on your unique situation, I recommend everyone consider these; note the naming convention may differ depending on the state you reside:

1.         Advance Healthcare Directive

2.         Living Will

3.         Anatomical Gift Declaration

4.         Appointment of Guardian for Dependent Children

5.         Financial Power of Attorney

6.         HIPAA Authorization

7.         Pet Placement Designation

8.         Testamentary Will

What They Do

Advance Healthcare Directive - a written statement of an individual's wishes regarding the medical care they would receive if unable to make their own decisions. This may be referred to as a healthcare power of attorney or living will in some states. It may also include an anatomical gift/organs declaration. Some states merge all documents into one. This is oftentimes available for free from your doctor's office or local hospital; you may also find them here on AARP's website for free by clicking on your state. https://www.aarp.org/caregiving/financial-legal/free-printable-advance-directives/

Appointment of Guardian for Dependent Children—Married persons are assumed to be the guardians for their spouse and young or disabled children if that person becomes incapacitated or disabled. Unmarried persons may appoint a guardian of their children should they become incapacitated or disabled. Some states have unique laws for this appointment.

Financial Power of Attorney (FPOA) - designates someone to oversee finances and transact business for an individual, including the ability to sign checks from the owner's bank account or pay their rent/mortgage. This document is best completed when the need arises. Note that a Payable on Death (POD) can be done at any time during an individual's life through their banking institution; PODs are used for various bank accounts. Similarly, a Transfer on Death (TOD) fulfills this purpose on investment accounts. It can be initiated through the corresponding financial institution. The POD and TOD are instituted once a person dies; you will still want an FPOA in the event of your incapacity.

HIPAA Authorization – HIPAA stands for Health Insurance Portability and Accountability Act (1996). This authorizes the total or limited use or disclosure of protected healthcare information, including treatment information, diagnosis, specific demographic data, and more.

Pet Placement Designation - decides the transfer of ownership of an individual's beloved pet after death. It may also include instructions on how to care for the pet. 

A Testamentary (Last) Will – the legal instrument stating an individual's wishes about the disposition of their real and personal property after their death.

You will need a notary and two disinterested witnesses for several of these documents. For purposes of these documents, a disinterested witness does not stand to directly benefit from the execution of the will or other documents.

You can obtain many of these documents for free from your doctor's office, banking institution, local library, and online. East Ocean Strategies provides many of these documents in one package for a reasonable price; they are fillable and can be reused. Our updated forms will be available next week in our online Shop in honor of National Estate Planning & Awareness Week. Meanwhile, older versions are at a deep discount.

https://www.eastoceanstrategies.com/shopeo

Happy Legacy Building!