Estate Planning, Wills, Durable Power of Attonry, Health Care Proxy

Estate Planning

The most difficult part about estate planning is choosing a guardian for your children. It's not easy imaging someone else raising your kids, especially if both parents do not agree on the guardian. However, it's a decision that has to be made because if you don't someone else will decide for you and you don’t want that to happen, that someone being the state.

Things to consider when choosing a guardian who is best suited to raise your kids.

1. Their Maturity
2. Financial Stability (although you should have insurance)
3. Health
4. Age
5. Religion
6. Marital Status
7. Relationship with our children and theirs
8. Moral Values
9. Where they live
10. Overall parenting
11. Don't worry about hurting someone feelings

Then discuss your plans with the person(s) you selected to make sure that the person(s) is ok with it and to answer any questions they may have. It would be a good thing to have an alternate incase the person(s) declines. Do not be offended, this is a huge responsibility and it should be considered thoroughly. Ensure that you have adequate insurance because raising a child these days is very expensive and you don’t want that burden to fall on someone without proper financial security.

Estate Planning Documents

Will

Although all documents are important in estate planning, a will is one of the most widely used. It is simply a set of instructions on how to distribute your assets to your family and charities upon your death. Be aware, however that a will is secondary to any beneficiary designations you have made on investments and retirements funds such as 401K, IRA's.

Living Will

This document lays out your wishes regarding the use of life-sustaining measures in the event of terminal illness. It's best used in tandem with a health care power of attorney, since a living will alone doesn't give anyone the authority to speak for you.

Durable Power of Attorney

You name another person to act on your behalf, with limited or broad powers as you see fit. Choose carefully because, in general, this person can buy and sell your assets. A durable power lets someone act on your behalf if you are disabled and terminates on your death.

Health Care Power of Attorney

This document authorizes someone to make medical decisions on your behlaf if you become incapacitated, providing a path to avoid family conflicts and possible court interventions. This could be a messy one.

Revocable Living Trust

Broadly speaking, this document provides for management of financial affairs during your lifetime (if you are incapacitated), upon your death and for future generations. This trust helps your estate avoid probate, lessening the risk of personal information becoming public record.

A wise person does at once, what a fool does at last. Both do the same thing; only at different times.

--Lord Acton

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