Families often believe estate planning begins and ends with your Will because it names your heirs and someone to settle your estate, makes your wishes known, and can name a guardian for your children should they need one. We won’t argue—a Will is one of the top three estate planning documents one should have. However, it doesn’t account for situations where you are unable to make decisions for yourself.
Incapacity can happen at any time because of an illness or accident. While you may not die, you may be in a debilitated state for an extended period. Quite often couples rely on each other to make health care decisions or to take care of the household finances should one spouse become incapacitated; however, it is important that you have the proper documentation. While you’re hospitalized, bills must be paid and sometimes decisions need to be made regarding your care. It is not a fun topic, but simply saying, “My spouse knows what I want,” isn’t good enough. The law doesn’t know and neither do the hospitals.
In addition to a Will, families also need a Financial Power of Attorney and an Advance Directive for Healthcare in place. These critical documents should be addressed by your estate planning attorney so they are in place before something happens to you. Once you are deemed incapacitated by a physician or a court, it is often too late. Powers of Attorney must be executed while you have the capacity to do so. Without these documents, state laws could determine which family member has the power to make medical or financial decisions for you.
A Financial Power of Attorney is used to authorize someone to act on your behalf financially, should you be physically or mentally unable to do so. Most spouses own assets jointly, like bank accounts or property, so accessing financial resources may not be difficult. However, some states require both spouses to consent in writing before selling jointly owned property. For example, without a Financial Power of Attorney, your spouse may not be able to sell assets to cover your medical bills. Furthermore, as you age, this document should be reviewed to ensure the agent you name is capable of handling the responsibility. Imagine the frustration for your family if something were to happen to you and your spouse was also under supervised care for his own physical or cognitive limitations. During your senior years, you may consider naming your child or a non-spouse relative or friend as an agent to handle the finances.
In Georgia, the Advance Directive for Healthcare allows you to designate a person to have the legal right to make health care decisions for you. This comprehensive document also allows you to express your medical wishes, such as your preference regarding organ donation, feeding tubes, artificial hydration, and/or certain life sustaining procedures. Even without this document, your spouse may be able to make medical decisions for you, but remember, once you’re incapacitated, you have no say regarding the decisions made by your spouse. You may have expressed your wishes to your family that you do not want feeding tubes, but without an Advance Directive for Healthcare, a distraught spouse could let doctors sustain you for months or years. This document should also be reviewed every few years to ensure your named agent is willing to shoulder the responsibility.
Having these legal documents in place can alleviate the burden for your family of wondering if they made the right call. We recommend having a qualified estate planning attorney draft these documents to ensure your full intent is accurately conveyed.
If you have questions regarding your estate planning documents, the experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166.
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
