Estate planning during a pandemic – documents to consider
As we deal with the challenges of the current Covid-19 crisis it is important to look for ways to protect your family. Many things can happen during this time. You want to prepare for any scenario. Estate planning during a pandemic is helpful in case of any sudden illness or hospitalization.
A comprehensive estate plan covers many of life’s contingencies. A will is important but only comes into play at your death. There are other estate planning documents that help you during life events. For example, a sudden illness or medical emergency.
A comprehensive estate plan includes:
- Medical or Healthcare Power of Attorney
- Financial or Durable Power of Attorney
- Advance Medical Directive or Living Will
- Last Will and Testament
- Revocable or Living Trust
Medical or Healthcare Power of Attorney
Due to restrictive laws of the Health Insurance Portability and Accountability Act (HIPAA), it is difficult to get medical information on anyone over the age of 18. Because of this, you need to have permission to speak with doctors and nurses. This can be done through HIPAA Release Forms. However, it can be burdensome to get a HIPPA release form for each doctor you or your family member visits.
A Medical or Health Care Power of Attorney is a document that allows someone to name an “agent” or “surrogate” to get medical information and make medical decisions for their care if they are unable to do it themselves. In an emergency, it can cut down on red tape. You will be able to speak with their doctors immediately and make necessary healthcare decisions. This is particularly important if your parent or child lives far away from you.
Financial or Durable Power of Attorney
If there is a sudden hospitalization, who handles the finances? If your loved one is incapacitated, they might designate an “agent” to manage their money and affairs. A Financial or Durable Power of Attorney is a powerful document that allows someone to act on their behalf. The agent can step in and make all financial decisions. Because an agent has these significant powers, it is a good idea to talk to an estate planning attorney.
Consider a “springing” power of attorney. This type of power of attorney is only active if one or more physicians certify that there is an incapacity.
Advance Medical Directive or Living Will
An Advance Medical Directive or Living Will allows someone to declare if they want life-prolonging measures taken. If your loved one has a terminal or end-of-life condition, they decide what steps to take for their care and comfort. Having these directives take the stress and burden off of you to make these decisions.
Last Will and Testament
If you or your loved one dies without a will, a probate court determines how to handle the estate. A will speeds up probate and the administration of the estate, saving time and money. You or your loved one may not want a court to decide how to distribute the property.
If you have children, who will care for them? Or who has custody of their minor children, if any.
Revocable Trust
Revocable trusts can plan for incapacity, avoid probate, reduce estate taxes, and preserve assets. Learn about the 9 benefits of a trust. Ask your estate attorney about whether a trust is a good idea for your situation.
The Next Steps
If you have these estate planning documents prepared, good for you! Now is a great time to dust them off and ensure that they reflect your current wishes.
If you don’t have an estate plan, talk to an estate planning attorney. Discuss how these legal documents can help your family throughout your life. You will find comfort in planning for the future care of your family.
During a pandemic, you may be in the hospital and need others to handle your affairs. Create a Family Information Binder and organize your documents so you have them in one place in case of emergency. You can even get downloadable PDF Forms to get started on your Family Binder.
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