Estate planning isn’t just for the wealthy, it’s for anyone who wants to protect their loved ones and ensure their wishes are carried out. While estate planning can involve many elements, three essential documents form the foundation of a solid plan: a will, a durable power of attorney, and an advance health care directive.
Will: ensuring your loved ones are protected
A will is a legal document that outlines how your assets—such as your home, savings, and personal belongings—should be distributed after you pass away. It also allows you to:
- Name a guardian for minor children.
- Specify who receives your property and how.
- Prevent family disputes by providing clear instructions.
Without a will, your estate will be distributed according to state laws, which may not align with your wishes. A will ensures that your loved ones are taken care of according to your plan.
Durable power of attorney: managing your finances
A durable power of attorney (DPOA) allows you to appoint a trusted person to manage your finances if you become incapacitated due to illness or an accident. This ensures that:
- Your bills, mortgage, and other financial obligations continue to be paid.
- Your spouse or children can access accounts needed for household expenses.
- You avoid court-appointed guardianship, which can be costly and time-consuming.
Without a DPOA, your loved ones may face legal hurdles just to manage your basic financial needs.
Advance health care directive: ensuring your medical wishes are followed
An advance health care directive (AHCD) outlines your medical preferences and appoints a healthcare agent to make decisions on your behalf if you cannot do so. This document helps:
- Ensure your treatment preferences (such as life support or pain management) are respected.
- Prevent family conflicts by providing clear medical instructions.
- Give a trusted person legal authority to advocate for your care.
Without an AHCD, medical decisions may be left to doctors or family members who may not know your wishes.
Don’t procrastinate
Estate planning doesn’t have to be complicated. Having these three essential documents in place can provide peace of mind and financial security for you and your loved ones. Not having them in place can be a huge burden on your family. Taking the time to prepare now can prevent stress, confusion, and unnecessary legal challenges in the future.
Note: Because laws vary by state, consider consulting an estate planning attorney to ensure your estate planning documents comply with local requirements and reflect your wishes.
