The BIG 3 Estate Planning Docs

The BIG 3 Estate Planning Documents

Though most people dread the thought of their own death, through a well-conceived and properly executed estate plan, you can protect your loved ones by leaving an organized strategy with your wishes instead of a mess.

You should have at least the “Big 3” documents (as I like to call them), which are the Will, Power of Attorney, and Healthcare Directive. Without having all three of these documents in place, you leave gaps in your plan that could cause confl ict among your loved ones and possibly require court intervention. Let’s walk through these documents in the order that you might need to use them so that you can better understand what purposes they serve.

In Pennsylvania, three components work together in a Healthcare Directive document, which aff ects access to healthcare information and the power to make medical decisions. First, a HIPAA Authorization will allow you to name loved ones to have access to your medical status or records from a doctor’s offi ce or hospital. Next, a Healthcare Power of Attorney names your healthcare agents, in the order that they can serve to make medical decisions for you if you can not do so for yourself. Lastly, a Living Will communicates detailed instructions for others to follow if you end up in a permanent vegetative state due to irreversible brain damage or suff er from an end-stage medical condition where you no longer have the capacity to voice your own opinion about your medical care or treatment.

A Durable Power of Attorney grants another person (known as an agent) the power to make all of your fi nancial and legal decisions. Or simply put—if you can do something for yourself, then your agent can do it for you. These powers include signifi cant ones like banking and investments, changing benefi ciaries on policies, taking out credit cards and life insurance, or fi ling taxes.

A Last Will and Testament spells out how you wish for your assets to be distributed after your death through probate. In order for this to happen, you also need to name an executor of your estate. An executor takes on a fi duciary role to collect your assets and then will pay any fi nal bills, funeral expenses, attorney fees, or other debts owed. Then, that executor will distribute your remaining assets according to your wishes.

Editor’s Note: This article was written by Ashley E. Sharek, Esq., Sharek Law Offi ce, LLC. She may be reached at 412-3471731 or contact@shareklaw.com. For more information visit their website at www. shareklaw.com. See their ad on the IFC-1.