Estate planning.  Estate.  Planning.  Many of us read the words “estate planning” and experience a whole slew of emotions.  You may think “I’m too young to need an estate plan” or “I’m not rich so I certainly don’t have an estate.”  Odds are, you’re wrong on both counts.  

If you’re lucky enough to have been spared the experience of a tragic loss yourself, you probably know someone who hasn’t been as fortunate - a friend or family member whose loved one’s life was cut short by a terrible illness or horrific accident.  Unfortunately, none of us is guaranteed tomorrow, and the best way to protect your loved ones in the event of an unexpected tragedy is to have a plan.

If you own any assets, you have an estate, the legal term for the property a person owns.  Yes, estates may include real estate and bank accounts, but they also include collectible items, jewelry, vehicles, and the like.

In Pennsylvania, an estate may pass to a person’s heirs by two paths: intestate or testate succession.  Intestate succession is how a person’s assets pass to their heirs if a person dies without a will.  Each state has its own intestacy laws, and your property will pass to your next of kin without your having any input.  If you want to be sure that your favorite person receives the family heirloom that’s been passed down for generations or your most prized possession, you need to be proactive in estate planning.

While some may shy away from estate planning because they still feel invincible or think they have another 60 years to live, others may be hesitant to start the process because it feels overwhelming.  Let me tell you, it does not have to be that way.  Even the most basic of documents can help ease the stress your family will inevitably experience.

An essential estate package consists of five documents: a Last Will and Testament, a Durable Power of Attorney, a Durable Healthcare Power of Attorney, a HIPAA Release form and a Final Disposition Instruction sheet.  

Last Will and Testament

Your Last Will and Testament is exactly what it sounds like – it’s the document that conveys what your will is – how you want your estate to be handled, how you want your property to be distributed, and exactly what your wishes are.

Powers-of-Attorney

A Power-of-Attorney, more commonly known as a POA, allows you to give someone else the power to act on your behalf.  Should you become incapacitated or unable to make decisions for yourself, a Durable Power-of-Attorney grants your Agent the authority to handle day-to-day tasks for you, such as paying your bills, buying/selling real estate, etc.  A Healthcare POA, however, allows your Agent to make important medical decisions on your behalf in the event of you become incapacitated.  The most important aspect of a Healthcare POA is that it gives you a voice when you may be unable to speak.  While most loved ones may know your end-of-life decisions, a Healthcare POA ensures that your wishes are carried out. 

HIPAA Release

Today, your privacy may be one of your most valued possessions, and it may also be one of the hardest to protect.  With the enactment of laws specifically written to protect your private medical information, you should grant your Agent access to your information.  Your Agent will most likely need this information to help carry out your directives and make the decision best aligned with your wishes.

Final Disposition Instructions

Have you made pre-funeral arrangements somewhere?  Do you want to be cremated because you’re claustrophobic and can’t stand the thought of your body lying in a casket?  Or maybe you’re terrified of fire and would rather be buried in a casket than be cremated?  Either way, do your loved ones know without a doubt what you want?  Do you want a funeral?  A viewing?  These are some really tough questions to think through.  Pause and consider this: if these are difficult for you to think about, how hard do you think these decisions will be for your loved ones to make when they are grieving your loss?  Final Disposition Instructions give your Agent all the answers, and once again, allows your Agent to carry out your wishes. 

Essential estate documents are invaluable because they take the guessing out of a terrible situation.  Having your wishes in writing prevents a loved one from having to make an impossible decision without your input and possibly second-guessing that decision down the road.  If your Agent is carrying out your wishes, the impossibly hard decisions may become easier to make, knowing it was what you wanted.  

If you do not have these five documents in place, call The Skeen Firm (724-550-6970) today to schedule an appointment.  It’s never too early to ease the inevitable burden on your loved ones and ensure that your voice is heard.