Basic legal documents
Summary
Few plan to become ill, disabled, or incapacitated. When the unexpected happens, however, having legal documents in place to ensure that wishes are acted upon is essential. Regardless of how much property or assets someone owns, it’s important to ensure that you have these basic legal documents in place, including: last will and testament, financial and medical powers of attorney, living trust, and an advance healthcare directive. Many of these documents often comprise an estate plan.
Estate plan
This is a set of legal documents that identify a person’s wishes for how property should be distributed, who should take guardianship of minor children and/or pets, and who should make healthcare decisions in the event that a person is unable to do so for whatever reason. The essential elements of any estate plan include: a last will and testament, financial and medical powers of attorney, living trust, and an advance healthcare directive. (See “Estate plan basics”)
Last will and testament
This legal document specifies what should happen to property/assets, children, and/or pets in the event that a person dies. (See “Last will and testament”)
Financial and medical powers of attorney
These legal documents appoint someone to make financial or medical decisions for a person in the event that the person is unable to do so. A financial power of attorney may be general—ends the moment the person becomes incapacitated or durable—stays in place until the person dies or acts to revoke the power. A medical power of attorney is also known as a “healthcare proxy.” (See “Financial and medical powers of attorney”)
Living trust
This legal document preserves a person’s assets, helping ensure that loved ones avoid probate court and the associated delays and expenses. Trusts may be revocable or irrevocable. (See “Living trust”)
Advance healthcare directive
This legal document, also known as a living will, communicates a person’s healthcare wishes should they be unable to communicate them at a later point in time. (See “Advance healthcare directive”)
External supporting content
Estate planning basics: Give seniors peace of mind
Estate Planning Basics: Give Seniors Peace of Mind – DailyCaring
The 6 legal documents seniors need to have
The 6 Legal Documents Seniors Need to Have
Getting your affairs in order
