Estate Planning

If you’ve decided to preplan your funeral, you are giving your family a true gift. Not only is preplanning an expression of your great love, but it also puts everyone’s minds at ease, knowing that all the details have been taken care of. While the decision to preplan may have been easy to make, it can be harder to tell family about it. Today, let’s talk about 7 easy steps to sharing your funeral plans and helping your family understand the benefits.

7 Easy Steps to Sharing Your Funeral Plans with Family

The time and method of sharing your funeral plans is entirely up to you. You can chat over the phone or in person, whatever works best for your family.

Before you begin, prepare yourself for some possible pushback. Some people shy away from talking about death and anything related to it. Your children or relatives may try to brush the topic aside or protest that they will take care of everything. If that happens, tell them firmly but kindly that you have specific wishes that you want them to know.

1. Start off by talking about your health

When possible, it’s best to have this conversation when you are in good health. If you are in good health, reassure your children that everything is fine and that you are just thinking ahead. Perhaps mention that you’d rather have this discussion now than when you are ill. On the other hand, if you are already fighting an illness, let them know that you are thinking about what’s best for them. Explain that you want to do this because you love them.

2. Acknowledge that the conversation isn’t easy

Let them know that you don’t take this conversation lightly. Share with them how you have thoughtfully considered the best way to impart this information. Acknowledge that the topic isn’t easy for you either, but you want to ensure they know what to do after you’re gone. You want to make things as straightforward and simple for them as possible.

3. Share why you preplanned your funeral

Highlight the reasons why you decided to preplan your funeral. Perhaps you wanted to ease some of the decision-making burdens they will feel when the time comes. Or you wanted to have some sense of control over what your final disposition will be.

It could also be that you want to save money and pay for the funeral costs over time rather than have the burden fall on your children. Or you want to protect your family from emotional overspending by ensuring they don’t pay for unnecessary merchandise. No matter your motivation, speak from the heart and share your personal “why” behind planning ahead.

4. Present your plan

Make sure that you’ve written a comprehensive plan before you share it with your family. Your relatives may have ideas that are different from yours, and you need to know which items are non-negotiable so that you can stand your ground, if necessary. Don’t feel the need to expound on every small detail of the plan. Just make sure they know your wishes and which funeral home you are partnering with.

5. Ask if there’s anything they’d like to contribute or include

While the funeral honors the dead, it’s a healing balm for the living. If you’d like to invite your family to make suggestions, feel free to do so.

Your relatives may have creative ideas to share that will enhance your plans. Or there may be something you haven’t thought of that will be particularly meaningful to them if it’s included in the service. For example, your child who plays the violin may want to perform one of your favorite songs. Or your artistic sibling may want to put together a decorative collage of your growing up years together.

There’s value in understanding what will help others heal and incorporating those details into the service. You, of course, maintain all veto powers! Not every idea is a good idea, and it’s okay to set boundaries.

6. Answer their questions

It’s natural to have questions. Let your family ask theirs and listen to what’s on their hearts and minds. Be willing to change a few things on your funeral plan. If their responses seem negative, try to understand the fear that is motivating them, and address that fear directly. It is hard to face the reality of death, even if it’s far distant. But if you are committed to preplanning and ensuring that everything is taken care of for your family’s benefit, then the hard conversations have to happen.

7. Reassure them

As your conversation draws to a close, remind your family how much you love them. Reiterate that you have created a plan that you hope will bring them peace and comfort when you cannot physically be with them. As you end the discussion, reassure everyone that this is an ongoing conversation. If they have questions or concerns later, you are open to discussing this topic as much as they would like.

Hopefully these 7 steps will help you successfully navigate the preplanning conversation with your family. Even if they aren’t enthusiastic about hearing that you’ve made funeral plans, in the end, they will be grateful that you are thinking ahead. If you haven’t already, make sure to finalize your funeral plans with your chosen funeral home and consider the benefits of pre-paying. Check out the resources below for more helpful information!

• 6 Ways You Can Save Money with Funeral Preplanning & Prefunding
• 5 Reasons to Discuss Your Funeral Wishes with Your Family
• How Preplanning Eases Emotional, Financial & Legal Burdens After a Death
• 10 Reasons to Plan Ahead

All kinds of documents require that you list an emergency contact. But why? Because the unexpected happens, and at some point, you’re going to need a trustworthy person to represent you when you can’t do it yourself.

Most of the time, an emergency contact is a close friend or family member, and they may already be somewhat familiar with your wishes and preferences. But to be most effective, there are 6 things you should discuss with your emergency contacts. The more information they have, the more able they are to support your wishes and make decisions on your behalf. Let’s talk about it!

1. The Location of Your Legal Documents and Insurance Policies

Your emergency contacts need to know where to find important documents like your legal will, birth and marriage certificates, deeds, titles, insurance policies, powers of attorney documents, health care directives, funeral planning documents, and records of creditors and assets, including digital assets and passwords.

If you’re using a safe for your documents, share the combination with your emergency contacts. You could also opt for a safe deposit box and coordinate with the bank to give your emergency contacts access. As an alternative, you might consider purchasing a watertight, fire-proof, easily transportable container. This way, your documents are safe and transportable if there’s a fire, flood, or some other unexpected event.

2. The Terms of Your Will and Trusts

Sit down with your emergency contact and go over your legal will. This includes your wishes for the distribution of your assets, heirlooms, furniture, and keepsakes.

To ensure your wishes are honored, include as many details in the will as possible and appoint a trusted executor. If there are any belongings or assets that are not directly addressed in the will, it’s best to update your will to include them.

Additionally, you may also wish to set up financial trusts to provide for your children or grandchildren. Consider appointing one of your emergency contacts as trustee and discussing the terms of those trusts.

3. Your Wishes for Medical Care

If you have specific wishes regarding your medical care, it’s best to outline those wishes with an advance care directive and discuss your choices with your emergency contacts. Advance care directives are documents that will protect you in case you are incapacitated and/or unable to make medical decisions for yourself. They will clearly outline your wishes for medical treatment and life-saving measures. You can learn more by reading “Understanding the Living Will & Why It Matters.”

4. Allergies and Blood Type

If you have allergies to food or medications, your emergency contacts should know so they can alert medical professionals if you are unable to do so. It is also a good idea to provide your emergency contacts with a record of your blood type in case of emergency.

5. The Care of Your Dependents and Pets

If you are responsible for children or pets, talk with your emergency contacts about their care. Let your emergency contacts know whom you name as the children’s guardian and how you’ve set up any insurance policy benefits, 401(k) funds, or other assets to provide financially for your children.

For pets, identify a friend or family member who can take in your furry (or non-furry) friends and provide a loving home. You can write down any pertinent details for your pets’ care and ask your emergency contact to pass the information along.

6. Your Funeral Wishes and Plans

One way you can love and protect your loved ones is by putting together a healing and meaningful funeral plan. By making the decisions now, you can ensure that your family doesn’t have to make hard decisions at an emotional time.

The best way to preplan is with a licensed funeral director at your trusted funeral home. They can review your options and ensure that your plan is practical, legal, within your budget, and healing for your grieving family.

Give your emergency contacts a copy of your funeral plans and keep a copy on file at the funeral home of your choice.

IMPORTANT: After prearranging your funeral, it is essential to share your plans with your family and emergency contacts. If you don’t, you run the risk that your family will never learn about your plans and may spend more money than you would have preferred. On top of that, if you’ve prepaid for your funeral and no one knows, your family may go to a different funeral home and pay for everything out of their own pocket. If this happens, the amount you’ve already paid toward your funeral may go to the state’s unclaimed property office. While the state will continue to try to contact your family, this may take years and is subject to state laws. To avoid this possibility, it’s best to share your plans.

What Next?

For a complete list of information your emergency contacts need to know, download this helpful checklist: What Your Emergency Contacts Should Know. By gathering all these documents, you are taking the first steps to getting your affairs in order. While the process takes time, it removes a lot of confusion and uncertainty. When your wishes are clear and understandable, your family can make decisions with confidence. As needed, consult trusted professionals, such as an estate planning attorney and your local funeral director. In the end, you will be glad you did!

DISCLAIMER: Individual circumstances and state laws vary, so any estate planning should only be undertaken with the help and assistance of an attorney licensed in your state. 

When someone you love passes away, there are many things to consider, including what to do with their house and possessions. As you walk through a loved one’s home, you may see yourself keeping a few cherished items, but you cannot see yourself keeping everything. What can you do? Consider having an estate sale!

While you could host an estate sale yourself, that can get complicated. Instead, consider hiring an estate sale company. There are many companies to choose from, so take a look at these 8 tips for hiring a professional estate sale company.

1. Choose a Company that Respects Your Wishes for Personal Involvement

As you start your search, look for an estate sale company that makes you feel comfortable with your level of control and personal involvement.

For some people, a lost loved one’s home may be out of state, which can make logistics tricky. The distance may require you to conduct your business through phone calls and virtual communication.

If that’s the case, choose a company that maintains frequent communication and is used to working with out-of-town family members. Whether you’re local or not, hiring an estate sale company that lets you be as much or as little involved as you want is worth considering.

2. Choose a Company with Good Word-of-Mouth Recommendations

To find a trustworthy business, consider asking your friends and family about their experiences with professional estate sale companies. Chances are, they’ll know someone local with whom they’ve had a good experience.

Alternatively, you could also attend local estate sales in your area and ask about the company they hired. If the heirs aren’t present, take the opportunity to speak with the company associates themselves.

Lastly, your estate sale company search can also be conducted online by reading reviews. Star ratings, photos, and testimonials allow you to discern whether the company you’re looking at is the right choice for you.

3. Choose a Company that Focuses on Your Service Priorities

Once you compile a list of potential estate sale companies, think about the services you would like to employ. You’ll want to ask yourself questions like:

• Am I looking for help with pricing items?
• Does staging the house feel like too much right now?
• Would I prefer to oversee the sale itself, or would I rather be absent from it?
• Would I prefer the company to advertise the estate sale?
• How do I want to handle negotiations with buyers?
• Do I have any specialty items that require attention?
• Would I prefer the company to handle any leftover items that aren’t sold?

As you answer these questions, you’ll hone in on your own priorities and can hire a company that takes those priorities seriously.

4. Choose a Company that Fits Your Budget

After figuring out which services you need, ask yourself how much you are willing to spend on an estate sale company. Making a budget is a smart way to keep your costs within your means.

Ask each company for their pricing, their commission percentage, and their fees. This way, you can easily compare each company’s offerings and pricing. However, keep in mind that you get what you pay for. Some companies may charge a higher rate but have a better understanding of the practice and market. On the other hand, some companies could charge a lower rate and have less experience and fewer connections. Always weigh the pros and cons before deciding whom to hire.

5. Choose a Company that Takes a Reasonable Commission

Once you have decided on your service priorities and an estimated spending range, consider the commission percentage the company will require. Keep in mind that since you have decided to hire an estate sale company, the profit you receive will be lower than if you choose to host the sale yourself.

Feel free to ask the companies you contact for price quotes and explanations behind their commission percentage. A trustworthy company will be transparent about their rates before you hire them. As stated in the previous tip, some companies may feel comfortable asking for a higher rate due to their experience and knowledge in estate sales.

6. Choose a Company that Meets Your Schedule

Your day-to-day life comes with numerous responsibilities, so you’ll want to choose a company that is flexible and can accommodate your schedule. Feel free to pull out your weekly calendar and suggest dates and times that are convenient for you.

As you start to coordinate meetings and the logistics of the estate sale, ask yourself these questions. When do you have time to meet with the companies you’re considering? How much time will it take to review everything you wish to sell? How long does the estate sale company expect the entire process to take?

You don’t want to feel rushed for time when working with an estate sale company, and a good company won’t try to hurry you.

7. Choose a Company that Helps You Decide What to Keep

When coordinating an estate sale, you must start thinking about what you would like to keep from your loved one’s estate. Once you’re done looking through your deceased loved one’s belongings, a good estate sale company will carefully review each item and help you price everything efficiently.

If you’re curious about a particular item’s value, they’ll also be able to help. These professionals are trained to look at and appraise items for a fair and reasonable amount.

8. Choose a Company with Consignment or Donation Opportunities

Once your estate sale concludes, you will likely have items left over that did not sell. That’s why it’s important to choose a company that has a plan for unsold items. Do they price items for consignment or offer to drop off the remaining items at a local donation center? Ask the company about their policies and offerings so you know what your responsibilities will be after the estate sale is over. This way, there are no loose ends following the estate sale.

Making a Decision

Hopefully, these tips will help you as you decide whether or not to hire an estate sale company to assist you with clearing out a loved one’s home after their passing.

By choosing a trustworthy and reliable estate sale company, you can rely on experts to take care of everything. They will appraise estate items appropriately, stage the house, and share extensive knowledge of the estate sale process with you. Not only will the estate sale conclude smoothly, but an incredible emotional weight will be lifted off your shoulders.

Whether you choose to hire an estate sale company or do it yourself, consider exploring these additional resources for more information.

Pros and Cons of Using a Professional Estate Sale Company

11 Tips for Planning a DIY Estate Sale

Many families plan to pay for a funeral with life insurance benefits. Sounds like a simple plan, doesn’t it? The truth is, there can be many unexpected complications with life insurance policies. Let’s talk about it.

What Could Go Wrong with a Life Insurance Policy?

If you are thinking about using a life insurance policy to pay for a funeral, it’s important to understand what factors could complicate the process. Here are a few things (though the list is not comprehensive) that could prevent or delay you or your family from accessing life insurance funds in time to pay for a funeral:

• The policy is no longer valid (for various reasons) and has now lapsed
• The beneficiaries named are no longer living (and new ones must be determined, possibly by state law)
• The policy may have a lien on it
• The date of death or cause of death could limit the payout
• An ex-spouse or a minor was named as a beneficiary
• The funds are insufficient to cover all end-of-life expenses
• The policy isn’t assignable (more on this later)

Any of these “red flags” could prevent you from using an insurance policy for funeral expenses. But even if the policy is problem free, it may take 6 to 8 weeks to receive payment. In most cases, that’s long after the funeral has taken place.

Does the Life Insurance Policy Sufficiently Cover All End-of-Life Expenses?

If you are thinking about using a life insurance policy to pay for funeral expenses, another question to consider is, “Did the policyholder opt for an insured amount that would be enough to cover all end-of-life expenses as well as replace income?” In other words, is there enough money to cover all expenses AND help the surviving family?

Aside from funeral expenses, there will be many things to pay for after a loved one’s passing. Were there any credit card or medical bills, mortgages, or vehicle notes to pay off? Has the family lost a primary income and the life insurance money can help them stay afloat until that income can be replaced?

If these additional expenses weren’t considered when the policy was taken out, the family may have a hard time covering all the potential costs.

What Can You Do to Avoid Life Insurance Complications?

Here are a few solutions that may help you avoid future complications with life insurance at the time of death:

Review and Update Insurance Policies Regularly

If you plan to use life insurance benefits to cover funeral costs, check the policy to make sure it is still valid and update it as your life changes. If you have any questions, an elder law attorney can help you identify any concerns in your policies and assist you in correcting them. Or, if you are already in the midst of planning a funeral for a loved one, the funeral home can help, though the life insurance company will have more specific answers about the policy.

Make Sure the Policy is Assignable

To make it easier to use a life insurance policy for funeral expenses, make sure that the policy is designated as “assignable.” This means that you can sign the benefits over to a third party who will file the claim on your behalf (usually the funeral home or an assignment company). The type of policy you signed up for and the life insurance company determine whether a policy is assignable.

Funeral homes generally accept a life insurance policy in lieu of payment for a funeral, though it’s best not to assume that they will. Remember, if they do accept a policy as payment, it must be assignable. If the policy is not assignable, it’s unlikely a family can use life insurance to cover funeral costs because it can take 6 to 8 weeks to process a claim. By that time, most funeral services are already complete.

Resolve Any Issues Before Death Occurs

It can be difficult and complicated to deal with a loved one’s financial assets after their passing. If there is no legally stated heir, the courts will likely probate the estate. When an estate is probated, it means that the court system must approve the validity of a last will and testament and confirm the appointment of an executor. This court procedure can sometimes be lengthy and incur additional costs. It’s much easier for heirs to inherit if there’s a legal will and up-to-date beneficiary information on any insurance policies.

Consider Preplanning Your Funeral

Another way you can help your loved ones is by planning the details of your funeral in advance. When family members are grieving, it can be hard to make decisions. Sometimes there is a tendency to overspend because people want “only the best” for Mom or Dad. But if the family knows your specific wishes, they can hone in on those and potentially save hundreds or even thousands of dollars, which means there will be more life insurance funds leftover to pay for other expenses.

To take it one step further, you can set up a prepaid funeral plan. Essentially, this is a funeral insurance policy, intended to pay for funeral expenses specifically. A funeral insurance policy offers several surprising benefits above and beyond what a life insurance policy can do. Plus, with a funeral insurance policy, you can protect life insurance funds for their true intention – helping the grieving family financially after the loss of a loved one.

To learn more about the benefits of a prepaid funeral plan, check out the chart below.

Next Steps

Some funeral homes offer payment options, but it’s always ideal to determine your plan before tragedy strikes. With a plan in place, you can alleviate the financial stress your loved ones may feel on one of the hardest days of their lives.

Whether you choose to use a life insurance policy or a funeral insurance policy, do a little research. With information in hand, you can do what’s best for your family. Also, remember that a trusted funeral director is a great resource! They’ve seen families use life insurance polices and funeral insurance policies to pay for funeral expenses and can provide expert insight into the pros and possible cons of each.

While getting your affairs in order may feel like a daunting task, it makes the grieving process and closing out an estate much easier for surviving children and heirs. They won’t have to untangle any accounts or wonder how you wanted your property or assets distributed. Instead, they can focus on grieving, supporting each other, and remembering the relationship you shared.

And yes, the process of putting your affairs in order will take time, but there’s good news! Below, you will find a checklist of important documents to gather as well as guidance regarding other estate planning topics you should consider. Let’s get started.

Step 1: Gather Important Information

The information and documents listed below will apply to most families. However, there may be additional documents that are important to your specific family. The list below is an excellent starting place and covers the vast majority of what you will need. However, take time to sit down and think through your situation. You may find more documents to include.

Checklist

• Full legal name
• Social Security number/card
• Address of legal residence
• Date and place of birth
• Names and addresses of spouse and children
• Birth and death certificates and certificates of marriage, divorce, citizenship, and adoption (whichever are applicable)
• Employers and dates of employment
• Education and military records
• Names and phone numbers of religious contacts (if applicable)
• Names and phone numbers of close friends, relatives, doctors, lawyers, and financial advisors
• Medications taken regularly (keep this updated!)
• Location of living will and other legal documents
• Sources of income and assets (pension from your employer, IRAs, 401(k)s, interest, royalties, etc.)
• Social Security and Medicare/Medicaid information
• Insurance information (life, health, long-term care, home, etc.) with policy numbers and agents’ names and phone numbers
• Copy of your most recent income tax return
• Location of your most up-to-date legal will with an original signature
• Liabilities, including property tax
• Mortgages and debts
• Location of original deed of trust for home
• Car title and registration
• Credit and debit card names and numbers
• Location of safe deposit box and key

Special note: It’s important to keep your documents safe, especially in the face of natural disasters. One way to keep your documents safe is to purchase a fire and water secure case. But whatever you choose, find a way to keep your documents secure and accessible in case of emergency.

Step 2: Consider Estate Planning

Estate planning is about ensuring that your wishes regarding your estate are carried out. While most of us don’t have a literal estate with a grand manor and a stable full of horses, we do all have an “estate.” In legal terms, an estate consists of everything you own – car, home, other real estate, bank accounts, investment accounts, 401(k)s, insurance policies, furniture, personal possessions, and even pets.

By determining what your wishes are, who will receive what and when, and who is responsible for executing your legal will, you participate in estate planning. If you are interested in estate planning, please review the questions below and determine if you have taken care of them fully.

1. Do you have a legal will?

Writing a legal will is one of the best things you can do for your family. To reduce the risk of misunderstandings, heartache, and the possible headache of taking your estate through probate court, it’s best if you clearly outline who gets what and when. If there is no legal will, the state may determine the distribution of your property and assets. So, if you don’t have a legal will, your assets may not go to your heirs, depending on your state’s current regulations. If you would like to write a legal will, first talk with an attorney or try out a web service that specializes in legal documents.

2. If you do have a legal will, have you appointed an executor? And does your chosen executor have access to and know where to find all of your important documents?

Above all, the executor of your will should be someone you trust. They will carry out the wishes outlined in your legal will to the letter.

3. Have you named your beneficiaries?

Beneficiaries are the people or organizations that will receive your assets and/or property after your death. In general, it is good practice to double-check your beneficiaries every few years. This includes beneficiaries on your legal will and on any life insurance policies you may have with the purpose of ensuring everything still reflects your wishes. Double-checking beneficiaries is especially important with blended families as divorce or remarriage could change your chosen beneficiaries. To learn more, read “Estate Planning for the Blended Family.”

4. Do you want or need a trust?

If you are unfamiliar with trusts, they are similar to a will. Both a will and a trust are meant to spell out your wishes regarding assets and property. The main difference between the two is that a will is effective only after you die and then must be probated (carried out) by the court system and your chosen executor. On the other hand, in the case of a trust, there is no need to go through the court system – your successor trustee (aka the executor) will carry out your wishes after your death as they are written in the trust.

Additionally, with a trust, your successor trustee can manage your financial, healthcare, or legal affairs if you become incapacitated while you’re living. Talk with an estate planner to see if this option is right for you. Typically, a trust is helpful for those with a large number of assets and property.

5. Have you considered your digital estate?

If you have used an email account, a networking website, or bought items online, you have a digital estate. It’s just as important to determine the future of your digital estate as your physical estate. For suggestions on how to manage your digital estate, please read “8 Tips for Managing Your Digital Estate” or “How to Make Digital Estate Planning Simple.”

6. Do you have any dependents (including pets)? Have you made your wishes clear regarding their well-being?

Most people know that they should indicate who will care for their dependents once they are gone. However, pets are also an important part of the family, and while we love them dearly, sometimes we overlook them in the estate planning process. To that end, make sure to include any veterinary documentation in your important paperwork and outline who should take over the care of your beloved animals.

Step 3: Look Into Advance Funeral Planning

No matter your level of interest, funeral planning needs to be on your list of things to do as you get your affairs in order. By writing down your funeral preferences ahead of time, you give your family a roadmap to honoring your life. Having this roadmap will take a burden off their shoulders and allow them to focus on loving and supporting each other.

For additional information on advance funeral planning, click on the links below:

• What is Advance Funeral Planning?
• 10 Reasons to Plan Ahead
• 6 Ways You Can Save Money with Funeral Preplanning & Prefunding
• What to Expect at a Preplanning Appointment
• How to Get Started with Funeral Preplanning

Step 4: Write Out Your Advance Care Directives (ACD)

In short, an advance care directive (ACD) ensures that, if you become incapacitated, your medical wishes are known and fulfilled. Two documents, the living will and the healthcare power of attorney, make up an ACD. Sit down with your doctor and those closest to you and discuss what your wishes are regarding medical care. For more information regarding preparation of your advance care directives, read “Developing Your Advance Care Directive.”

Step 5: Keep It Current

Once you have your affairs in order, keep them up-to-date and current, especially your legal documents, beneficiary information, and most recent tax return. Make sure to appoint a new executor if the one you have currently chosen moves away or is unable to fulfill his or her duties. If you move, update your current address on all your documents, policies, accounts, and assets. At the beginning, it’s quite an undertaking to gather all the information. But, once it’s together, updating is simple.

Also, you might consider holding a family meeting to go over your wishes and your estate. For some families, this may not be pleasant or even possible. But if you can schedule it, a family meeting is an excellent time to let everyone know how your assets are going to be distributed. By being proactive, you can answer questions, set expectations, and hopefully, prevent any family disagreements over your final wishes.

DISCLAIMER: Individual circumstances and state laws vary, so only undertake estate planning with the help and assistance of an attorney licensed in your state.

When it comes to estate planning, there are many documents that cover different areas of your life, like healthcare, finances, and funeral wishes. One such document that plays a vital role in supporting your healthcare wishes is the healthcare power of attorney, also known as a medical power of attorney or a durable power of attorney for healthcare.

But what exactly is a medical power of attorney, and why do you need one? Let’s learn more about this important document!

What does a healthcare power of attorney do?

A power of attorney authorizes someone else, often called an agent, to make decisions on your behalf. There are different types of power of attorney. A general power of attorney nominates one agent who can act on your behalf in all financial, legal, and medical areas. However, if you wish to nominate someone different for each area, you’ll need to explore limited powers of attorney.

That’s where a healthcare power of attorney comes in! A healthcare power of attorney serves as one piece of your advance care directive, a set of documents that lays out the medical care you wish to receive. You can use this type of power of attorney to nominate someone you trust as a healthcare proxy. A healthcare proxy or agent will make medical decisions for you if you cannot communicate.

Remember that the medical power of attorney only names the person you wish to be your proxy and doesn’t outline your wishes. You’ll need to create a living will to document your wishes. Once you’ve documented your wishes, you can share them with your healthcare proxy so they know what decisions to make.

Who can I nominate as my healthcare proxy?

While every state has its own regulations regarding healthcare proxies, in most cases, your proxy must be over 18. Most people nominate their spouse or a family member, but you can nominate anyone you trust, like a close friend or your lawyer. It’s highly recommended not to select your healthcare provider as your proxy.

As you consider who to select as your healthcare proxy, look for someone you feel comfortable communicating your wishes to. Your proxy should be someone you trust to follow your wishes, even if they don’t agree with them. Consider choosing someone who lives nearby or would be willing to travel to you if a situation arises.

Before adding your potential proxy to your power of attorney, talk to them about your wishes and ask them if they feel comfortable serving in this role. Keep in mind that a healthcare proxy is not the same as a guardian. If you don’t have a power of attorney in place when you are incapacitated, a court may appoint a guardian to act on your behalf. A healthcare proxy is only responsible for medical decisions, while a guardian can also make financial and legal decisions.

When does the healthcare power of attorney take effect?

Your healthcare proxy will only step in if you are incapacitated or unable to communicate. If you go into a coma or vegetative state, have an issue arise while under anesthesia, or are unable to speak, move, or write after a stroke or an accident, your healthcare proxy will make decisions on your behalf. Your proxy may make medical decisions if you are in the late stages of Alzheimer’s or another form of dementia.

As long as you are conscious, of sound mind, and able to communicate, you will have decision-making power, and your healthcare power of attorney will not be used.

What decisions can my healthcare proxy make?

If your healthcare power of attorney comes into effect, your proxy will have the authority to make medical decisions. This includes decisions about the care you receive, like surgeries, treatments, medication, pain relief, CPR, and more.

Additionally, your proxy can determine which healthcare providers and physicians you use. Your proxy also has authority over what facilities you visit for treatment, including nursing homes or assisted living facilities. They may make decisions about comfort care, hospice, mental health treatment, and organ donation as well.

In many cases, your healthcare proxy will need to coordinate with the agent you have listed on your financial power of attorney to ensure that medical costs can be covered. While your healthcare proxy should follow your living will, they aren’t legally required to. They may also need to make decisions about medical issues that aren’t mentioned in your living will.

How do I create a healthcare power of attorney?

While many online resources can help you create your healthcare power of attorney, the best course of action is to consult an estate planning lawyer. Each state has different regulations, and a lawyer can ensure your power of attorney is valid.

When creating your power of attorney, you must be of sound mind. Some states require you to have witnesses when you sign the form, while others require the document to be notarized. Depending on your state’s regulations, you may also need to have your proxy sign the forms.

Once your healthcare power of attorney is created, give a copy to your proxy and your medical provider. Keep the original document in a secure location, along with your other estate planning documents.

Can I revise my healthcare power of attorney?

Yes, you can! In fact, as your circumstances change, it’s important to keep your healthcare power of attorney up to date. Whether you move to a new state or want to change your proxy, you can change your power of attorney. Just like when you write your power of attorney, you must be of sound mind to change the document.

If you do make changes to your healthcare power of attorney, make sure to revoke or cancel your previous version. Depending on your state’s regulations and your specific situation, you may need to sign a revocation letter or include a clause in your new power of attorney revoking prior powers of attorney. Don’t forget to inform all pertinent parties (like your healthcare provider and proxy) of the change. It’s also a good idea to destroy any previous copies to prevent confusion.

As you make decisions about your medical wishes and healthcare proxy, don’t be afraid to ask for help from people you trust. And if there’s anything you’re unsure about, don’t hesitate to contact a local estate planning attorney. They can ensure that your wishes are documented in a valid way.

DISCLAIMER: Individual circumstances and state laws vary, so any estate planning should only be undertaken with the help and assistance of an attorney licensed in your state.