Archives for February 2015

What is an advance healthcare directive?

An advance healthcare directive is a living will coupled with a power of attorney.

A living will is a legal document that expresses an individual’s desires about what healthcare and treatment the individual would like to receive should he or she become incapacitated and unable to communicate due to an injury or illness. A power of attorney gives an individual the right to make medical decisions on your behalf.

What does an advance healthcare directive do?

As the default medical action is to keep the incapacitated individual on life support, an advance healthcare directive typically limits or eliminates life support.

Who makes medical decisions for me if I don’t have an advance healthcare directive?

Medical decisions, for those who cannot make their own decisions, are usually made by a close relative—a spouse, parents, adult children, siblings, etc. The problem arises when there is a disagreement among these people about how you should be cared for. An advance healthcare directive eliminates the need for arguments and disagreements in your family since you’ve already made an undisputable decision.

Another major benefit of an advance healthcare directive is that it keeps loved ones from having to make extremely difficult, and possibly divisive, decisions on your behalf.

Should I have an advance healthcare directive?

Making decisions about what type of medical treatment you would like to receive in a situation that calls for an advance healthcare directive is a very personal decision that has a direct impact on those closest to you. Concerns about quality of life, possibility of regaining consciousness, and the financial, physical, and emotional burden on loved ones are all factors that should be weighed in making a decision about an advance healthcare directive.

Can I change my mind once I have an advance healthcare directive?

Yes. You can easily change or even revoke an advance healthcare directive prior to becoming incapacitated. Simply contact the attorney or website that helped you create your advance healthcare directive.

How do I get an advance healthcare directive?

There are two primary ways to get an advance healthcare directive: You can either contact an experienced estate planning attorney who will work with you to create the document you want, or there are a number of online resources that provide the necessary documents that you can fill out on your own.

For help with an advance healthcare directive or other estate planning needs, contact David Knecht, davidknechtlaw.com.

A trust is a legal arrangement that gives a third party (the “trustee”) the right to hold assets for the grantor.

 

What does a trust do?

A trust holds assets until a specified event occurs (usually death), at which time those assets can be distributed according to the grantor’s specific instructions.

 

What are the benefits of a trust?

One of the greatest benefits of a trust is that, unlike a will, a trust allows the grantor to distribute his or her assets without probate (the legal process that establishes the validity of a will). Not having to go through probate saves time, court fees, and could save money on estate taxes.

Trusts may also allow greater control over the distribution of one’s assets than using a will. Trusts are also kept private, so if the grantor doesn’t want his or her assets to be made publicly known, then a trust is an attractive alternative to a will. A trust can also manage assets if they are given to someone who is unable to manage them on his or her own (minor children, or inexperienced or incapacitated individuals, for example).

 

What types of trusts are there?

There are many different types of trusts: marital trusts, bypass trusts, charitable trusts, and generation-skipping trusts to name a few. However, one of the key distinctions between the types of trusts is whether they are revocable or irrevocable.

• Revocable trusts (sometimes called a “living trust”) are still under the control of the grantor. This means the grantor can make changes or revoke the trust during his or her lifetime. This type of trust still has the benefit of maybe helping to bypass some of the requirements of probate, but estate taxes will probably still have to be paid.
• Irrevocable trusts essentially transfer ownership of the assets to another person or entity. The idea is that you can potentially bypass probate and estate taxes. This type of trust is more effective at avoiding estate taxes, but the grantor loses control over the assets and cannot modify or revoke the trust.

 

How do I get a trust?

Because of the large number of both state and federal laws regulating trusts, it is advisable to hire an experienced estate planning attorney who can navigate the legal requirements for you and help you create the best estate plan for your unique needs.

David Knecht at davidknechtlaw.com can help you with your estate planning questions and needs.

What is a Power of Attorney document?

A Power of Attorney (or “POA”) document grants legal authority for an individual (called the “agent”) to act on behalf of another individual (called the “principal”). These documents are typically used to allow the agent to make financial and medical decisions for the principal, especially if the principal has become mentally incapacitated.

 

Do I need a Power of Attorney document?

If you want to be sure that someone with your best interests at heart will be making decisions on your behalf should you ever become mentally incapacitated, then the answer is yes. While some causes of mental incapacity can be foreseen (like certain illnesses, or even old age), many cannot. A sudden car accident that results in a brain injury, for example, can render an individual incapable of making simple life decisions, let alone important medical or financial decisions. To protect yourself and your assets in the case of an accident, or any other cause of mental incapacity, it is a good idea to have a POA document.

 

What types of Power of Attorney are there?

There are several different types of POA. These are some of the more common types:

• General – A general POA gives the agent the authority to act on behalf of the principal, but only while the principal is mentally competent
• Durable – A durable POA gives the agent the authority to act on behalf of the principal, and this authority continues even if the principal becomes mentally incompetent
• Springing – A springing POA gives the agent the authority to act on behalf of the principal, but only when the principal becomes mentally incompetent, or some other specified event or circumstance occurs
• Health Care – A health care POA gives the agent the authority to make medical decisions (and only medical decisions) on behalf of the principal; it can either be durable or springing.

 

How do I get a Power of Attorney?

• The first step is to determine what type of POA you would like.
• Next, you need to decide whom you would like to be your agent. This should be a person you can trust to always act in your best interest. Often a spouse, sibling, child, or close friend is chosen.
• Then you must fill out the appropriate POA paperwork. For this paperwork to take effect, it must be signed by the agent, the principal, and either two witnesses or be acknowledged before a notary public.

 

Can I change or terminate a Power of Attorney?

Yes, you can modify or even terminate your Power of Attorney. To do so, you need to fill out a Revocation of Power of Attorney form and you must provide notice of the change or termination to your previous agent.

 

Who can help me fill out the right Power of Attorney documents?

For more information on Power of Attorney documents or for assistance in Estate Planning, contact David Knecht at davidknechtlaw.com.