Estate planning involves more than just the distribution of financial assets, and a lot of young people may not take that into consideration. The topic of health care has been in the news a lot during the last few years, and there was considerable debate recently concerning what life-extending procedures may or may not be allowed under proposed legislation. The fact is that each one of us has the ability to state our personal preferences concerning what medical procedures we would approve and of which ones we would prefer to eschew. This is done through the execution of a living will, something that everyone of every age should consider. We never know what may befall us on any given day and few of us want to leave those types of decisions in the hands of the state.

Living wills are very useful instruments, but it can be difficult to address every possible medical scenario within a single document. Another way to proceed is to execute a health care proxy or medical power of attorney. A medical power of attorney is a document that is used to authorize someone of your choosing to make medical decisions for you if at some point you cannot make them for yourself. Presumably you would select someone who understands your wishes in a general sense and would act in the same manner that you would if you were able to speak for yourself.

It is not hard to understand why young people who are full of life may not consider matters such as these. But the fact is that accidents do happen, and there are tens of thousands of fatal accidents each year on the roadways alone. Taking the time to address these issues and make sure a plan is in place is the mature choice for people of all ages. It’s very likely that young adults will live a long and healthy life and have to revisit their estate plans in the future. But it is nice to know that your wishes will be carried out and that your loved ones will not be left to make agonizing choices without your input should sudden tragedy befall you.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Estate planning is just a portion of the practice of elder law, and as we live longer it is important to make comprehensive plans to address any eventuality. The realities of after-death planning are evident, involving the recording of wishes that will hold sway after you are no longer around to make individual, ongoing decisions. However, there may come a time when you are still alive but unable to make medical decisions and conduct your financial affairs, and preparing for this possibility is what incapacity planning is all about.

The medical side of incapacity planning is addressed through the execution of advance health care directives like living wills and medical powers of attorney or health care proxies. Living wills are documents that elucidate your medical preferences, commonly applied to issues of life support in situations involving irreversible terminal illnesses. Heath care proxies give the power to make medical decisions on your behalf to an individual of your choosing in the event of your incapacitation.

Incapacity planning with financial matters in mind is usually achieved through the execution of a durable power of attorney, or in some jurisdictions a springing durable power of attorney can be used. Unlike a standard power of attorney, the durable power of attorney remains in effect after the incapacitation of the principal. The springing durable power of attorney gives the agent or attorney-in-fact the right to act on behalf of the principal only in the event of his or her incapacitation. The potential problem with the springing variety is that the definition of incapacity can be brought into question by a financial institution and a legal challenge could ensue.

Clearly, there are a lot of things to consider when you are constructing your estate, and making provisions for the possibility of incapacitation is one of them. To learn more about the specifics of incapacity planning, please feel free to contact us at (800) 295-1917 to arrange for a free consultation.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

A Power of Attorney is a legal document that allows you to give someone else the ability to act on your behalf.

The most common example of this is the General Power of Attorney that enables your named agent to conduct negotiations and sign documents in real estate or business matters in your stead.

But in estate planning, the Power of Attorney takes on a very different role.

You can use Powers of Attorney to enable someone to speak on your behalf with regard to medical treatments, for example or to designate someone to pay your bills if you become incapacitated.

And this is where a Springing Power of Attorney can come in handy.

A General Power of Attorney is automatically revoked if you become mentally disabled. This ensures that someone does not suddenly have “free reign” if you suffer from a stroke or become otherwise incapacitated.

But if that were to happen, who would pay your bills? Who would handle your creditors? A Springing Power of Attorney grants these rights and only allows the POA to be effective if you suffer a disability.

So, as long as your mentally capable of handling your own affairs, the Power of Attorney lies dormant and the agent you’ve chosen has no authority at all. But should something happen to you and you’re no longer able to speak on your own behalf, a Springing Power of Attorney could ensure that your financial affairs continue to be handled appropriately.

To learn more about Powers of Attorney and planning for disability, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

While the Durable Power of Attorney is important and serves several useful functions, it does have its drawbacks and should be used in conjunction with other documents as part of your comprehensive estate plan.

Drawbacks of the Durable Power of Attorney include:

• Banks and other third parties are not required to recognize your Durable Power of Attorney. They’re allowed to have their own standards, requirements, and forms, and can reject your POA if they determine that it doesn’t measure up.
• It’s hard for people accepting the Power of Attorney to tell for sure whether or not it’s been revoked. This might contribute to their hesitancy to accept it. This isn’t a problem if your agent is dealing with a limited number of institutions or other parties who know your situation well, but issues could arise if your agent moves outside a certain circle.
• Granting an agent authority under a General POA can be like giving them carte blanche to control your assets. This is not a problem if you have complete trust and confidence in your agent. However, an agent who’s not worthy of your trust can wreak havoc with your finances.

Your Durable Power of Attorney should be carefully drafted, and you should carefully consider your choice of agent. Furthermore, your POA should be just one piece of a comprehensive estate plan that also includes a Will, an Advance Healthcare Directive, and possibly a Revocable Living Trust and other documents. Your estate planning attorney can help you decide what your estate plan should include and how best to ensure that your documents are honored.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

With names that sound so similar, you might think these two documents are basically the same thing. But while both can be an essential part of your estate plan, the two are used for very different purposes.

A Will is a legal document that you use to specify what will happen to your belongings after you die. With your Will, you appoint an Executor who will act on behalf of your estate during the probate process, ensuring that your final bills are paid and your property is distributed in accordance with your wishes. If you have minor children, you can also use your Will to name a guardian to oversee their care (assuming both parents have passed on), and you can name a trustee to manage finances on their behalf.

A Living Will on the other hand, is part of a set of legal documents called Advanced Medical Directives. These documents are used to protect you and your property in the event that you become incapacitated. The Living Will specifically addresses how you’d like to be treated in certain medical situations. For example, do you want mechanical breathing support, such as a ventilator? What about a feeding tube? Your Living Will can outline the types of life-sustaining measures you do – or don’t – want.

Another difference is that a Will has absolutely no legal effect until the time of your death, whereas a Living Will is just the opposite – it’s only effective while you’re still alive. Any attempt to put healthcare instructions in your Will would be useless, because not only is a Will not binding while you’re still alive, but often your loved ones don’t even begin looking for the Will until after your death.

Clearly, both documents serve an important purpose in the estate planning process. To learn more about what documents you might need in your estate plan, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.