No matter what your age, trust and estate planning is a key component to planning for the future. Whether an estate is simple, complex, or somewhere in between, when faced with the often-complicated and confusing decisions that may arise during stressful and traumatic times in your life, being prepared can bring peace of mind.

There are five core estate planning documents that are important to have in place: wills, trusts, durable powers of attorney, health care proxies and the Health Insurance Portability and Accountability Act of 1996 (HIPAA) form.

Wills

A will is a legal document that allows a person to dictate what will happen to his or her property and assets after death. A will enables an individual to appoint an executor who will manage their estate and oversee the distribution of assets according to the instructions outlined in the document. A will can also designate a guardian or guardians for any minor children, and appoint a trustee or trustees for any trust set up in the will.

Contrary to what many people think, you don’t need to be wealthy to have a will. In fact, no matter what your financial situation is, having a will not only ensures that your wishes are respected after you die, but it can also reduce stress and tension for your loved ones.

Trusts

A trust is a legal tool where a person transfers assets to someone they trust (called a trustee) to manage and use the assets for the benefit of others (the beneficiaries). You, as the person creating the trust (the grantor), set the rules for how the assets should be handled and distributed.

A trust may be created for many reasons, including managing the timing of asset distribution or providing oversight of assets for beneficiaries who may not be able to handle assets due to age, incapacity, disability, or other factors. Additionally, a trust helps to avoid probate, maintains privacy, and can provide some tax advantages and asset protection.

Durable Powers of Attorney

A Durable Power of Attorney (DPOA) allows an individual (called the principal) to appoint someone they trust to handle their financial and business affairs. The key feature of a DPOA is that it remains in effect even if the principal becomes incapacitated or unable to make decisions for themselves. A DPOA is an essential part of an estate plan, as it ensures that financial decisions can still be made if the principal cannot act independently due to illness, injury, or incapacity.

Taking this step can help you and your family avoid financial disaster by assigning a responsible party to manage your finances and business affairs.

Health Care Proxies

In the event that you are incapable of making health care decisions, you will probably want a trusted family member or friend to make these decisions for you. One way to ensure that your wishes are respected is to appoint a health care proxy. Without a proxy, these decisions will either be made in accordance with state law or by someone who has been appointed your guardian by the courts.

Even if you are in good health now, accidents can happen at any time, so it’s never too early to start planning. Anyone over the age of 18 can appoint a health care proxy.

HIPAA

Health Insurance Portability and Accountability Act of 1996 (HIPPA) is a federal law that sets rules for health care providers and health insurance companies about who can look at and receive individuals’ health information. HIPAA provides individuals rights over their health information, including the right to get a copy of their information, make sure it is correct, and know who has seen it.

Individuals can obtain HIPAA release forms from an attorney or their medical provider, which authorizes specific individuals to access their protected health information. This form allows trusted individuals to access the information necessary to assist with your medical care.Start Planning Today

It’s never too early — or late — to prepare your trust and estate documents, and with the help of an experienced attorney, you’ll achieve peace of mind for yourself and help secure your family’s future.

At Tully Rinckey PLLC, our lawyers can help you draft your estate planning documents, or make modifications to the ones you already have. Our attorneys have years of experience in estate planning, and are ready to provide competent, compassionate, and affordable service. Contact us 8885294543 for a consultation today!

As Senior Counsel at Tully Rinckey, Marlee Stever, Esq. provides legal counsel in the areas of estate planning, trust administration, probate administration, guardianships, conservatorships, and estate tax matters. With a robust background in crafting comprehensive estate plans, Marlee focuses on developing strategies that protect clients’ assets and ensure financial stability for future generations.