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Living wills have received a great deal
of attention due to the recent Terry Schiavo situation. Because her
end-of-life wishes were in dispute, family members battled each
other in the courts over her treatment and care. By having a proper
Living Will, you can avoid such confusion. But a Living Will doesn’t
ensure you have all your bases covered. There are other equally
important documents you must have in place.
A Living Will deals with end-of-life issues. But what if you’re
incapacitated—unable to make your own medical decisions-- for a
short time? Who makes medical decisions for you then? What if you’re
widowed, divorced or unmarried and you don’t have a spouse who can
legally make medical decisions when you can’t? A health care power
of attorney allows you to state whom you choose to make medical
decisions on your behalf should you not be able to make them
yourself. You can also list alternates, should your first choice be
unable or unwilling to serve.
A health care power of attorney is especially important for those
who have lost a spouse and have several living children. Often if
Mom or Dad become seriously ill, it’s the out-of-town child that
pushes to do everything they can to extend their parent’s life. The
last time they saw Mom, she was busy fixing Thanksgiving dinner. Now
that she’s in a coma, they have trouble grasping the concept that
Mom will never be the same again. And if Mom doesn’t wish to be
hooked up to machines for weeks on end, her out-of-town child might
not understand.
You can just imagine the kind of arguments that can arise when
children don’t agree on the proper care of their parent. You can
eliminate that situation by designating one child to be your
attorney-in-fact. Clearly state in writing through your Living Will
and your health care power of attorney, what your specific wishes
are. Communicate those to your children, especially your chosen
representative. Then if the time comes, you’ve greatly eliminated
any possible confusion and ambiguity.
A health care power of attorney is activated by your incompetence.
Incompetence is often determined based on the opinion of two
doctors. With the new HIPPA regulations, this can be a problem. For
instance, your doctors may not be willing to offer that opinion
citing HIPPA restrictions (HIPPAA does not restrict release of
information in those situations). So make sure your health care
power of attorney includes language authorizing the release of that
information.
With all the focus on health care and medical issues, many people
forget the practical financial issues that can arise when someone is
incapacitated. I’ve seen first hand situations where one spouse
develops dementia but still has assets in his or her name. The other
spouse is helpless to manage those assets or use them to help cover
their loved ones’ care. In these cases, the courts have to determine
guardianship, which is not only expensive, but emotionally draining
for the family.
All this can be avoided with a Durable Power of Attorney for assets.
In this document, you choose a representative to make financial
decisions on your behalf. You determine when you would like their
authority to begin. This makes it much easier to pay your bills,
file your taxes, manage your retirement accounts, etc. And again you
can list alternates in case something keeps your first choice from
serving.
If you have minor children, there’s one more document you really
must have. The Appointment of Guardian states your choice for who
will raise your children in the event of your death. The court still
has to make guardianship official, but this document will clearly
express your wishes. This document can help your kids avoid being
caught in a legal tug-of-war.
As the Terry Schiavo case shows us, these documents aren’t just for
the elderly. Having them in place will not only make it easier on
your loved ones should the unfortunate happen to you, but they will
also help ensure that you are properly cared for according to your
wishes.
Got questions? Feel free to ask me at www.guardingyourwealth.com.
I’m in the enviable position of not having to garner new clients and
I’d be glad to give you my unbiased opinion. Visit our web site to
read previously submitted questions and answers.
In addition to being a nationally syndicated columnist and Certified
Financial Planning Practitioner, Mr. Voudrie serves clients
nationwide using a proprietary money management system he's
personally developed.
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