What is Estate Planning Trust
This is simply an estate planning tool used to transfer assets to your heirs, also known as beneficiaries, after your death. Once you have established an Estate Planning Trust, you can designate an individual or institution, known as a trustee, to manage the account for the benefit or your beneficiaries. Also, it is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.
Estate Planning Must For Chronic Illness
It is highly imperative to know the the estate planning documents to have when you or a loved one has a Chronic Illness or diseaee. These documents are considered a MUST because it helps not to relinguish your assets should anything happen when you fall ill. The article discusses these key estate planning documents, along with some suggestions that might help you rearrange them to your best challenges because of chronic illness. These documents might need to be altered to better serve your needs or address your challenges. It’s best to get your estate planning documents in place, soon after your diagnosis.
The Health Insurance Portability and Accountability Act of 1996 governs the requirements for maintaining the confidentiality of protected or personal health information (PHI). A HIPAA Release lets someone you trust access your protected health information.
This is a statement of your health care wishes and can address end of life decisions, as well as many other matters. If you’re living with a chronic illness, there are special considerations you might want to make in having a living will prepared. You might alter the general language to explain your specific disease. The fact that you’re living with disease doesn’t mean you might not face another health issue.
Health Care Proxy.
This is also known as a medical power of attorney. It is a legal document in which you designate a trusted person to make medical decisions for you, if you’re unable to do so. If your health challenges might result in your becoming incapacitated, you can say that the agent appointed under your health proxy is also to be named as your guardian of the person, should a guardianship proceeding ever happen. Although this may not be binding on the court, it may be persuasive.
Financial Power of Attorney.
This legal document lets you designate a trusted person to handle your legal, tax, and financial matters, if you can’t. There are some unique considerations for those living with chronic illnesses to consider. One is the amount of control that should be given up now or at what stage. Relinquish enough control, so you can be assisted to the degree necessary, but not more than you need at any point in time. Another characteristic for your powers of attorney is if you should sign a special power that restricts the agent’s authority to certain specified items or sign a general power that provides broad and almost unlimited powers to the agent.
A Revocable Trust.
A frequent goal of a revocable trust is to avoid the publicity, costs, and difficulties of probate. However, if you or a family member has a chronic illness, using a revocable trust may be a good way to provide for succession of management for your finances.
Estate Planning Documents for Those Living with Chronic Illness
If you or a loved one are living with one or more chronic illnesses you will likely need the same estate planning documents most people should have. However, those documents might need to be modified to better serve your needs, or address your challenges. If your chronic illness has progressed significantly, it might impede your ability to understand and hence sign the advisable legal documents. Therefore, it is likely to be safer for you to tackle getting documents and planning in place soon after your diagnosis.
Living Wills & Chronic Illness
A living will is a statement of your health care wishes. A living will address end-of-life decisions, along with other related medical factors. If you ever get to the point where you can’t physically or mentally make decisions about your health care, a living will can ensure that your wishes are always met. Depending on your situation, you might wish to address experimental treatments, drug therapies, and more. The health care facility would then follow the details in your living will to meet your specific requirements.
Medical Power of Attorney & Chronic Illness
A medical power of attorney is a legal document that helps you choose a trusted person or “agent” to make medical decisions for you if you are unable to do so. Unlike a living will, a medical power of attorney gives the agent the ability to make decisions about your health care procedures. Most people talk to their agents and express their wishes to help them make difficult decisions when you are unable to do so.
Financial Power of Attorney
A financial power of attorney is a legal document in which you choose a trusted person to handle legal, tax, and financial matters if you can’t do so. This is a basic legal document that everyone should have in their estate plan. There are many different types of powers of attorneys. For example, a springing power only becomes effective if you become disabled. The control would then be transferred to your agent if you become disabled. You can speak to an experienced estate planning attorney to determine which power of attorney would be beneficial for your unique situation.
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