Legal Matters
Most people think estate planning is about what happens after death. That is certainly part of it, but a complete plan also protects you during your lifetime. In fact, only one of the four foundational documents, the will, primarily operates after death. The other three become important if illness, injury, or incapacity prevents you from managing your own affairs. These documents are not only for older adults or people with substantial wealth. An unexpected accident or medical emergency can make them important at any age.
1. Last Will and Testament: A Last Will and Testament direct how property in your probate estate should be distributed. It also allows you to nominate the person who will administer your estate and, for parents of minor children, to nominate a guardian. Without a valid will, Alabama law will determine who receives probate property and who has priority to handle the estate. Also, your surviving spouse will not automatically inherit everything after your death.
2. Durable Power of Attorney: A durable power of attorney allows a trusted person, called your agent, to manage financial and legal matters on your behalf. Depending on the document, the agent may be able to pay bills, handle banking, manage real estate, work with insurance companies, address tax matters, or operate a business. The word “durable” is critical because it means the authority can continue even if you become incapacitated. Without this document, family members may have to seek a court-appointed conservatorship to manage your affairs, which is an expensive and lengthy process that could be avoided.
3. Advance Directive for Health Care: An advance directive for health care addresses medical decisions. It allows you to state your wishes concerning life-sustaining treatment and to name a health care proxy to make medical decisions for you if you cannot communicate or make informed decisions yourself. This document gives your family and medical providers guidance during an already difficult time and reduces the likelihood of conflict or uncertainty.
4. HIPAA Authorization: A HIPAA authorization allows the people you designate to receive protected medical information from doctors, hospitals, pharmacies, and other health care providers. It does not give them authority to make medical decisions; instead, it gives them access to information. This can be especially helpful when a family member needs to speak with providers, coordinate care, obtain records, or understand your condition. This situation could arise even before a health care proxy’s decision-making authority has been triggered.
These documents work together and are different pieces of your estate planning puzzle. The will addresses what happens after death, while the durable power of attorney, advance directive, and HIPAA authorization help protect you while you are alive. Every adult should have all four, review them after major life changes, and make sure the appropriate people know where the documents can be found. A relatively small amount of planning now can prevent delay, expense, and uncertainty later.
– Grady Carden, Esq.
Carden Legal Services
(205) 201-1297
[email protected]
www.CardenLegal.com
This article provides general educational information and is not a substitute for legal advice regarding a specific situation; it does not create an attorney-client relationship. No representation is made that the quality of the legal service to be performed is greater than the quality of service performed by other lawyers.
