Many people fail to have the proper estate planning documents, so at a time of serious illness or death; there is uncertainty, which creates discourse and strife from which some families never recover.
According to Michael Chamberlain, CFP®, there are five documents you need to minimize confusion and conflict in your family:
- The Advanced Health Care Directive, a specific form that lists your health care preferences to be used at a time when you cannot communicate your wishes.
- Power of Attorney for Asset Management appoints those you trust to handle your financial affairs.
- HIPPA Release Form, to give others the ability to deal with insurance matters on your behalf.
- A Will to transfer your assets upon your death.
- A Living Trust is the preferred method of transferring assets upon death for many people, and may provide some estate tax benefits.