Five Most Important Legal Documents for Effective Estate Planning

Easy Estate Planning Documents

Leave a Legacy with these 5 Estate Planning Documents

At Joseph L. Motta Co. our tagline is "Leave a Legacy, Not a Predicament," because we truly want to help people to avoid leaving their family a mess to unravel upon death. The passing of a loved one is already one of the most difficult things to cope with. Adding the confusion of probate and the administration of an estate that was not properly planned feels like the world is adding insult to injury for the loved one left trying to put together the pieces.  Having the right estate planning documents is one of the simplest ways to have a positive impact on your family's future. Proper planning ensures that your wishes will be followed and that your family will have less to worry about after you are gone.

Estate planning does not need to be difficult and Joseph L. Motta Co. begins each relationship with a free consultation to explain how simplistic having a few key documents can be. Here are the five legal documents, in order of priority, that we recommend everyone has in place:

1) Durable Power of Attorney

A durable power of attorney (POA) appoints one or more people to act for you on financial and legal matters in the event of your incapacity. Without it, if you become disabled or even unable to manage your affairs for a period of time, your finances could become disordered and your bills not paid, and this would create a greater burden on your family. They might have to go to court to seek the appointment of a conservator, which takes time and money, all of which can be avoided through this simple document that can be drafted by a local estate planning attorney like Joseph L. Motta in Avon Lake, Ohio.

2) Health Care Power of Attorney

Referred to in other States as health care proxy, Ohio uses the health care power of attorney (POA) similar to a durable power of attorney, to appoint an agent to make health care decisions for you when you can't do it for yourself, whether permanently or temporarily. Again, without this document in place, your family members might be forced to go to court to be appointed guardian. Include a medical directive to guide your agent in making decisions that best match your wishes.

3) HIPAA Release

While the health care power of attorney (POA) authorizes your agent to act for you on health care matters, you may only appoint one person at a time. It may be important for all of your family members to be able to communicate with health care providers. A broad HIPAA release -- named for the Health Insurance Portability and Accountability Act (HIPAA) of 1996 -- will permit medical personnel to share information with anyone and everyone you name, not limiting this function to your health care agent.

4) Will

Your will says who will get your property after your death. However, it's increasingly irrelevant for this purpose as most property passes outside of probate through joint ownership, beneficiary designations, and trusts. Yet your will is still important for two other reasons. First, if you have minor children, it permits you to name their guardians in the event you are not there to continue your parental role. Second, it allows you to pick your personal representative (also called an executor or executrix) to take care of everything having to do with your estate, including distributing your possessions, paying your final bills, filing your final tax return, and closing out your accounts. It's best that you choose who serves in this role. (Read post "Without a Will Aretha Franklin’s Estate Held Up in Probate Court")

5) Revocable Trust

A revocable trust is icing on the cake and becomes more important the older you get. It permits the person or people you name to manage your financial affairs for you as well as to avoid probate. You can name one or more people to serve as co-trustee with you so that you can work together on your finances. This allows them to seamlessly take over in the event of your incapacity. Revocable trusts are not as simple as the prior four documents because there are many options for how they can be structured and what happens with your property after your death. Drafting a trust is substantially more complicated, but also more nuanced, giving you more say about what happens to your assets.

Contact Joseph L. Motta, your local estate planning attorney, to get started on these five simple documents to create your estate plan now.

Local Estate Planning Attorney Drafts These 5 Documents for a Simple Estate Plan

At Joseph L. Motta, elder law and estate planning firm in Avon Lake, OH, we want to help you leave a legacy, rather than a predicament, when you pass. We understand that there can be myths around estate planning like it's too complex, it's too expensive or it's only for the wealthy, so explaining these five documents may help put things in perspective. Call 440-930-2826 to schedule a free consultation.

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