Typically, wills are testamentary instruments. They only take effect after a person dies. As such, they provide protection for beneficiaries and others with an interest in the decedent’s estate. The decedent may have enjoyed peace of mind from knowing they could leave behind a meaningful legacy.
There are other documents that testators can add to their estate plans that help protect them directly and can offer support to their loved ones during difficult times. What supplemental documents are beneficial additions to estate plans?
1. Powers of attorney
People who experience personal emergencies may become incapable of expressing their medical preferences to others. They cannot pay their bills or manage their assets.
Powers of attorney (POAs) help ensure that there is a competent person to provide that support when an individual becomes incapacitated. Durable POAs could help in scenarios where people experience permanent incapacitation due to dementia or other incurable, debilitating conditions.
2. Living wills
Family members may fight over what they believe a loved one’s wishes were if they become incapacitated. One family member may insist that an individual wants any and all medical support possible, while another may insist they do not want to live on life support.
Living wills help clarify an individual’s preferences and reduce the risk of family members fighting over treatment choices. They can leave clear instructions about what care preferences the person has, which can be invaluable to those who must oversee their care in an emergency.
3. Trusts
Trusts can serve as testamentary instruments, much like wills. The right terms integrated into a trust can allow for the careful management of resources for years after a person passes.
Trusts can also protect individuals when they face legal challenges or health complications. Trusts can protect resources and prevent fighting among beneficiaries. They can also help people qualify for Medicaid as they age or limit the risk of estate taxes after they die.
Expanding an estate plan to include a variety of documents can help people optimize their legal protection. Thorough estate plans provide testators with peace of mind and their family members with clarity.