Last week I told you there were more documents in your estate plan than just a will. This week, I want to explain some of these documents to you.

1. Last Will and Testament: Let’s start with the one everyone knows. You have heard of a will. This is the document that tells the probate court and your heirs (the people you want to give your stuff to) how you want everything distributed once you are gone. I want to go into the terms you may not know that your Estate Planning Attorney will throw around (as if you do know). You are the testator. You are the person who wrote/published the will. You name an executor, who is basically the boss of your estate. Choose this person carefully, because the executor has a lot of work to do. The executor will change all of your bank accounts into accounts owned by the estate, they will switch the title of your house, start the whole probate process, and eventually divvy everything up according to your wishes.

If your will creates a trust, then you will name trustees, who are the boss of your trusts, and will divvy up those assets over years to come according to your wishes.

If you have children, you will name a guardian to care for them. You may have asked a friend to be a “God Parent”. Many people believe this allows them to become the guardian of your child at your death. This is not a legal thing. A God Parent is a person you hope will lead your child to God, not a legal guardian. If you want that person to be the legal guardian, you need to put it in your Will.

Your will tells people if you would like to be buried or cremated. This document should be reviewed every 7-10 years as your life evolves and changes, so should your Will. Contrary to popular belief and TV, you cannot just write your will on a piece of paper. Depending on the state this will not be recognized. You need people to witness your signature, and it needs to be much more formal. Also, verbally telling people things will not hold up in court.

I like to add a sentence in the Wills I help create that says something like, “attached you will find a document dividing up my personal items”. This you can hand write and as you think of people you want to get certain personal items, you can add to the list, and erase from the list without having an attorney rewrite everything. This is is sometimes called a letter of intent, and will further give guidance on your assets and desires.

2. Power of Attorney: This is a document giving an agent that you designate the power to basically be you. There are two types. In a Springing POA, if you are to become incapacitated, if you are in a coma, or not in the mind where you can handle your financial situation & your legal affairs, your agent “springs” into action. They can take over for you only if you can’t do it yourself. They can access your bank accounts, your credit cards, basically anything financially related to you, so they can pay your bills and keep things going without your signature. Another type is Durable POA. This person can act for you from the moment you sign the document. Even though you are able to handle your affairs, they can too. This is good for a spouse, or a family member if you are leaving the country, or if you can’t be at a contract signing then you can send them in your place.

3. Advance Health Care Directive: This document is state specific and you can google it for your state and fill it out without the help of an attorney. If an attorney is preparing your other documents, let them do this too, but if you need one in a pinch (ex. before a medical procedure) then you can set this up for yourself and give a copy to your family and your doctor. This document gives direction on your health if you are unable to advise. This is the document that unplugs machines, or removes feeding tubes, or keeps you alive forever. It also will appoint a health care agent who can make decisions regarding health care for you.

I know this is a lot of information (most of which is kind of depressing). There is still much more to come. For example, I left out what exactly a Trust is and how to/why set that up. These documents are your BIG Three. It is important to know that quite a bit of planning goes into your legacy. My next post will be more in-depth on how all of these documents work to ensure your desires are transferred accordingly. We will also get a bit deeper into trusts.