IN THIS ARTICLE
01/ Will
02/ Power of Attorney for Finances
03/ Power of Attorney for Health Care
04/ Living Will
What are the most important legal documents for seniors to have?
There are four of them: a Will, a Power of Attorney (POA) for Finances, a Power of Attorney (POA) for Health Care, and a Living Will.
Each of these documents has a distinct purpose and is a vehicle for you to express your wishes related to your financial assets and your health care, for when you are no longer in a position to do so.
Detailed below is information on how you can go about completing these documents (at least 2 of which you could do yourself, if you wanted). Having the important legal documents completed is especially important for women aging without a partner or children.
[Don’t forget about your digital assets.]
1. Will
A will is one of the most important legal documents for seniors to have. In this document you can express what you want to have happen to your money and material goods when you have passed away.
Even if you don’t have a lot of assets or worldly goods, without a will, the state (specifically, probate court) will be the one making the decisions about what happens to your money and property.
One key aspect of completing a will involves choosing an executor. An executor is your representative ensuring that your wishes, as expressed in your will, are followed.
An executor is tasked with distributing your assets to your beneficiaries, according to what you have specified, and to pay off any remaining debts.
Whom should you appoint to be your executor?
The key characteristics of a good executor are: someone who is responsible, whom you can trust, who is in good financial standing themselves and who has the patience to execute all the work that is required. It is also a good idea to appoint someone younger (at least as a successor executor).
If you are aging without a partner or children, choosing an executor is not always easy. There is not always an obvious person to choose. Sometimes a family member or very close friend can fill the role. If not, you can hire an attorney, bank or trust company, or accountant to fill this role.
How do you complete a Will anyway?
Your will does not have to be complicated and can be completed online through sites like RocketLawyer or Legal Zoom, to name a couple.
If your estate is more complicated or you just would prefer that an expert draft your will for you, you can consult an estate planning attorney. If you don’t have an attorney, you can find one through the National Association of Estate Planners & Councils.
2. Power of Attorney (POA) for Finances
Another of the most important legal documents to complete is a Power of Attorney for Finances.
The purpose of this document is to appoint someone who can act to make financial decisions for you, if you become incapacitated and can’t make these decisions for yourself.
In the event this happens, your agent or representative would have the authority to make financial decisions for you.
Note that, as with all powers of attorney, the authority of the appointed agent ends when the individual they are representing dies.
Whom Should You Appoint to be Your POA for Finances?
Similar to the characteristics you’d want in someone to be your executor, your POA for Finances should be a responsible adult, in good financial standing themselves, and most importantly, someone you trust.
How do you complete a POA for Finances?
Typically a POA for Finances document is drafted by an attorney. However, a POA for Finances is not always recognized by all financial institutions.
Many banks and brokerage houses, for example, want your wishes expressed on their own forms.
It is probably a good idea to inquire with your primary financial institutions, if they would recognize your POA for Finances or if they require another form or document to allow someone to act on your behalf.
3. Power of Attorney for Health Care
A Power of Attorney for Health Care is a critical document to complete in which you assign someone to make medical decisions for you in the event that you are incapacitated.
The person you appoint, your “agent” should be someone you believe will act in your best interest and who will carry out your healthcare wishes, even if it is contrary to their own beliefs.
For example, if you are terminally ill, will your agent honor your wishes to discontinue life support, even if it is counter to their religious beliefs?
Also, will your agent be a good advocate? Will they be willing to push to have your wishes carried out, even if it is not a popular decision with the doctors?
One of the most important and basic aspects of being an agent is that they are familiar with your medical wishes and what treatments you would, or would not, want.
Whom Should you appoint to be your Power of Attorney for Health Care?
As for whom to appoint… many people who do not have or want family members to fill this role turn to friends.
Sometimes friends agree to become Health Care Powers of Attorney for each other. Sometimes people without children ask a lawyer, extended family (a niece or nephew, for example) or a member of their faith community to act in this role.
If you are lucky enough to have more than one person you would trust to be your POA for Health Care, consider having a primary agent and adding a second person as a successor.
The successor can then act in the event the primary agent isn’t available or doesn’t want to act when the time comes.
For both a POA for Finances and POA for Health Care, some people clearly specify in the document, that the powers of the POA only go into effect, IF and ONLY IF they are incapacitated, as determined by a doctor. Your agent is then referred to as a “springing” power of attorney.
However, the addition of this language can sometimes hold up the process of your agent being allowed to act quickly on your behalf, should it be necessary.
If you trust the person you have appointed to be POA (if you don’t, appoint someone else), then adding this extra language shouldn’t be necessary.
The most important thing is for your agent to have a clear understanding of the conditions in which you want them to act, when you appoint them.
How do you complete a POA for Healthcare?
To complete a POA for Health Care document, an attorney is not necessary.
Most states have rather simple fill in the blank forms that consider individual state laws and are easily accessible online. You don’t have to use the form provided by your state, but it may be helpful to do so since health care providers in your state will likely be more familiar with it.
4. Living Will
Another of the most important legal documents for seniors to have is a Living Will.
A Living Will is a document in which you express your wishes in writing, regarding the medical care you would want, if you are ever in a terminal state or in a permanently unconscious condition.
A Living Will does not apply in situations where you are temporarily incapacitated, but are expected to recover.
Although you will, hopefully, have discussed your medical wishes with your agent (your POA for Health Care), having your wishes documented on paper is still a very good idea. It helps guide your Power of Attorney for Health Care in making critical decisions regarding medical treatment.
Note that your agent doesn’t actually have to follow your wishes, as spelled out in your Living Will (though hopefully the person you choose would do so).
A Living Will also offers the benefit of relieving your POA of any guilt or doubts on what to do, especially in a situation where their decisions will be hastening the end of your life or put another way, not prolonging your death.
A Living Will, together with a Power of Attorney for Health Care is often referred to as an Advance Directive.
How do you complete these forms? Do you need an attorney?
Like the POA for Health Care document, a Living Will does not require an attorney to complete.
Most states have rather simple fill in the blank forms that consider individual state laws and are easily accessible online.
You don’t have to use the form provided by your state, but it may be helpful to do so since health care providers in your state are more likely to be familiar with it.
You can find your state’s Advance Directives by clicking here.
Additionally, there is an Advance Directive booklet that is becoming more widely known and accepted called, the 5 Wishes, which prompts you to answer very specific questions about the care you would want in different situations.
Once you have finished filling out the documents, you will need to sign the papers in front of witnesses and possibly before a notary as well, depending on your state.
Where should the forms be kept?
Like anything else, unless your health care providers know the POA for Health Care and Living Will exist, it doesn’t do you any good.
You should give your doctors copies of your POA for Health Care and Living Will (Advance Directives) to keep in your medical records and your agent should be given the original.
If you have a planned procedure at the hospital, it’s a good idea to provide the hospital with the documents prior to admission.
If you have an emergency that results in you going to the hospital, the hospital staff likely won’t be aware of your Advance Directives until your POA for Health Care is there.
So there it is. The 4 most important legal documents for seniors to have. This is not meant to stress you out if you don’t have these documents completed yet. It is just a friendly nudge to get it done.
Completing the documents is a good idea for everyone, but critical for those without children or a spouse. If you have not appointed someone to act on your behalf, who will do it?
The bottom line is that having the documents completed means having a say in what will happen to you–your health, your person and your assets– in the event you are no longer able to make these decisions for yourself in the future.
