Three by 33 – Part II

In my last post, I urged you to set a deadline for yourself to take care of your estate planning needs by the time you are 33. In this post, I will discuss the three most important estate planning documents you need to have by then.

1. General Durable Power of Attorney

A General Durable Power of Attorney is a document that you can use to give someone you trust, such as a friend or a family member, the authority to act legally on your behalf to handle your affairs when you are unable to do so. The trusted friend or relative you choose is your agent. It is advisable that you also choose a secondary agent just in case your primary agent is unable to handle your affairs when the time comes. A good General Durable Power of Attorney, prepared by a lawyer, is clear as to when your primary and secondary choices can act on your behalf, when their authority ceases, and the scope of their authority.

2. Durable Power of Attorney for Health Care Decisions

Similar to a General Durable Power of Attorney, you use the Durable Power of Attorney for Health Care Decisions to appoint someone you trust, the agent, to make medical decisions for you when you become unable to do so. Just like the General Durable Power of Attorney, you should always name a backup just in case your primary choice is unable or unwilling to provide assistance. A good Durable Power of Attorney for Health Care Decisions, prepared by a lawyer, is again clear as to when your agent has authority to act, and your agent’s scope of authority and ability to access private medical information.

3. Will

Most people think of a will as a means to distribute property. While this is true, a will can be used to address other issues as well. For parents and pet owners, making a will is the single most important thing you can do for your children or your pets to ensure they are cared for after you are gone. With a will, you can nominate guardians to take care of your children and also name successor caregivers to take care of your pets and provide them with the means to do so. You can also create testamentary trusts within your will, for both your children and your pets, to set up a good system for who will manage and distribute funds, and establish parameters for how those funds will be distributed. Without a will, and potentially an accompanying testamentary trust, your children and pets will be left with an uncertain future.

Thinking about these documents is a good start. Learning more about them is an excellent next step. Having these documents signed and sealed in your hands before 33 is an achievement! Get it done. Your kids, your pets, and your family will thank you. We would be happy to help you get started.

Photo credit: Teresa Qin on Flickr