What is estate planning and why do I need it?
Estate planning involves taking a comprehensive look at your family, your health, and your finances and making informed decisions about your future. Since none of us know when our time on earth will come to an end, we need to plan now for events that could occur tomorrow. Failure to do so can leave your loved ones with unpleasant and unnecessary issues to resolve.
Many people under the age of 50 tend to make the assumption that they do not need to have estate planning documents, such as a Last Will and Testament, Durable Power of Attorney, Health Care Surrogate Designation, or Living Will. Nothing could be further from the truth! The moment a person turns 18, they should have a Durable Power of Attorney, Designation of Health Care Surrogate and Living Will in place. If they own any assets, they should have a Last Will and Testament prepared as well.
Other Commonly Asked Questions
Essential Planning Tools for Adults with Minor Children
Last Will and Testament
This document allows you to direct where your belongings (real estate, tangible personal property, bank accounts, etc.) will go upon your death, instead of allowing the state to make that determination for you. Don’t simply assume that your spouse will get it all. Under Florida law, if there are children involved the amount that your spouse receives depends on whether your surviving lineal descendants are also the lineal descendants of your surviving spouse, as opposed to your lineal descendants alone from a prior relationship.
Confused? Our firm can help you understand the importance of proper planning utilizing a Last Will and Testament. In other cases a Revocable or living Trust might be the right tool. Everyone’s situation is different, which is why a detailed, personal consultation is so very important.
Durable Power of Attorney (DPOA)
An extremely important and powerful document which allows your chosen “attorney-in-fact” or “agent” to handle a myriad of financial and legal matters on your behalf. This document is crucial in avoiding unwanted guardianship proceedings should you become mentally incapacitated. There was a major law change concerning power of attorney documents in the State of Florida effective October 2011, so it is imperative to make sure that you have an up to date DPOA document.
IMPORTANT TIP: Do not let your DPOA become “stale.” Many financial institutions will not accept a DPOA that is over one (1) year old. Our firm can prepare this document for you and assist you in understanding its uses in various circumstances.
Health Care Surrogate Designation
Choose the person(s) whom you trust the most to make educated medical decisions for you when you are unable to make them yourself. Don’t assume that your spouse or other family members can automatically make decisions for you. The Federal Health Insurance Portability and Accountability Act (HIPAA) has made this a very unsettled issue among healthcare providers. Make sure your document has appropriate HIPAA release language. Our firm can prepare this document for you. An important change in the law took place in October 2015, so it is always important to keep your documents up to date.
Living Will
If it is your desire to not be kept alive by artificial means when you are: (1) in the final stage of a terminal illness, (2) in a persistent vegetative state, or (3) suffering from an end-stage condition from which there is no reasonable medical probability of recovery, you need to have a living will in place. Make sure your document has appropriate HIPAA release language and that you have named someone to "stand in your shoes" when that time has come. Deciding on what measures to allow and which to avoid during your final days is not as simple as you think.
Pre-need Guardian Designation
Being prepared is always important, but that is especially true when it comes to your minor children. Should you and your spouse both die or become mentally incapacitated, this document makes clear to the Court whom you desire to be your children’s legal guardian.
Last Will and Testament
This document allows you to direct where your belongings (real estate, tangible personal property, bank accounts, etc.) will go upon your death, instead of allowing the state to make that determination for you. It must be properly witnessed and executed in accordance with Florida Statutes to be valid.
Essential Planning Tools for Senior Citizens
Durable Power of Attorney (DPOA)
An extremely important and powerful document which allows your chosen “attorney-in-fact” to handle a myriad of financial and legal matters on your behalf. This document is crucial in avoiding unwanted guardianship proceedings should you become mentally incapacitated. A major rewrite of the power of attorney statute became effective in October 2011. It is imperative to make sure that you have a document that is up to date.
IMPORTANT TIP: Do not let your DPOA become “stale.” Many financial institutions will not accept a DPOA that is over one (1) year old. This is because the older your document becomes, the greater the possibility that a revocation of the document has occurred. Financial institutions are often not willing to take that chance.
Health Care Surrogate Designation
Choose the person (s) whom you trust the most to make educated medical decisions for you when you are unable to make them yourself. Do not assume that your spouse or other family members can make decisions for you. The Federal Health Insurance Portability and Accountability Act (HIPAA) has made this a very unsettled issue among healthcare providers. Make sure your document has appropriate HIPAA release language. Our firm can prepare this document for you.
Living Will
If it is your desire to not be kept alive by artificial means when you are: (1) in a comatose state, (2) in a persistent vegetative state, or (3) suffering from an end-stage condition from which there is no reasonable medical probability of recovery, you need to have a living will in place. Make sure your document has appropriate HIPAA release language and that you have named someone to “stand in your shoes” for when that time has come. Deciding on what measures to allow and which to avoid during your final days is not as simple as you may think.
Medicaid Planning
As elder law is an important part of our practice, we can discuss with you the best way to plan for the future. An increasing number of senior citizens are spending their final years in assisted living facilities (ALF) and nursing homes. Help your family remain financially secure if this event occurs by becoming knowledgeable before the need arises.
IMPORTANT TIP: The time to plan is now. Medicaid currently has a five year “look back” period, which means they can look at your finances for the five years immediately preceding the date you apply for Medicaid. With the cost of ALFs and nursing home facilities ranging anywhere from $5,000.00 to $10,000.00 per month, advance planning is critical. Failure to plan ahead will most likely result in a denial of much needed benefits, and the rapid depletion of a modest estate.
