5 Legal Documents every caregiver needs

biyExXGATIf you think a relative may be at risk of dementia or some other disease that will affect their reasoning ability, there are 5 legal documents you should get that relative to complete while still able to do so. Otherwise, when you become that person’s caregiver, you will need to go to court to apply for guardianship and the right to make decisions on his behalf. That court application will typically take 6 – weeks and cost you thousands of dollars. If another family member contests your application, it will only take more time and cost even more money. Don’t wait too long or it might be too late. Your relative may no longer be competent to make these critical decisions.

The 5 advance directive documents are:

  1. A durable power of attorney – It gives you the right to make financial decisions for that relative. Those can be things like paying bills, selling property and making investments.
  2. A healthcare proxy – This gives you the right to make medical decisions on the incapacitated relative’s behalf. This can include things like what course of treatment to follow, which physician to choose and where treatment should be performed.
  3. A living will – This states the medical treatment the person wants, or doesn’t want, so the decisions have been made before you take over. They include things like whether medical personnel should try resuscitation if the person’s heart stops, whether heroic measures should be taken, whether pain killers should be administered, etc.
  4. A current will – If the person has an old will, it should be reviewed to make sure that it reflects his or her present wishes and circumstances. Perhaps the will was written several years ago and needs to be changed. The will should state what should happen to all assets after he or she is deceased.
  5. You might want to also consider a living trust.   A living trust can make it easier for your fiduciaries to manage those assets while following the instructions of an incapacitated or deceased person.

State laws vary so you might want to consult an attorney when preparing these documents. And for more information about advance directives and wills versus trusts, go to www.diesmart.com.

 

5 ideas to consider when doing estate planning

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If you have a spouse and family, you’ll probably leave everything to them.  However, if you don’t have a spouse or kids and you’ve been procrastinating doing your estate planning because you’re not sure what to do about all of your stuff, here are 5 ideas you should think about consider.  We found them in the Rapid City Journal.

  1. Consider leaving something to close friends, caregivers or anyone else who you are close to.
  2. Think about charities that are meaningful to you.  What organizations have goals that match your own?
  3. Think about where a donation could benefit your community.  There are places like libraries, volunteer fire departments, arts organizations that would welcome some extra funds.  What about giving a piece of art to a hospital or buying a park bench?
  4. Build relationships with people who share your interest in collections of antique, tools or other items.  Then you can pass along your collections to people who will appreciate them and remember you.
  5. Don’t wait until you’re gone.  Consider donating collections to museums or giving personal possessions that you value but don’t necessarily use to someone who would appreciate them.

For more information about estate planning, go to www.diesmart.com.

Who has your healthcare power of attorney?

A healthcare power of attorney is the document where you name the person who will make medical decisions on your behalf when you are unable to do so.  Equally as important as having this document is telling your family who it is and why.

A legal battle started a short while ago disputing whether Sumner Redstone,  the 92 year old titular leader of both CBS and Viacom (who earned a combined $24 million in compensation from the companies in fiscal 2014), still has the mental capacity to make informed decisions.

The suit was brought by Manuela Herzer, a former companion to Mr. Redstone.  The two dated between 1999 and 2001 and, according to her, still maintain a close relationship.  She was legally designated as the person to make Mr. Redstone’s medical decisions.  However, in October, new documents were executed that stripped her of this power and named, instead, Phillippe Dauman, Redstone’s longtime lawyer and CEO of Viacom.  In court filings, Ms. Herzer claims that Mr. Redstone does not have adequate mental capacity to replace her and has asked the court to make him undergo a medical evaluation to prove her point.

Most of us don’t earn $24 million dollars in one year and don’t have the kind of net worth of Sumner Redstone.  However, the point is still as valid for you and me as it is for him.  If you make changes in your healthcare power of attorney or other legal documents that relate to who can make decisions on your behalf, it’s a good idea to tell those involved so they will be aware of what you’ve done and why.

For more information about a healthcare power of attorney and other estate planning documents, go to www.diesmart.com.

Robert Holmes a Court’s big mistake

robert holmes a courtHis mistake is one people continue to make throughout the world.  They don’t make a will and die intestate.  About 50% of people say that they don’t have the time, don’t think they need one, don’t know how to get started, it’s too gruesome a topic to think about, they’re not going to die yet….or offer up many other excuses.

Robert Holmes a Court, who had built a $2 billion empire in Australia in the 1980’s, died suddenly at age 53 without a will.  Legend has it that he carried a will around in his briefcase for years…unsigned.  Regardless of whether this is true or not, what is a fact is that, because he did not have a valid will,  the legal wrangling to settle his estate took almost 20 years to resolve, seriously straining family relations in the process.

Two other blogs we found also discuss some of the problems that can occur if you don’t take the time to make a will.

http://www.trishparr.com/are-you-a-modern-day-scrooge/

http://www.lancasterlawblog.com/2015/10/articles/estate-planning/second-marriage-and-intestacy-dying-without-a-will/

There are two facts you can’t change:

1) You ARE going to die.

2) If you don’t have a will, the government will decide what happens to your estate.

If you have a $2 billion empire like Robert Holmes a Court, it may take you awhile to draft a will and the other documents you will need to protect your assets and ensure that they will be distributed the way you want them to be.  If you have an estate that is a little smaller, a simple will can be drawn up and executed very quickly.

Don’t let the government make important decisions about your estate for you.  Make the time and get your will prepared now.

For more information about dying intestate and will preparation, go to DieSmart.com.

Common mistakes when writing a will

Business ClipartEveryone is going to die; that’s a fact.  And everyone should have a will.  That’s another fact.  If you die without a will, the probate court will decide what happens to  your assets; you won’t.

My father died about 15 years ago.  He left a will he had prepared himself, typed on his old electric typewriter and had a few friends sign as witnesses.  I don’t know how he decided what to put in the will and the wording to use.  All I know is that after he died, when I tried to probate the will, there were some problems with it and it took a while to get them resolved.

If you don’t want to go to an attorney to have a will prepared that you know will be written properly, you should at least be aware of some common mistakes that you should avoid.

I recently came across a blog on findlaw.com that clearly describes 10 of the most common mistakes.  You should definitely read it so you don’t make the same mistakes my dad did.

For further information about wills, trusts, probate and end of life planning go to www.diesmart.com.