Necessary Documents to Complete your Estate Plan What do you need in Addition to a Will or a Trust?

Most everyone knows that they should have a Will or Trust to ensure that their property passes on to their loved ones consistent with their wishes. Not everyone knows that it is also important that your estate plan include a Power of Attorney and a Health Care Proxy. What is a Power of Attorney? A Power of Attorney (POA) is a legal document that allows another person, your “agent”, to act on your behalf with regard to your financial affairs. The POA allows you to choose which particular powers you give to your agent and which you do not. Who should I pick as my agent? People generally choose their spouse or a trusted family member or friend. You may also choose a successor if your first agent is unavailable. You may also pick more than one person to act at one time; however, you must choose if they need to act together or can act separately. Why is having a POA important? If your POA is “durable”, it will allow your agent to handle your affairs in the event you are no longer able to do so due to accident, illness, or other cause. Without a POA, someone would need to be appointed as a Guardian of your property by a court, which can be a complex and contentious process. Can I revoke my POA? POAs are revocable at any time. You should seek legal assistance to make your revocation effective, because a financial institution may still honor your POA if they haven’t received proper notice of its revocation. Does my agent have to sign the POA? Yes, for the agent to have the ability to act, they must also sign the POA. The agent’s signature is an acknowledgment that they understand that they must act in your best interest. I have a POA from ten years ago—is it still valid? As long as the POA was properly executed on a valid form at the time, the POA is still valid today. You should consider doing a new POA, however, because the statutory form changed in September 2010, and the new form is most recognized by financial institutions. What is a Health Care Proxy? A Health Care Proxy is a legal document that allows you to appoint an individual, your “agent”, to make medical decisions for you. It only becomes effective in the event that you are no longer able to make those decisions for yourself. If that time comes, your Health Care Proxy agent will ensure that your individual wishes are conveyed and adhered to by your health care providers. Do I need a Health Care Proxy? The simple answer is yes. You need a trusted person to be your voice in the event you are unable to make your own health care decisions. Any person over the age of eighteen (18) should appoint a health care agent. How do I choose an agent? Your agent should be someone you trust, for example a spouse, other family member, or trusted friend. You should choose someone that you believe will adhere to your wishes and instructions. A successor agent should be chosen in the event your primary agent is unable to act for any reason. It is imperative to discuss your wishes regarding your care, clearly and in detail, with your agent. Can I revoke my Health Care Proxy? Yes, you can revoke your Health Care Proxy at any time. How does a Health Care Proxy differ from a Power of Attorney? A Power of Attorney allows an agent to handle your financial affairs for you, but does not allow them to make health care decisions. A Health Care Proxy allows your agent to make health care decisions, but does not allow them to make financial decisions. What is the difference between a Living Will and a Health Care Proxy? A Living Will is a legal document that specifies your wishes regarding your medical care. A Living Will does not designate an agent, but can provide important guidance to your Health Care Proxy agent when decisions have to be made regarding your health care. A Living Will can be a separate document or can be integrated into your Health Care Proxy. Powers of Attorney and Health Care Proxies are important elements of your estate plan. If you do not have these documents in place and become incompetent, your loved ones may be faced with bringing a potentially expensive and difficult guardianship proceeding to obtain the necessary authority to handle your affairs. In order to properly prepare and execute these documents, you should seek the assistance of an experienced estate planning professional. Matthew J. Dorsey, Esq. is a Partner with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs, NY. Over his nineteen years of practice, he has focused in the areas of elder law, estate planning, and estate administration. Mr. Dorsey can be reached at (518)584-5205, This email address is being protected from spambots. You need JavaScript enabled to view it. and www.oalaw.com.