1.  A will.  This document says who will inherit your property and possessions, and who will be your minor children’s guardian if you and their other parent have both died. It can also provide that life insurance proceeds and other assets will be transferred into a uniform trust for minors, to be used for your children’s care and education, if both parents have died.  This is the single most important legal document your family needs, and it can be short and to the point if your situation is simple. 

2.  An advance health care directive. It outlines what medical procedures you want taken if you are too ill or injured to state your wishes yourself.

3.  A health care power of attorney.  This permits your spouse / domestic partner to authorize medical treatment and receive medical updates for you if you are unconscious or too injured or ill to communicate.

4.  A Durable Financial Power of Attorney.  This allows your spouse or domestic partner to handle your finances and property if you become incapacitated. It is not appropriate for every couple, and it should never be given casually to other members of your family.

5.  A method for your spouse / domestic partner to avoid probate:

      a.  A revocable living trust  – if you own a house, brokerage accounts, and other assets, this document puts them into the name of your living trust, with you named as the trustee who has complete power to buy, sell, and transfer these assets as you wish.  Your spouse / domestic partner, another trusted person, or a bank trust department is named as the substitute trustee who can take over if you die or become incapacitated.

      b.  If you have few or no assets, you can get by with other legal mechanisms which will not help if you become incapacitated, but will help your spouse / domestic partner avoid probate if you die.  You can deed your home to a “tenancy by the entirety” of yourself and your spouse or a “joint tenancy with right of survivorship” of yourself and your domestic partner, and that person will automatically inherit all your interest if you die.  Vehicle titles can be placed in joint tenancy, and bank and brokerage accounts can either be owned jointly, or be made “payable on death” to your spouse / domestic partner or other person you choose.

6.  A letter of instruction. This provides funeral and other related instructions for your survivors.  It should also contain essential information they will need, such as the location of your key papers, your bank and brokerage account information, the name of your attorneys, and a contact list.  If you have a pet, this letter should include care instructions and your veterinarian’s name.

7.   Safe document storage:  keep signed copies of the above items at your attorney’s office and at your home in a fireproof box to which your spouse or domestic partner also has a key.  In addition to the above documents, your fireproof box should include copies of other financial and legal documents, such as a pet trust, life insurance policies, deeds, car titles, military records, birth and marriage certificates, divorce decrees, insurance policies, and real estate deeds, along with information about your bank and other accounts, retirement plan, any prepaid funeral plan, and long-term debts such as mortgages and car loans. This information is likely to be needed by your attorney and your executor, who must distribute your property and notify your creditors after you die.  

Call San Diego Law Firm for Legal Documents to Protect Your Family’s Future

Providing for your family’s future is a gift of love to those closest to you.  Making sure you and your spouse have basic legal safeguards in place can give you great peace of mind and make sure your family is fully protected if anything happens to you.  

San Diego Law Firm’s experienced will, trust, and probate attorneys can help you create a good plan to protect your family if you are no longer here. We prepare each will and trust document to fit your exact situation and your wishes, and we can readily update any documents you already have.  We can provide flat-fee estimates for all of our will and trust services once we know what your situation requires.  Please call us for an appointment at (619) 794-0243.  We look forward to helping you.

Decide if you want your agent’s powers to start now, or later

Just as important as what your agent can do is when they can do it.  A power of attorney can give your agent power right away, or hold off until a future event or condition happens.  We’ll explain the benefits and drawbacks with either option.  Your decision will depend on who you will name as your agent and your personal circumstances.

For example, take a look at the following scenarios:

      ●    Illness, Medical Conditions, or Accidents

You can have your power of attorney go into effect only if you lose the physical or mental capacity to make financial decisions, such as after an illness or accident. 

You may want to include a requirement that a doctor first determine the incapacity before your power of attorney can be used.  On the other hand, this delay can work against you in an emergency when a decision needs to be made immediately.  We’ll explain your options and take all of this into account when preparing your power of attorney. 

      ●    Temporary Absence

If you go on vacation without your kids, you may want to set up a special power of attorney for the time you’ll be away.  Even if you don’t have kids, if you’ll be gone for a long time you may need someone to manage your finances while you’re out of the country.

      ●    Spouses and Domestic Partners

Many spouses and domestic partners decide to make their powers of attorney effective immediately.  If you’re married or in a registered domestic partnership, you probably own most of your property together.  Even so, some transactions require authorization from both of you.  Also, some of your money and property may be in your name only, so you need the power of attorney to give your spouse access those assets if there’s an emergency. 

Make sure your power of attorney is done right

With years of experience behind us, your lawyer at San Diego Law Firm will create a power of attorney that follows California law and avoids the pitfalls of generic or poorly written powers of attorney.  That way, you can be much more confident that your power of attorney will be accepted by banks, investment firms, and others. 

An alternative to “Conservatorships”

Remember that if you lose capacity in the future, by creating a power of attorney you can decide who you would like to manage your finances.  This means that in many situations, a good power of attorney can help you avoid the need for a “conservatorship” down the road.  A conservatorship would require that a loved one go to court so that a judge can appoint someone to manage your finances and healthcare.

A properly written power of attorney – along with a similar document for your medical decisions (called an “advance health care directive“) – can help minimize family conflict.  While conservatorships can be necessary for some, many times a power of attorney is appropriate and can avoid the expense and time involved with creating a conservatorship in court. 

Also keep in mind that a living trust and a guardianship can do more than you think, because both can help you plan for possible incapacity.  Don’t miss your opportunity to plan for the future.  Reach San Diego Law Firm experienced estate planning lawyers at (619) 794-0243.

Choosing someone to manage your finances

Whoever you choose to handle your finances through your power of attorney is known as your “agent.”  If this person steps in because you aren’t able to manage your finances, then you’ll depend on your agent to keep things on the right track for you.

Most people choose a family member such as a spouse or domestic partner for the job, but you might also consider naming an advisor or someone else who you can trust. 

Not only do you need to trust them personally, but also ask yourself whether you can trust their judgment because they’ll be handling your finances.  For instance, will this person be responsible and reliable enough to carry out your daily tasks?  What’s more, you may want to name a back-up agent in case your first choice is no longer available. 

How much power will you give your agent?

So exactly what does a power of attorney let your agent do?  How much (or how little) your agent can do will depend on what’s included in your power of attorney document.  It’s all up to you, but you can only make good choices if you really know and understand the options. 

You don’t want to make the mistake of using a generic power of attorney form that doesn’t capture your wishes.  We’ll make sure your authorization is accurate, complete, and really reflects what you want.  California law allows you to authorize many different types of actions in your power of attorney.  Here are a few common examples of what you may want your agent to do for you:

    ●    Sign contracts and other documents on your behalf

    ●    Manage your bank accounts

    ●    Accept your government benefits for you

    ●    File your taxes

    ●    Buy or collect insurance

    ●    Write checks to pay your mortgage, medical expenses, and other bills

    ●    Manage your property and make repairs

    ●    Buy and sell real estate

    ●    Manage your business

    ●    Take steps to minimize any estate taxes that could be due when your property is inherited

    ●    Invest your money in stocks and bonds, and oversee your existing investments

Beware of the outdated power of attorney

On her blog, Financial Planning Mastered, certified financial planner Sue Quint warns that banks and financial companies are more likely to accept your power of attorney if you update it every so often.  The bank may be more likely to question the document and deny your agent access to your accounts if it’s dated too far back. 

By reviewing your power of attorney, you’ll also have the opportunity to make changes and you may even decide to name someone else as your agent.  We’ll help you cancel your old power of attorney and get a new one in place. 

You can learn more in Part 2 of this post about how a power of attorney works.  Also get information about what you can do now to protect yourself and your loved ones by speaking with an experienced estate planning attorney at San Diego Law Firm.  Reach us at (619) 794-0243.