Estate planning attorneys often emphasize that there is no universal approach that works for everyone. The best strategy depends on individual circumstances, making it vital to work with a Nevada estate planning attorney who can tailor a plan to your unique needs.
While each estate plan is personalized, there are essential components that should generally be addressed. Let’s explore these key elements and how they contribute to an effective estate plan.
Many people assume that a will is the ideal document to express their final wishes. However, unless the situation is extremely simple, a will is often not the best choice.
One reason is that a will must go through probate, a legal process that is costly, time-consuming, and public. This means your family loses privacy, as probate records are accessible to anyone.
Additionally, a will typically facilitates lump-sum asset transfers unless it is paired with a testamentary trust. This can create challenges, especially if beneficiaries struggle with financial management.
Consider the specific needs of your heirs. For instance, individuals with special needs often rely on Medicaid and Supplemental Security Income (SSI). A direct inheritance through a will could disqualify them from these critical benefits. Instead, a special needs trust can be established to protect their eligibility while providing for their needs.
Trusts are not just for the wealthy. A Nevada estate planning attorney can help you explore various types of trusts to achieve your goals, whether it’s protecting assets, managing distributions, or addressing specific concerns.
Planning for the possibility of incapacity is a critical aspect of estate planning. Unfortunately, about one-third of individuals aged 85 and older develop Alzheimer’s disease, and other conditions can also lead to incapacity.
Without proper planning, a court may appoint a guardian to manage your affairs, leaving your fate in the hands of the state. To avoid this, you can name a financial representative in advance.
If you have a living trust, you can designate a disability trustee to manage the trust if you become incapacitated. Alternatively, a durable power of attorney for property allows you to appoint an agent to handle financial matters on your behalf.
Even if you have a trust, it’s wise to also have a durable power of attorney for property to manage assets not included in the trust. A Nevada estate planning attorney can help ensure these documents are properly prepared and aligned with your goals.
Advance directives are another essential part of a comprehensive estate plan. These documents ensure your medical wishes are respected if you are unable to communicate them yourself.
A living will allows you to specify your preferences regarding life-sustaining measures. You can also appoint a trusted person as your healthcare agent through a durable power of attorney for health care. This agent will make medical decisions on your behalf in situations not related to life-support.
Additionally, a HIPAA release form is crucial. It enables healthcare providers to share your medical information with the individuals you designate, ensuring your healthcare team and loved ones can collaborate effectively.
Want to learn more about estate planning and how a Nevada estate planning attorney can assist you? We offer free webinars to help you navigate the process. Visit our webinar page to see the schedule and register for a session.
Working with a qualified Nevada estate planning attorney ensures that your plan is tailored to your needs and protects your legacy. Take the first step today by learning about your options and creating a plan that gives you peace of mind.
Setting up a plan for possible disability is a vital part of estate planning. As you set forth your disability wishes, you will have the opportunity to determine how your medical and financial needs will be looked after if you become mentally incapacitated. There are many benefits to creating a separate financial and medical power of attorney.
By keeping your powers of attorney apart, you can choose different agents for each purpose. For example if your spouse is best with your finances but would have an emotionally hard time making medical choices for you, you can name your son as your health care agent instead. Even if you name the same agent for each purpose, you can name different backup agents in the event that your first choice becomes unavailable.
A medical power of attorney allows your health care agent to make medical choices for you and speak with your doctors. He or she can have as much power as you desire, within the guidelines provided by state law, which allows you to limit any choices you don't want your agent to make. You can also place limits upon your financial agent. This person may handle all or some of your financial and physical assets.
There is another major difference between the two. Your medical power of attorney will most likely not be used while you are healthy and able to make your own medical decisions. It is, however, quite common to use a financial power of attorney in everyday life. Such a power of attorney may allow one spouse to easily sign for another if that other spouse is unavailable for any reason.
If you choose to name separate agents for medical and financial purposes, using separate documents will help you to keep your medical and financial wishes private. Only the agent for each purpose will have access to your information. This is best if you intend to use a financial power of attorney during life, but don’t wish to share your medical wishes while you are healthy.
If you live in Reno, NV and are interested in creating a Power of Attorney, consult with the experts at Anderson, Dorn & Rader. Call (775) 823-9455 or fill out the form below.
