| How to Plan Your Estate, Part 2 |
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Consider getting a durable power of attorney so someone can sign documents for you if you are unavailable or incapacitated. If you don't have a durable power of attorney, a court can appoint a guardian for you if you become incompetent. However, this is often costly and time-consuming. If you need someone to look after your affairs, a durable power of attorney can be an inexpensive alternative. Be sure to complete the arrangements ahead of time before the need arises. Be cautious whom you appoint to act for you under your durable power of attorney. A durable power of attorney is a "blank check" that will typically allow your designee (called your agent or "attorney-in-fact") to clean you out. That person could have the power, for instance, to empty all your bank accounts and sell your house out from under you. To be prudent, you may want to consider giving this authority only to a spouse or a blood relative. Understand the difference between a will and a power of attorney. Your will has no effect while you live, but takes effect at your death. A power of attorney can be used to have someone act for you while you live, but becomes useless when you die. Have medical proxies prepared. In some states, medical proxies are called health care proxies or health care powers of attorney. These are used in addition to a living will and are recommended to most people who want a living will. Living wills and medical proxies are collectively called "advance directives" because they offer guidance on patient health care before the need arises. Understand the difference between medical proxies and a durable power of attorney. No matter what name they go by, medical proxies are usually limited to medical matters while a durable power of attorney may be limited to financial and business matters. Lawyers often recommend that the two should not overlap. If you want a durable power of attorney to qualify as a medical proxy, consult with qualified legal counsel. Understand the difference between living wills and medical proxies. A living will can express your wish not to be kept alive by heroic measures (typically if you are in a persistent vegetative state), but by themselves, living wills aren't always honored. Medical proxies appoint someone to act on your behalf in medical matters, including the crucial task of hiring and firing physicians. If your doctor won't respect your wishes under the terms of your living will, your agent under your medical proxy can typically replace that physician with one who will carry out your stated wishes. |
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