Critical Estate Documents

Financial Documents

What does it do?	Joint Ownership Enables you to own property jointly with another person	Durable Power of Attorney Authorizes someone to handle legal and financial decisions if you become incapacitated	Living Trust Holds your belongings until your death
Can it authorize someone to handle your financial affairs if you are unable to communicate?	Generally, no		Generally, no
Can it specify how you want your belongings transferred after your death?	But only those belongings owned jointly	Generally, no
Is it private?
When does it go into effect?	As soon as joint ownership is recorded	Either immediately or upon a specific trigger event (such as your incapacity)	When the document is signed and the trust is funded
Does it require court involvement?	No	No	No

Health Care Documents

What does it do?	Living Will Provides specific instructions about medical care and artificial life support	Power of Attorney Authorizes someone to handle legal and financial decisions on your behalf	Power of Attorney for Health Care Authorizes someone to make health care decisions on your behalf
Can it outline your medical wishes if you are unable to communicate?		Generally, no	Generally, no, but it does authorize someone to make medical decisions on your behalf
Can it authorize someone to handle your financial affairs if you are unable to communicate?	Generally, no		Generally, no
Duration	No expiration; can be revised or revoked at any time	Depends on specifics in the document; can be revised or revoked at any time	Depends on specifics in the document; can be revoked or revised at any time
Is it private?
When does it go into effect?	Upon your incapacity	Either immediately or upon a specific trigger event (such as your incapacity)	Either immediately or upon a specific trigger event (such as your incapacity)

Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

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