“Estate planning is an important and everlasting gift you can give your family.”
Suze Orman
True or false? Estate planning is only for the rich and powerful. After all, I don’t have anything of value, so I don’t need to worry about estate planning. These statements are false, of course.
The topic of wills, powers of attorney and advanced medical directives is not the most interesting of discussions, but it is extremely important. We all want to protect our families and put them in the best possible position in the event something happens to us, but we too often fail to act until it is too late.
Wills
What is a will? Your last will and testament is an important legal document that lays out what will happen to your property after your death. Even more crucial, your will identifies who will care for your minor children.
Why are wills important? Wills are important because if you die without one, the state where you live may direct what happens to your children and valuable possessions. State law will decide who gets what, and it may not be what you wanted. You have a power to control what happens to your children and possessions, but you must have a will, so your wishes are clearly known.
What happens to my children? The most important decision you make in a last will and testament is what happens to your children should you unexpectedly die. Sit down with your spouse or loved ones and discuss who is in the best position to care for your children. Discuss who you completely trust and who will make sound decisions on behalf of your children. Once you decide this, approach the individual you would like to care for your children and ensure he or she is willing to care for them. It is a huge responsibility, so ensure the person is fully capable of caring for your children and making major decisions on their behalf. It is best to give the individual who you ask time to think about your request before accepting.
May I revoke or change a will? You may revoke a will at any time. If you decide to revoke your will, obtain a new will with your updated wishes and then shred the old one. You may also change a will by adding a codicil. A codicil is an addendum to the original will. Depending on the changes you desire to make, however, it may be more beneficial to get a new will. Once you obtain the new will, shred the old one so there is no question as to which will is valid.
Powers of Attorney
What is a power of attorney? A power of attorney is a legal document that allows you to appoint another person to handle certain matters on your behalf. Matters include a wide variety of circumstances, such as shipping a car on your behalf, signing for an apartment on your behalf, handling banking transactions for you, etc. Powers of attorney are normally useful when you will be away from home for extended periods of time, such as deployments and lengthy field exercises.
What types of powers of attorney are there? There are two common types of powers of attorney, a general power of attorney and a special power of attorney. A general power of attorney is a broad legal document that gives numerous powers to another person. General powers of attorney should rarely be used due to the broad powers prescribed. Also, some businesses will not accept general powers of attorney and instead will require special powers of attorney or at times their own power of attorney document. A special power of attorney grants a specific power, such as selling your car for you while you are deployed. In this instance, the person you appoint may only sell your car for you and he may do nothing else in your name. The duration of the power of attorney should be as minimal as possible, such as limiting the power of attorney to ninety days to sell the car.
Who should you appoint to act on your behalf? You should only give a power of attorney to a person you entirely trust who will always act in your best interest. If you give a power of attorney to a friend, for example, to borrow money on your behalf, this is extremely powerful with enormous consequences. If your friend borrows $50,000 in your name and then skips town with the money, you will be liable to the lending institution to repay the money. Carefully consider the ramifications of who you appoint to act on your behalf before ever signing a power of attorney.
May I revoke a power of attorney? You have the right to revoke a power of attorney at any time. Revoke the power of attorney in writing and give a copy of the revocation to the person you appointed to act on your behalf. It is best to get the original power of attorney back and shred it.
Advanced Medical Directives
You have the legal and moral right to participate in your own medical decisions, including whether you desire treatment, even when your condition is life threatening. An advanced medical directive is a legal document that allows you to make your medical wishes known in the event you later become incapacitated and unable to participate in your medical decisions.
If you have an advanced medical directive, ensure you inform your physician and also provide a copy to your local hospital, so it is on file. This ensures your medical team has your written directives.
May I revoke or change an advanced medical directive? Yes, you may revoke the advanced medical directive immediately or if desired, you may make modifications to the directive. It is your legal document, so if your wishes change, you may certainly make changes to the directive or eliminate it all together.
Where Should I Keep Important Legal Papers, Such as Wills?
Store your important legal papers, including your will, in a fireproof box in your house. Ensure you notify the executor of your will where your will is located in the event it is needed. You should never store a will in a bank safety deposit box because if you die, your executor may not be able to easily access your will and a significant delay may result.
What to Do if You Need Help?
Wills, powers of attorney and advanced medical directives provide valuable protections to your family and you, so don’t put off getting these documents. If you need help with estate planning, contact the closest legal assistance office to schedule an appointment. Use the Armed Forces Legal Assistance website to locate your nearest legal assistance office.
Future Blogs
Be on the lookout for future blogs that will continue to discuss specific legal issues often encountered by servicemembers and military spouses. As always, this blog series will help to protect your family and you!
*Kerry L. Erisman is a military spouse, Dad of two awesome teenage boys, Army retiree after 28 years of active duty service, attorney, and Associate Professor with American Military University. He writes and teaches on important military spouse issues including leadership, critical thinking, and education. This blog is the seventh in a monthly series designed to inform military spouses of timely legal issues that may affect them and where to turn for assistance.