What you need to know about advance directives
Estate planning is all about balancing the uncertainty of life with the certainty that, one day, our life will end. Some documents in your estate plan will address your wishes for what should happen after you pass away, such as a last will and testament outlining who should benefit from your assets. Other estate planning documents are in place to address situations that may occur while you are still living, like a living will and healthcare power of attorney. These types of documents are known as “advance directives.”
A lot of people have questions about advance directives, the first of which is often “what are they?” Read on to understand more about advance directives, their role in estate planning, and why it is essential for you to complete these documents as soon as possible.
What is an advance directive?
Advance directives are documents outlining your wishes for what should happen if you become incapacitated and unable to make decisions for yourself. There are several different types of advance directives, with the most common being the living will, healthcare power of attorney, and financial power of attorney. All three documents are essential to your estate plan.
Living Wills
A living will, also referred to as a Declaration to Physicians, outlines whether you would or would not want to continue life-sustaining treatment if you are in a terminal condition or persistent vegetative state with no chance of recovering. In the State of Wisconsin, the determination of this state must be made by two physicians, or made by one physician’s assistant or advanced practice registered nurse and agreed upon by a physician. This document also covers your wishes of whether or not you would want a feeding tube used under the same circumstances.
Healthcare Powers of Attorney
A Healthcare Power of Attorney may, at first glance, seem similar to a Living Will, but they are unique documents and both important in a comprehensive estate plan. A Healthcare Power of Attorney allows you to designate a person, called an agent, to make healthcare decisions on your behalf should you become unable to do so for yourself. This agent is authorized under the Healthcare Power of Attorney to not only make decisions on your behalf about end-of-life treatment, but to make any medical decision. This document also outlines your wishes about whether you want to make anatomical gifts (donating organs or donating your body for scientific study) upon your death.
The person you choose as an agent should have a thorough understanding of your beliefs, culture, and values when it comes to provision of healthcare. This warrants a serious and detailed conversation that should be had as soon as you decide to make this person your agent. You can always change who you have designated as your agent and name a backup in case your agent is unable to fulfill their duties.
One of the reasons everyone should have a Healthcare Power of Attorney is because we no longer live in a world where it is common for people to have a physician who knows them well enough to understand what healthcare decisions they would make for themselves. Even if you are close with your family doctor, they may not be the one attending you under these circumstances. The bottom line is: a Healthcare Power of Attorney is not just nice to have – it’s an essential part of your estate plan.
Financial Powers of Attorney
A Financial Power of Attorney allows you to name an agent who can oversee your finances and property and make related decisions should you become incapacitated and unable to do these things for yourself. The person you choose to fill this role should be someone you trust wholeheartedly and someone who is detail-oriented and good with money. Once again, it’s imperative that you sit down with this person and walk through your wishes and expectations for what should happen with your finances and property as soon as you name them as your agent.
Sometimes, the person named as agent in the Healthcare Power of Attorney and Financial Power of Attorney are the same, but they do not have to be. Again, you can name a successor in case your primary agent is unable to fulfill their duties and can change who you want your agent to be at any time.
Estate planning is about so much more than creating a last will and testament. Life is uncertain, and preparing for the future includes preparing for things that may not happen but, if they did, would have a profound impact on your life and that of your family. Advance directives allow you some control over these mostly uncontrollable possibilities and will make life much easier for you and your family should something happen to you.
I’m Paul Margerie, an experienced estate planning lawyer helping individuals and families in Milwaukee, Brookfield, Wauwatosa, Elm Grove, Waukesha, and surrounding communities with powers of attorney, trusts, wills, and more. Give me a call today to get started.