Estate Planning Basics:  The Three Most Important Estate Planning Documents

People think that estate planning is only for rich people.  Everyone can benefit from estate planning.  So long as you are over the age of 18 years old, a little bit of estate planning goes a long way.  Below are the most important Estate Planning documents for every person:

1.       Power of Attorney for Healthcare.  The power of attorney for healthcare is a legal document that appoints a person (“agent”) to make healthcare decisions for you when you cannot make them for yourself because you are incapacitated.  One uninterested witness is needed to sign this document.  This could include your medical treatment, what facilities you can be placed in, and access to medical and mental health records. This only is in place if you are still alive.  If you are no longer living, your will, trust, or the laws of Illinois will dictate who can be your personal representative.

2.       Power of Attorney for Property.  The power of attorney for healthcare is a legal document that appoints a person (“agent”) to make financial decisions for you when you cannot make them for yourself because you are incapacitated.  This agent can be the same person as your Power of Attorney for Healthcare or can be a different person.  Financial decisions include accessing your bank accounts, financial transactions, loans, and filing taxes.  This document requires a notary and two uninterested witnesses.  Like the Power of Attorney for Healthcare, this document is only valid if you are still alive.  If you are no longer living, your will, trust, or the laws of Illinois will dictate who can be your personal representative.

3.       Last Will and Testament.  Your Last Will and Testament is a legal document that calls for the disposal of everything you own upon your death that you create while you are still alive and have capacity to sign this document.  If you have an old will, be sure to destroy it once you create a new will to avoid any confusion among your heirs.  Also, be sure that you appoint an executor and designate how you want your assets to be distributed.  Make sure that it waives a bond for your executor and also make sure that it is signed and witnessed by two people who are uninterested (meaning people who would not benefit from the will). 

These are only a few of the tools for estate planning.  There are many more.  If you would like to know more about estate planning, please call (312) 546-5077 or [email protected].

Thank you for reading.  Until we meet again, love one another.

Janice