It is a fact of life that everyone will eventually pass on. Unfortunately, too many people are uncomfortable with this subject and fail to take certain simple steps to protect themselves and their loved ones. In order to avoid lengthy and costly proceedings in the event you pass on before executing a Will, or to protect yourself and loved ones in the event you suffer a severe disability, you need to prepare ahead of time. There are four important documents we call the
“CORE 4” that should be prepared and executed by you, if you haven’t already done so.
These documents are a Will, Living Will, Healthcare Proxy, and Power of Attorney.
Will: This document sets forth how all of your assets will be distributed upon your death. If you were to die without a Will, your assets would be distributed pursuant to statute, under the laws of intestacy, which may include distributions to persons you wouldn’t have set forth in your Will.
A Living Will: This document puts the world, including your healthcare providers, on notice that you do not wish to be kept alive by extraordinary measures, if it is determined by your doctors that you would otherwise pass on.
You shall receive pain medicine to keep you comfortable, but it will be known that you do not want to prolong your life through extraordinary measures. Without a Living Will, it may be up to a Court to determine what your wishes are and whether to “unplug” you or not. Why let it get that far? In order for a Living Will to be valid, in the state of New York, you must have an executed Healthcare Proxy to go along with it.
A Healthcare Proxy: Is a document in which your spouse, or another individual close to you, is appointed as your health care agent. The responsibility of the Healthcare Proxy is solely to communicate your Living Will, and your wishes not to be kept alive by extraordinary measures, to your doctors and healthcare providers.
The Power of Attorney: Many people believe that the Will is the most important document listed here, however, in many instances, it is the Power of Attorney (“POA”) which is even more important.
This is because a Will only takes effect after you have passed on, but the POA comes into play while you are still alive.
If you suffer a severe injury or are otherwise incapacitated, decisions may have to be made on your behalf.
A POA allows you to appoint somebody very close to you, i.e. your spouse, with the power to act in your place to make decisions for you.
A perfect example of the importance of a POA is where a husband and wife have reciprocal POAs running to each other. If something happens to the husband or the wife, where that party is incapacitated, the other spouse can continue to operate and handle things as if there were no incapacity.
Real estate transactions, financial and business affairs can continue without interruption if an executed POA were in place. Many times, one spouse handles the finances and the other does not have access to bank accounts. With a POA, the spouse would be able to access those accounts, without delay, court proceedings or the expenses that go along with that.
These are the “CORE 4” documents that we believe everybody should have in place. If you do not already have these taken care of, you should see an attorney to help you with all the details involved as soon as possible. Please contact us at 516-227-6500 if you would like us to assist you.
Kreinces & Rosenberg, PC
www.kresq.com
900 Merchants Concourse
Suite 305
Westbury, NY 11590