5 essential estate planning documents regardless of your age, health or wealth

by Dave Voris, vice president, regional treasury management officer and Shannon Blount, vice president, senior personal trust officer, Horizon Bank

Every person, regardless of their age, health or wealth, should include five estate planning documents when setting up a financial plan. They include:

1. Durable power of attorney
2. Advance medical directives
3. A will
4. A letter of instruction
5. A living trust

The last document, a living trust, is not always necessary. However, it is included here because it is a vital component of many estate plans.

1. Durable power of attorney

A durable power of attorney (DPOA) can help protect your property in the event you become physically unable or mentally incompetent to handle financial matters. If no one is ready to look after your financial affairs when you cannot, your property may be wasted, abused, or lost. A DPOA allows you to authorize someone else to act on your behalf, so he or she can do things like pay everyday expenses, collect benefits, watch over your investments, and file taxes. There are two types of DPOAs:

• An immediate DPOA, which is effective immediately (this may be appropriate, for example, if you face a serious operation or illness).
• A springing DPOA, which is not effective unless you have become incapacitated.

2. Advance medical directives

Advance medical directives let others know what medical treatment you would want, or allows someone to make medical decisions for you, in the event you cannot express your wishes yourself.

If you do not have an advance medical directive, medical care providers must prolong your life using artificial means, if necessary. With today’s technology, physicians can sustain you for days and weeks (if not months or even years).

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