Don’t Leave A Mess When You Die: Prepare These 3 Documents Now

Bad news: there’s a non-zero chance you will die or be medically incapacitated in the next year.

Worse news: if you haven’t prepared, you’ll leave a gawdawful mess for your loved ones.

Good news: a couple hours is all you’ll need to prepare the 3 essential documents: your Health Care Power of Attorney, Durable Power of Attorney, and Last Will and Testament.

Since I just updated mine, this is fresh in my mind. Let’s talk about what these docs are for, what happens if you don’t have them, and how easy they are to prepare.

1. Health Care Power of Attorney

Your Health Care Power of Attorney (a.k.a. healthcare proxy) specifies the “proxy” you want to make medical decisions on your behalf when you’re medically incapacitated.

If you don’t name a proxy, your local laws will determine which of your family (spouse, children, parents, siblings) will serve as your proxy.

Don’t leave it up to the government. Choose the person you trust who’s willing to serve, and name them your proxy.

A Health Care Power of Attorney is a simple document. I banged out a legally valid one in 15 minutes on Rocket Lawyer. I answered a few simple questions, and the software did the rest. (It’s like legal Mad Libs!)

Follow-up step: document your medical care preferences for your proxy via an Advanced Care Directive a.k.a. Living Will. Don’t make them guess your wishes.

2. Durable Power of Attorney

Your Durable Power of Attorney specifies the “agent” you want to manage your financial and legal affairs when you’re incapacitated.

If you don’t name an agent, your finances (bill payments, bank balances, taxes, insurance claims, disability claims, etc.) will sit unmanaged until someone gets the courts to appoint a conservator for you.

Imagine how screwed up your finances could get with just 3 months of total neglect. That’s why you need a POA. Choose the person you trust who’s willing to serve, and make them your agent.

A Durable Power of Attorney is a simple document. I banged out a legally valid one in 15 minutes on Rocket Lawyer.

Follow-up step: document your finances for your agent via a financial inventory including accounts, insurance, bills, income payments, debts, taxes, etc. They can’t manage what they don’t know.

3. Last Will and Testament

Your Will specifies the “executor” you want to manage your financial and legal affairs when you’re dead, and how you want them to distribute your stuff .

If you don’t have a will, you have a will: the one-size-badly-fits-all kludge written by your government and managed — slowly and painfully — by the courts. (Just like if you don’t have a prenup, you have a prenup: your government’s.)

As your first step, consider naming beneficiaries for all your financial accounts. That way, those funds will be distributed quickly when you die, no will required, no muss no fuss.

A will can be a simple or complicated document, depending on your situation. If you’re married, own property, own a business, have extensive assets or other complicating factors, consider hiring an attorney (and maybe an accountant).

If like me your situation is simpler, you can bang out legally valid will in 30 minutes on Rocket Lawyer or a similar site. The hardest part might be deciding who gets what (though honestly, it’ll probably be facing the hard reality that you will die someday).

Follow-up step: your executor will need that financial inventory I mentioned earlier. They will need it to close up your accounts and find all your stuff to distribute it.

Wait, You’re Not Done Yet

Important: simply filling out and printing these documents does not count.

They’re not valid until you get them witnessed and/or notarized according to your local laws. Living in California, I got my healthcare proxy and POA notarized at the nearest UPS Store. I corralled 2 friends at a party to witness my will.

Keep your original signed/witnessed/notarized documents in a safe place. Email scanned copies to your proxy, agent, and executor, and tell them where to find the originals.

Depending on your local law, the copies may suffice for your proxy and agent. But your executor will almost certainly need the original of your will.

Two Things You Must Accept

From my experience, I realize I’m asking you to accept two things.

First, you are mortal. Ouch.

Second, this is just one of life’s “a stitch in time saves nine” tasks, where investing a few hours now avoids many hours of cost and hassle later.

My mom set the example. Years before her dementia took hold, she had all three documents prepared and in my hands. I was legally empowered to serve as her agent and proxy for four years, then as her executor for two.

Actually, that’s an excellent point. If you’re blessed to have your parents still with you, make sure they have all 3 docs in place, plus a living will and financial inventory. Then follow their example.

Commit in the comments: will you act on this? If so, how and by when? If not, what stands in your way?

Mindset, exercise, nutrition, sleep, relationships, passions, finances: the 7 Pillars of Thrivespan.

Thrive Now. For Life.