Basic Asset Protection: Three Things That Can Save You Thousands

asset protection

Life can change quickly and without notice.  While we hope it is for the better, one can take steps in the event the news is of an accident or illness.  There are at least three very basic documents that you should have in place for asset protection, so that your choices can be carried out if you are not able to articulate them.

1. The power of attorney for property.
This document allows a trusted person that you designate to act as your agent if you can not act for yourself with respect to  business and financial affairs. Some examples of this include attending to business and monetary transactions, maintaining accounts and operating property, such as for rental purposes. In a period of unexpected disability, your agent can assist in keeping these sorts of affairs in order.

2. The power of attorney for healthcare.
As the name implies, this document allows a trusted person that you designate to act as your agent if you can not act for yourself  with respect to healthcare decisions.  Among other things, it allows you to designate what care you would want and what you would not  accept.  And it allows you to specify whether the length or the quality of life is your primary objective.

3. The living will.
This document, in the event of terminal illness or incurable injury, allows a doctor to withdraw life-sustaining measures that are  artificially postponing death and instead administer measures to maximize comfort. The purpose is to articulate a choice to avoid being trapped in a painful situation prolonged indefinitely.

The savings.
The law provides certain defaults, but they may not be the ones you would choose. Getting relief once an emergency or disability has  already occurred can involve a long trek through the courts, resulting both in legal costs as well as the health care or financial costs affiliated with maintaining the status quo. And should a disaster hit, these costs can quickly rise into the thousands.

Clearly, these documents preserve values that can be deeply personal.  Whatever one’s choices, it is important to declare them rather than let the default choices provided by state law prevail.

For personal estate planning, the Will, rather than the documents above, comes to mind for many people. The Will is certainly an  important part of every estate plan, but it does not become operative until the person who executed it has died.  Powers of attorney and a living will protect your interests and choices while you are alive. If you do not have them in place, then make an appointment today to secure your future.