When people think about estate planning, many imagine families of tremendous wealth creating fancy trusts to pass down from generation to generation. However, estate planning is important no matter what your financial situation is. A recent article discusses several estate planning tips for everyday Americans.
First, everyone should have an advance health care directive. This directive has two parts. It first allows you to document your wishes should you become incapacitated and not able to make medical decisions for yourself. The second allows you to direct what type of treatment you would like to receive in those situations.
Along with an advance health care directive, it is also important that everyone complete a HIPAA release. A HIPAA release allows a person to specify the person or persons that he or she would like to be permitted to access medical information on his or her behalf. This is vital for unexpected medical care as, without a HIPAA release, your family member may not even be able to determine what hospital you are receiving treatment at.
Finally, it is important for everyone to complete a durable power of attorney. This is important because, through a durable power of attorney, a person can select the person who will take over his or her financial life, should he or she become incapacitated. These are particularly beneficial when a person experiences an unexpected hospitalization and therefore cannot take care of his or her bills and other obligations for an extended period of time.
