Retirees should have six legal documents. Around half of all retirees surveyed have a last will and testament. Most are without crucial legal documents, according to a recent article from MSN, “6 Legal Documents That Most Retirees Need—but Don’t Have.” Here’s what you need to know about these critical documents.
Medical Power of Attorney or Healthcare Proxy. This document gives another person the authority to make medical decisions for you if you can’t make the decisions and communicate them yourself. People wrongly assume their spouse or adult children will automatically be permitted to talk with healthcare providers. This is not true, and you don’t want to find out about this in the middle of an emergency. If you are seriously injured and want your loved ones to be involved in your care, your estate planning attorney can create a medical power of attorney with your wishes clearly expressed. A downloaded form may not be valid in your state, since each state’s rules are different. You may also have wishes different than standardized forms, so you’ll want a personalized POA.
Advance Directive or Living Will. This legal document helps medical professionals and your loved ones. It needs to be very clearly prepared to reflect your wishes for end-of-life care if you can’t express yourself. The document is used when an accident, illness, or other condition prevents you from responding. Do you want to be placed on a ventilator, be attached to an artificial heart and lung machine, or receive nasal feeding? These are not easy to contemplate. However, consider what your family will go through if they have to guess what you would have wanted. An estate planning attorney should create this document to be sure it is valid when it’s needed.
Financial Power of Attorney. The financial POA allows a person of your choosing to make financial decisions for you. No one likes to give up control of their assets. However, if you aren’t able to manage and there is no POA, the family will need to go to court and petition the court to have a guardian appointed. This takes time and can be costly. Having your estate planning attorney create a financial POA while preparing the rest of your estate plan is better than going to court.
The POA documents can be as specific or as general as you wish. It can allow gifting is certain circumstances, such as long term care situation. Your estate planning attorney will have recommendations to best suit your situation.
HIPAA Waiver. Rules on sharing medical information are strict, and healthcare providers are trained to follow the rules, or their employer may face fines or lawsuits. A HIPAA Waiver or Release allows doctors and insurance companies to share information with the person you designate.
Funeral and burial arrangements. If you don’t outline your wishes, your family will do what they think is best, which may not be what you want. Some people don’t care. However, if you do, making these arrangements in advance will give you peace of mind and, in some cases, a sense of control over your final wishes.
Trusts. A trust is used to own assets designated for beneficiaries. It is used to move assets out of the probate estate, so they go through probate and can go directly to the named beneficiaries. Many people have trusts, so they have better control over their assets while living and after passing.
Like a last will, these documents must be reviewed and updated every three to five years. There are changes in our lives and tax laws. Make sure your wishes are reflected in your estate plan with regular reviews.
Reference: MSN (Feb. 24, 2025) “6 Legal Documents That Most Retirees Need—but Don’t Have”
