Estate Planning: Understanding Advance Directives and Healthcare Proxies
Planning for the future is an essential part of personal finance. Estate planning is one aspect of this that can often be overlooked. This process involves preparing for what will happen to your assets and personal affairs after you pass away. While it may not be the most comfortable topic, it is essential to ensure that your loved ones are taken care of and your wishes are followed.
What are Advance Directives?
Advance directives are legal documents that outline your wishes for medical treatment in the event that you are unable to make those decisions for yourself. These documents typically include a living will and a durable power of attorney for health care. They can also include a do-not-resuscitate order (DNR), which instructs medical staff not to revive you if your heart stops or you stop breathing.
A living will is a document that outlines your preferences for end-of-life medical care. It can include instructions on whether or not to use life-sustaining treatments, such as a ventilator or feeding tube. It is essential to discuss your wishes with your loved ones and health care providers, so they understand what treatments you would like to receive in certain situations.
A durable power of attorney for health care is a document that gives someone you trust the ability to make medical decisions on your behalf. This person should be someone who knows your wishes and can follow through with them. It is crucial to choose someone who is willing and able to advocate for you and make decisions that align with your beliefs.
What is a Healthcare Proxy?
A healthcare proxy is a legal document that designates a person to make medical decisions on your behalf if you become unable to make those decisions for yourself. It is similar to a durable power of attorney for health care, but it is distinct in that the person you appoint is not limited to making decisions related to end-of-life care.
Having a healthcare proxy in place can alleviate stress and uncertainty for your loved ones in the event of an unexpected illness or accident. The person you designate as your healthcare proxy should be someone you trust and who understands your values and beliefs regarding medical treatment.
Why Do I Need Advance Directives and a Healthcare Proxy?
Without advance directives or a healthcare proxy in place, decisions about your medical care would fall on your family members or healthcare providers. This can create confusion and disagreements, especially if your loved ones are not sure what your wishes are.
It is crucial to have these documents in place so that your medical wishes are known and can be carried out. You can rest assured that your loved ones will not have to make difficult decisions about your care without guidance from you.
How Do I Create Advance Directives and a Healthcare Proxy?
Creating advance directives and a healthcare proxy is a straightforward process. You can work with an attorney, use online resources, or even create the documents yourself. However, it is important to ensure that the documents comply with your state's laws to ensure that they are legally binding.
It is also important to discuss your wishes with your loved ones so they understand your decisions and can serve as your advocate if needed. Keep a copy of the documents in a safe and accessible place, and provide a copy to your medical providers. Review and update the documents regularly to ensure they reflect your current wishes and any changes in your health status.
Conclusion
Estate planning is an essential part of personal finance that is often overlooked. Advance directives and a healthcare proxy are important documents that can ensure that your medical wishes are known and can be carried out in the event that you are unable to make those decisions for yourself. It is important to work with an attorney or use online resources to ensure that the documents comply with your state's laws and are legally binding. Review and update the documents regularly to ensure they reflect your current wishes and any changes in your health status.