Tips for Protecting Your Finances and Medical Decisions

Although a legally drawn up Will may help ensure that your belongings go to the people you chose after death, and an advanced health care directive may help ensure that the person of your choosing makes your medical decisions when you cannot, those two documents do not cover every scenario.

Here is a checklist of things you can do to prevent any confusion over your wishes. The material prepared for this checklist is intended as informational only and not as legal advice. It is best to talk with your physician, your lawyer, or certified financial planner.

• Arrange your finances now in the way you would like to see them handled in the future. In the event that you are unable to express your wishes, those managing your money are likely to assume that the way you structured your finances is the way you want them structured. If you want to share an asset with someone in the event you are incapacitated, for example, arrange common ownership now.



• There are mechanisms that will ensure that your assets pass to the person of your choosing, such as a Will or revocable living trust. A revocable living trust (where your assets are titled to the trust and your trustee distributes your assets per your wishes after your death) is sometimes considered more difficult to contest than a Will. An attorney can describe the benefits of each of these legal documents.



• A durable power of attorney for finances allows you to name someone you trust to handle your finances if you become unable to take care of yourself. If you become incapacitated without a durable power of attorney for finances, the person you want to take responsibility for your finances or family members will have to ask a court for authority over your financial affairs. You can make your financial power of attorney effective immediately if you would like assistance with your financial affairs currently, or you can specify that it should go into effect only if you become incapacitated.



• To ensure that the person you chose is able to make medical decisions for you when you are incapacitated, you should consider setting up an advance health-care directive, a Physician Orders for Life-Sustaining Treatment (POLST) form, and/or a durable power of attorney for health care. (In California, your durable power of attorney can be combined into your advance health care directive.) These documents appoint an agent to make medical decisions on your behalf should you become incapacitated, and sometimes spell out the kinds of care decisions that you wish to be made on your behalf. They should also allow visitation, which might otherwise be denied to persons who are not your spouse or other relative, and may allow health care professionals to discuss your medical condition with the person you want to act on your behalf. You might also give the person of your choosing Health Insurance Portability and Accountability Act authorization, a document that will authorize your insurer, physician and other health care providers to release medical information to a designated person. An advance health care directive may also be used by your agent to make life care decisions for you (such as living arrangements and providing for personal assistance) when you are unable to do so for yourself.



• Be sure to review your beneficiary designations on retirement accounts, stock options, life insurance and any other assets to ensure that these will go the person you intend.



• Some states (including California) allow you to register legally as domestic partners (in some states this is called registering a civil union). The benefits of registration can vary widely, but registering may give your partner the right to inherit without a Will, for example (although it is advisable to have a Will or revocable living trust, even if you have registered.) If you registered with a domestic partner who is no longer your domestic partner or who you do not wish to be the beneficiary of your assets, be sure to file a Notice of Termination of Domestic Partnership with the State Domestic Partner Registry.



• For assistance, or if you have any questions, you should discuss your preferences and decisions with an attorney.