2. The Essential Estate Planning Documents Flashcards
The best practices involved in gathering client information
Use a comprehensive, clearly-defined fact finder or estate planning workbook
The best practices involved in professional engagement and payment of fees
Have a signed engagement letter or retainer agreement with established parameters and clear disclosure of fees
The Pour-Over Will
Following death, the Pour-Over Will directs assets outside of the RLT into the trust. (Generally, as long as under the small probate limit.)
Can also be used to name guardians, disinherit a child, or name an executor.
The Personal Property Memorandum
A written document wherein a client directs who is to get specific items of personal property so they don’t “grow legs and disappear.”
Attached to a Will or RLT.
The Living Will
A directive to the medical community and the client’s family as to what the client wants done in the event their condition becomes terminal (as documented by two doctors).
If one does not wish to be sustained by artificial means, “die with dignity.”
The Durable Healthcare Power of Attorney
The principal executes a POA which will become or remain effective even if the principal should later become disabled, incapacitated, or incompetent. Grants the authority to attorney in fact to make certain healthcare decisions for the principal.
NOTE: Always use state recommended forms!
The Do Not Resuscitate Order
Given upon client being admitted to a hospital in a terminal or critical condition and asked to consider signing. A “right to die” document.
The Anatomical Gift Election
Done by checking a box when applying for a driver’s license. Generally works if the client is driving a car and carrying their license at or near death.
If not driving a car, there is a form, but a copy must be available around the time of death.
Precatory Instructions
An expression of author’s requests, addressed to an executor, attorney in fact, healthcare proxy, etc.
Ineffective to require a person to act, but effective to communicate wishes.
ex: The Five Wishes Directive
The POLST
Physicians Order for Life Sustaining Treatment
New advance medical directive alternative. A form, completed and signed by a doctor, that converts the client’s wishes on to their medical charts as a doctor’s order.
The Wallet Card
All should carry a wallet card clearly stating that they have a DHCPOA, a Living Will, and (if appropriate) a DNR order or anatomical gift election.
The Durable General Power of Attorney
Gives attorney in fact the authority to perform certain specified acts concerning the principal’s business and personal affairs.
Can be immediate or springing at disability.
The Nomination of Conservator/Guardian and the role of each
“Living Probate” gives the court the power to appoint a guardian or conservator if it becomes necessary. Someone petitions the court for the appointment and not even the spouse can challenge it.
Guardian is formally named to take care of physical welfare when the client cannot care for himself.
Conservator is for property and business affairs.
The better route is for the client to name an attorney in fact in his DHCPOA and DGPOA, a health care proxy in his Living Will, and a successor trustee in his RLT.
The preparation and handling of healthcare-related ancillary documents
Ideally, these documents are prepared with an estate planning attorney, though some templates are available online, at some major hospitals and senior centers, and bookstores/office supply stores.
Share copies with:
-person named in the living will as healthcare proxy
-attorney in fact named in DHCPOA
-physician
-office of the hospital/care facility likely to receive treatment
-close relatives
Also perhaps in glove compartment or kitchen cabinet. The client should keep a list of people and places that have copies should they need to be updated/replaced.
The use of a bank lockbox
The client must provide clear written instructions to the bank as to who will have access to his lockbox upon death or incapacity. Ideally, executor, attorney in fact named in DGPOA, and/or successor trustee.
Other option, binder at home for estate doc originals.
