People generally believe they are best suited to determine who should inherit their possessions. A will allows you to determine who will receive your property upon your death. A will does not go into effect until after someone dies. Therefore, a will cannot help a person declare how their affairs should be managed should they become incapacitated by illness or injury.

Usually, the spouse inherits everything. In the absence of children or a spouse, the estate would be divided among your nearest living relatives and division can be lengthy and expensive when there is no will.

In addition to specifying the disposition of personal possessions, a will can also:

• Ensure your children’s security by naming the person you prefer as guardian
• Provide for the future care of pets
• Specify how final expenses should be handled

A will cannot prevent an estate from entering into the probate process, which can be a lengthy and costly process.

A power of attorney is a legal document that gives another individual the authority (powers) to act and make decisions on your behalf when you are unable to make those decisions for yourself. The type of actions and decisions permitted vary depending on the terms of the document. You should create a power of attorney if you would like to ensure you have someone who can make decisions about your affairs should you become incapacitated. Make sure to update your power of attorney frequently, since banks and other financial institutions may not honor documents that have not been updated for more than a year.

HEALTH CARE DIRECTIVES

Along with an advance health care directive, you will also want to complete an authorization for specific individuals to access your medical information. Without this document, your doctor may refuse to give the necessary information to your designated decision-maker.