Who Should I Choose to Be My Power of Attorney?

power of attorney, Wheaton estate planning lawyerHave you ever thought about who should handle your affairs if you became physically or mentally capacitated? Sadly, unexpected accidents and illnesses can affect even individuals who are otherwise young and healthy. A power of attorney is a type of advance directive that allows a person to designate a representative or “agent” to speak on his or her behalf in the event of a catastrophic illness or injury. The term “power of attorney” is used to refer to the estate planning tool as well as the individual who is chosen to act as the agent. This is a heavy responsibility, so it is important to choose someone who is capable of handling the role.

Financial Power of Attorney and Power of Attorney for Healthcare

A power of attorney for healthcare, also called a medical power of attorney, allows you to choose a representative to make medical decisions on your behalf should you become unable to express your own medical wishes. For example, if complications arise during surgery and you are under anesthesia, your power of attorney for healthcare may need to make decisions on your behalf about how to proceed.

A financial power of attorney allows you to choose a representative to make financial decisions on your behalf if you become incapacitated. Your agent will be responsible for paying your bills and handling other monetary or real estate matters.  Some individuals choose to assign both medical and financial responsibilities to the same person, while others choose to assign these roles to two different people.

Considerations When Assigning Powers of Attorney

Choosing the person who will take on the huge responsibility of being your agent is often a difficult task. You may be conflicted about who you should assign as your financial or medical power or attorney. When choosing an agent, it is essential to choose someone who you can trust. You must also ask yourself whether or not this person can handle the duties for which he or she will be responsible.

For example, you may be extremely close with your adult son, but he might struggle to pay his bills or file his taxes on time. Although you may love him dearly, he may not be the best choice for managing your financial affairs. You should also consider how a potential agent would handle a decision that other family members or friends may disagree with. For example, perhaps you explain in advance to your medical power of attorney that you do not want to be kept alive via artificial ventilation if you are close to death. If you later become fatally sick or injured and the question of artificial ventilation arises, will he or she be strong enough to follow your wishes even if other loved ones disagree?

Contact a Wheaton, Illinois Estate Planning Lawyer

For estate planning guidance from a seasoned DuPage County estate planning attorney, contact Stock, Carlson & Duff LLC. Call our office today at 630-665-2500 and schedule a confidential consultation to discuss your needs.

Sources:

https://www.investopedia.com/articles/managing-wealth/042216/medical-vs-financial-power-attorney-reasons-separate-them.asp

https://www.verywellhealth.com/characteristics-for-choosing-power-of-attorney-4134991

Should My Will Have a No-Contest Provision?

no-contest, Wheaton estate planning lawyerAre you worried about what will happen to your surviving family members after your death? Maybe in the course of your conversations about your estate plan, you have seen warning signs that your children or other loved ones are not thrilled about your decisions. Or, perhaps you are concerned that one of your family members will be overcome by grief to the point where they cause problems without realizing what they are doing.

If you have such concerns, you may wish to consider adding a no-contest provision to your will. A no-contest provision can help reduce the possibility of your will being challenged after your death.

“In Terrorem” Clauses

A no-contest clause is sometimes known as an “in terrorem” clause. The Latin phrase “in terrorem” translates to “by way of threat.” Put simply, a no-contest provision threatens any heir who files a will contest in an effort to deter fighting between family members after the creator the will dies.

It is common for a no-contest clause to state that any heir who challenges the will forfeits the portion of the decedent’s estate that the heir was set to receive. In some cases, such a clause will drop the challenger’s inheritance down to a nominal amount like $1.

The idea is that if there is a possibility that the heir will get nothing, that heir is more apt to accept the provisions of the will, even he or she is not happy with the decedent’s choices. It is important to understand that a no-contest provision cannot legally prevent an heir from filing a will contest. The clause will only impact what happens afterward.

Important Considerations for No-Contest Clauses

If you are giving thought to a no-contest clause, you should talk to an estate planning lawyer before you make any decisions. For a no-contest provision to work as intended, the amount you intend to leave each of your heirs needs to be large enough to create an incentive. If, for example, you named 15 different beneficiaries, each of whom will inherit $20,000, one of them might be willing to risk $20,000 to try to get more through a will contest. If you only name three heirs, however, with each set to receive $100,000, a no-contest provision may carry much more weight.

Keep in mind that the courts have the authority to set aside an in-terrorem clause if a will contest is filed in good faith. For example, assume you are an heir in your father’s will which has a no-contest clause, but you believe that your father was forced to sign the will under duress or undue influence. You could file the will contest and request that court the invalidate the will. Assuming the court agrees, your father’s previous will would likely be reinstated. Even if that document also had a no-contest clause, the court might consider setting the in-terrorem clause aside because you were acting in the best interest of the estate, not just for yourself.

Call a DuPage County Wills and Trusts Attorney

If you would like to discuss your options regarding a no-contest provision in your will, contact a Wheaton estate planning lawyer. Call 630-665-2500 for a confidential consultation at Stock, Carlson & Duff LLC today.

Sources:

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2104&ChapterID=60

https://www.thebalance.com/tips-for-avoiding-a-will-contest-3505204

Single and Retired? Try These Strategies When Creating Your Illinois Will or Trust

DuPage County wills and trusts lawyerWhile those who are married or have kids typically have a built-in plan, should anything happen to them, singles rarely have this option. As such, they may find themselves incapacitated or ill with no one to protect their interests. Even worse, if they pass away, their entire life’s earnings could be lost. Thankfully, there are ways that single people can protect themselves from such a fate. Learn more, and discover how a seasoned will an trust lawyer can assist with the process. 

Examining the Role and Responsibilities of a Proxy or Trust

A trust or proxy is someone who makes medical, financial, or estate decisions for an incapacitated or deceased party. Used by single and married people alike, this person must be appointed by the individual in question ahead of time, and their roles and responsibilities must be clearly outlined. These may include:

  • Financial responsibilities – Making decisions on behalf of the individual and handling of their finances, should they become incapacitated; 
  • Healthcare responsibilities – Making medical decisions if the individual becomes incapacitated; and
  • Will or trust executor responsibilities – Handling of the estate and final expenses, should the individual pass away.

Ensuring Your Proxy is Prepared for Their Role

Your will or estate plan can be as simple or comprehensive as you like, but keep in mind that your proxy only knows what you tell them. For example, if you do not want to have excessive measures taken to keep you alive, you must outline this in your will or estate plan. Additionally, if you only want your proxy to handle certain aspects of your estate, you will want to ensure this is clearly stated and explained. Of course, it can be difficult to plan for all scenarios, especially on your own. As such, individuals are highly encouraged to seek legal counsel when drafting their will or estate plan. 

You will also want to ensure that your proxy has all the information they need to handle their responsibilities (i.e. passwords for online banking, credit cards, and online banking), and they will need a list of your debts and assets, along with a copy of your passport and information on any insurance policies you may have. This information can be placed in an envelope and given to your proxy. Just be sure to also supply your attorney with a copy, and update the information anytime something changes. 

Contact Our DuPage County Estate Planning Lawyers

With more than 40 years of experience, Stock, Carlson & Duff LLC has the knowledge and skills to help ensure your estate plan is created with your best interests in mind. Schedule your personalized consultation with our DuPage County estate planning lawyers to learn more. Call 630-665-2500 today. 

Source:

http://www.fox5atlanta.com/news/i-team/estate-emergency-planning-for-single-people