The three basic documents in estate planning are the Will, Financial Power of Attorney and Medical Power of Attorney. For families with disabled individuals a Special Needs Trust may be appropriate to protect assets. Each document appoints a fiduciary to carry out your wishes as outlined in each document. Often, the person(s) named for each role in each document is the same but sometimes you may feel that one person is more suited for medical decision making and another for financial affairs.
In the Will you set out your wishes for the disposition of your estate after your death and you nominate a Personal Representative (formerly known as an “Executor”) who carries out those wishes upon being appointed by a Probate Court
In the Financial Power of Attorney you (the “Principal”) name an “Agent,” who has authority during your lifetime to handle your financial affairs.
The Medical Power of Attorney names an agent to make medical decisions if you can’t make or express your own wishes. We often include a Living Will, if you would not want extraordinary measures when diagnosed with a terminal condition or persistent vegetative state, and a HIPPA Release so that your agents have access to your medical information.
In a Special Needs Trust, you (the “Settlor”) appoint a Trustee to protect and manage the assets of a disabled person. By placing assets in such a trust you can protect the disabled individual’s eligibility for public benefits while affording them access, through the trustee, to funds to provide for “special” needs such as transportation, education, personal care, etc.