One way we can show our loved ones how much we care about them is by making our wishes known for when we’re no longer there to tell them. Estate planning is one of the best ways to do that, especially concerning what’s to be done with our physical body after death. One of the six main documents that are part of any estate plan is called the “disposition of final remains.” In this document, you can detail how you want your body to be treated after you pass away, along with any ceremonial requests. You may be as general or specific as you wish.
Let’s now turn to the Disposition of Final Remains.
If you’ve ever had someone close to you die, and been tasked with making arrangements for the wake, funeral, and burial or cremation, you know it can be difficult. Not only are you dealing with the heartache and grief of losing a loved one, but now you’re also tasked with the organizational aspects of death.
If you die without an estate plan, and without clear instructions in a disposition of final remains document, you’ll be leaving your loved ones with a huge headache on top of the inevitable heartache. Perhaps even worse, ambiguity surrounding disposition of final remains can lead to tension between family members if they disagree over what would be best. Therefore, taking the time to think through your final services is a wonderful gift, and a great way to show your loved ones how much you care.
Let’s go through some of the basics related to this important, valuable document.
WHAT DOES “FINAL DISPOSITION” MEAN ANYWAY?
Final disposition sounds, well, final. Indeed, this is about what you ultimately want to be done with your physical body following death. This may include burial (sometimes referred to interment), cremation, removal from the state (if you want to be buried in a different state), and other types of disposition. If you wish, you may also detail preference that a funeral or other type of ceremony (maybe even a party) to be held. If you’ve purchased a burial plot or want to be laid to rest in the family mausoleum, you would include those details here.
Again, your instructions in the Final Disposition of Remains may be as general or specific as you wish. Some of my clients have insisted that there be only the shortest and simplest of memorial services. Others have wanted a marching band and fireworks shooting their ashes into the sky. (Yes, that is a thing). It’s completely up to you.
CHOOSE A DESIGNEE
In the disposition of final remains document, you can designate one or multiple adults to assume responsibility for carrying out your wishes, similar to how you designate an executor to carry out the wishes as written in your will. Your designee or designees (sometimes also referred to as “representatives”) can be whomever you choose, just be sure to speak with them to make certain they are comfortable and accepting of the role.
Of course, the designee must be a competent adult. The document also allows for alternate designees to be named in the event the primary designee is unable to act.
CAN I CHANGE MY MIND?
Your wishes may change over time and that’s OK! The disposition of final remains is revocable, meaning you can change the document at any time. For example, you can name a new and different your designee if s/he becomes unable or unwilling. Regardless of whether or not you want to amend your disposition of final remains document, you should review your estate plan annually to see if any major life events require updates.
HOW DO I START?
It’s always a good time to make a plan that saves your loved one’s headaches and heartache after your death. The disposition of final remains document is a key part of your estate plan, so a great place to get started is my free Estate Plan Questionnaire.
Questions or want to discuss your personal situation? Contact me at any time via email or phone (515-371-6077).
*OK, not everything. But many things, let’s say, an excellent start.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2021/06/Everything-You-Need-to-Know-About-Estate-Planning-Day-5.jpg6831024Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2021-06-05 09:00:142022-01-10 14:35:49Disposition of Final Remains: Save Your Loved Ones Headaches & Heartache (Everything* You Need to Know About Estate Planning: Day 5)
You’ve probably heard you need to have a financial power of attorney in place, but the whole thing seems a little ambiguous . . . what does this important legal document (which is a necessary part of a complete estate plan) actually mean? Let’s cover the basics.
Let’s move on, now, to the financial power of attorney.
WHAT IS A FINANCIAL POWER OF ATTORNEY?
A financial power of attorney (“POA”) is a legal document that designates someone (an “agent,” sometimes also called an “attorney-in-fact”) to handle your financial decisions on your behalf, if you are unable to do so while living, due to illness, injury, and/or lack of mental capacity.
IMMEDIATE VERSUS SPRINGING
There are two main types of financial power of attorney I offer my clients.
Immediate power—effective from the moment you sign it, without any medical certification; while immediate, you do not lose control of your affairs. (This is typically what I recommend.)
Springing power—becomes effective only upon medical certification that you are unable to carry on your legal and financial affairs.
WHAT HAPPENS IF I DON’T HAVE A FINANCIAL POA?
If you don’t have a financial POA, and you were to become incapacitated, any financial decisions would need to be made by a court-appointed conservator. Under a court’s direction, the conservator would handle your financial matters. To have a conservator appointed by a court is a quite expensive and time-consuming process, especially compared with the relative simplicity of executing a financial POA. Also, court proceedings generally being public, having a court consider whether or not you are “competent” to handle your own financial matters, is potentially embarrassing. Futher, you’d much rather leave your important financial decisions to a person you love and trust, over someone a court appoints (a court may not pick who you’d want).
AFTER I DIE, CAN MY AGENT CONTINUE TO OPERATE UNDER MY FINANCIAL POA?
A common misperception is that your agent will be able to use this power after your death. Not true! Upon death, your financial POA terminates and your will and/or trust kick in to guide decision making in your absence.
Put another way, at your death, your agent’s powers are automatically revoked. The representative appointed through the probate process will carry out your estate plan.
WHO SHOULD I CHOOSE TO SERVE AS AN AGENT UNDER MY FINANCIAL POA?
The agent you name will be managing your finances, so it is critically important to choose someone trustworthy; someone who will not abuse or exploit this power; someone who will listen to your wishes, goals, and objectives, as included in the document or otherwise communicated; and someone who will always look out for your best interests.
If there’s no person in your life you believe trustworthy or capable enough to be your executor, or you don’t want to burden with the role, you have another option: appointing a corporate executor or trustee. You can find corporate executors and trustees at banks and private investment firms. They usually charge a fee based on the size of the estate, but corporate executors and trustees have the advantages of experience, a dedicated staff, and impartiality. The latter quality is particularly important if there are complicated family dynamics, such as blended families or bad blood.
You also have the option of designating a successor agent who can take over if the original agent is unable or unwilling to serve. This is highly recommended.
WHO SHOULD RECEIVE A COPY OF MY FINANCIAL POA?
I recommend that the person named as agent and any person named as a successor agent should receive a copy of your financial POA. You may also wish to share a copy with your financial institution(s), such as your bank/credit union, as well as with your financial advisor and/or accountant.
CAN I REVOKE MY FINANCIAL POA?
Yes, you may revoke the financial POA at any time. You can also amend the financial POA (change it, revise it, etc.) at any time.
ARE THERE OTHER ESTATE PLANNING DOCUMENTS I NEED?
Yes, definitely! There are six “must have” estate planning documents. The financial power of attorney is one of these documents that create a basic, overall estate plan.
WHO NEEDS A FINANCIAL POA?
I’m a staunch believer that every adult Iowan needs an estate plan—including young professionals, newlyweds, the non-wealthy, and especially people with minor children—and, therefore a financial POA. A financial POA can even be incredibly important (but often overlooked) for college students.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2021/06/Everything-You-Need-to-Know-About-Estate-Planning-Day-4.jpg480640Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2021-06-04 09:00:452022-01-10 14:35:49Why Every Iowan Should Have Financial Power of Attorney (Everything* You Need to Know About Estate Planning: Day 4)
A health care power of attorney (“POA”) is a legal instrument that allows you to select the person (called an “agent”) that you want to make health care decisions for you, if and when you become unable to make such decisions for yourself.
WHAT TYPES OF DECISIONS CAN BE MADE BY A HEALTH CARE POA?
A health care POA can govern any decision related to your health that you want to address. A health care POA may include decisions related to organ donation, hospitalization, treatment in a nursing home, home health care, psychiatric treatment, end-of-life (i.e., the use of life support), and more.
WHEN WOULD I USE A HEALTH CARE POA?
A health care POA is used when you become unable to make health care decisions for yourself. Your agent will be able to make decisions for you based on the information you provided in your health care POA. Equally important, your agent will be able to access your medical records, communicate with your health care providers, and so on.
WHAT HAPPENS IF I DON’T HAVE A HEALTH CARE POA?
If you don’t have a health care POA, and you should become disabled to the point where you are unable to make health care decisions for yourself, your health care provider (say, a hospital) will do everything possible to save your life.
Your family, without guidance from you, will be faced with agonizing decisions. Your family members may not be able to agree on how to handle your medical care, or you might disagree with the decision your family ultimately makes.
If your family can’t agree on a course of action, they would have to go to an Iowa Court and have a conservator/guardian appointed for you. It may, or may not, be someone you would have chosen. Further, the conservator/guardian may make decisions you wouldn’t have made.
This is all very complicated, time consuming, and expensive. A health care POA simplifies this process by giving you control over how decisions are made for you and allowing you to choose who will carry out your wishes. Best of all, it leaves your family with peace of mind.
IS THERE A “ONE-SIZE-FITS-ALL” POA FOR HEALTH CARE?
No! All Iowans are special and unique, and so are each individual’s issues and concerns. Consequently, this article is presented for informational purposes only, not as legal advice. Please consult your lawyer for personal advice.
DO I NEED OTHER ESTATE PLANNING DOCUMENTS IN ADDITION TO A HEALTH CARE POA?
Do you have a health care POA currently? And do you have a complete estate plan? Why or why not? I’d be most interested in any thoughts or comments. Email me anytime at gordon@gordonfischerlawfirm.com or call 515-371-6077.
*OK, not everything. But many things, let’s say, an excellent start.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2021/06/Everything-You-Need-to-Know-About-Estate-Planning-Day-3-scaled.jpg17072560Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2021-06-03 09:00:232022-01-10 14:35:49What Every Iowan Should Know About Health Care Power of Attorney (Everything* You Need to Know About Estate Planning: Day 3)
Disposition of Final Remains: Save Your Loved Ones Headaches & Heartache (Everything* You Need to Know About Estate Planning: Day 5)
Estates & Estate Planning, Powers of Attorney, Wills, Wills, Trusts & EstatesOne way we can show our loved ones how much we care about them is by making our wishes known for when we’re no longer there to tell them. Estate planning is one of the best ways to do that, especially concerning what’s to be done with our physical body after death. One of the six main documents that are part of any estate plan is called the “disposition of final remains.” In this document, you can detail how you want your body to be treated after you pass away, along with any ceremonial requests. You may be as general or specific as you wish.
SIX “MUST HAVE” DOCUMENTS OF YOUR ESTATE PLAN
As discussed in 12 Things Every Iowan Should Know About Estate Planning, there are six documents that should be part of most everyone’s estate plan:
At the outset of this seven-part series of blog posts about estate planning, I explained the basics of a will . Then, I covered health care power of attorney, and also financial power of attorney.
Let’s now turn to the Disposition of Final Remains.
If you’ve ever had someone close to you die, and been tasked with making arrangements for the wake, funeral, and burial or cremation, you know it can be difficult. Not only are you dealing with the heartache and grief of losing a loved one, but now you’re also tasked with the organizational aspects of death.
If you die without an estate plan, and without clear instructions in a disposition of final remains document, you’ll be leaving your loved ones with a huge headache on top of the inevitable heartache. Perhaps even worse, ambiguity surrounding disposition of final remains can lead to tension between family members if they disagree over what would be best. Therefore, taking the time to think through your final services is a wonderful gift, and a great way to show your loved ones how much you care.
Let’s go through some of the basics related to this important, valuable document.
WHAT DOES “FINAL DISPOSITION” MEAN ANYWAY?
Final disposition sounds, well, final. Indeed, this is about what you ultimately want to be done with your physical body following death. This may include burial (sometimes referred to interment), cremation, removal from the state (if you want to be buried in a different state), and other types of disposition. If you wish, you may also detail preference that a funeral or other type of ceremony (maybe even a party) to be held. If you’ve purchased a burial plot or want to be laid to rest in the family mausoleum, you would include those details here.
Again, your instructions in the Final Disposition of Remains may be as general or specific as you wish. Some of my clients have insisted that there be only the shortest and simplest of memorial services. Others have wanted a marching band and fireworks shooting their ashes into the sky. (Yes, that is a thing). It’s completely up to you.
CHOOSE A DESIGNEE
In the disposition of final remains document, you can designate one or multiple adults to assume responsibility for carrying out your wishes, similar to how you designate an executor to carry out the wishes as written in your will. Your designee or designees (sometimes also referred to as “representatives”) can be whomever you choose, just be sure to speak with them to make certain they are comfortable and accepting of the role.
Of course, the designee must be a competent adult. The document also allows for alternate designees to be named in the event the primary designee is unable to act.
CAN I CHANGE MY MIND?
Your wishes may change over time and that’s OK! The disposition of final remains is revocable, meaning you can change the document at any time. For example, you can name a new and different your designee if s/he becomes unable or unwilling. Regardless of whether or not you want to amend your disposition of final remains document, you should review your estate plan annually to see if any major life events require updates.
HOW DO I START?
It’s always a good time to make a plan that saves your loved one’s headaches and heartache after your death. The disposition of final remains document is a key part of your estate plan, so a great place to get started is my free Estate Plan Questionnaire.
Questions or want to discuss your personal situation? Contact me at any time via email or phone (515-371-6077).
*OK, not everything. But many things, let’s say, an excellent start.
Why Every Iowan Should Have Financial Power of Attorney (Everything* You Need to Know About Estate Planning: Day 4)
Estates & Estate Planning, Powers of Attorney, Wills, Wills, Trusts & EstatesWhat IS a Financial power of attorney, anyway?
You’ve probably heard you need to have a financial power of attorney in place, but the whole thing seems a little ambiguous . . . what does this important legal document (which is a necessary part of a complete estate plan) actually mean? Let’s cover the basics.
SIX “MUST HAVE” DOCUMENTS OF YOUR ESTATE PLAN
As discussed in this previous blog post overview , there are six documents that should be part of most everyone’s estate plan:
In a follow-up blog post, we considered the basics of a will.
And, in my latest blog post, we discussed the power of attorney for health care.
Let’s move on, now, to the financial power of attorney.
WHAT IS A FINANCIAL POWER OF ATTORNEY?
A financial power of attorney (“POA”) is a legal document that designates someone (an “agent,” sometimes also called an “attorney-in-fact”) to handle your financial decisions on your behalf, if you are unable to do so while living, due to illness, injury, and/or lack of mental capacity.
IMMEDIATE VERSUS SPRINGING
There are two main types of financial power of attorney I offer my clients.
WHAT HAPPENS IF I DON’T HAVE A FINANCIAL POA?
If you don’t have a financial POA, and you were to become incapacitated, any financial decisions would need to be made by a court-appointed conservator. Under a court’s direction, the conservator would handle your financial matters. To have a conservator appointed by a court is a quite expensive and time-consuming process, especially compared with the relative simplicity of executing a financial POA. Also, court proceedings generally being public, having a court consider whether or not you are “competent” to handle your own financial matters, is potentially embarrassing. Futher, you’d much rather leave your important financial decisions to a person you love and trust, over someone a court appoints (a court may not pick who you’d want).
AFTER I DIE, CAN MY AGENT CONTINUE TO OPERATE UNDER MY FINANCIAL POA?
A common misperception is that your agent will be able to use this power after your death. Not true! Upon death, your financial POA terminates and your will and/or trust kick in to guide decision making in your absence.
Put another way, at your death, your agent’s powers are automatically revoked. The representative appointed through the probate process will carry out your estate plan.
WHO SHOULD I CHOOSE TO SERVE AS AN AGENT UNDER MY FINANCIAL POA?
The agent you name will be managing your finances, so it is critically important to choose someone trustworthy; someone who will not abuse or exploit this power; someone who will listen to your wishes, goals, and objectives, as included in the document or otherwise communicated; and someone who will always look out for your best interests.
If there’s no person in your life you believe trustworthy or capable enough to be your executor, or you don’t want to burden with the role, you have another option: appointing a corporate executor or trustee. You can find corporate executors and trustees at banks and private investment firms. They usually charge a fee based on the size of the estate, but corporate executors and trustees have the advantages of experience, a dedicated staff, and impartiality. The latter quality is particularly important if there are complicated family dynamics, such as blended families or bad blood.
You also have the option of designating a successor agent who can take over if the original agent is unable or unwilling to serve. This is highly recommended.
WHO SHOULD RECEIVE A COPY OF MY FINANCIAL POA?
I recommend that the person named as agent and any person named as a successor agent should receive a copy of your financial POA. You may also wish to share a copy with your financial institution(s), such as your bank/credit union, as well as with your financial advisor and/or accountant.
CAN I REVOKE MY FINANCIAL POA?
Yes, you may revoke the financial POA at any time. You can also amend the financial POA (change it, revise it, etc.) at any time.
ARE THERE OTHER ESTATE PLANNING DOCUMENTS I NEED?
Yes, definitely! There are six “must have” estate planning documents. The financial power of attorney is one of these documents that create a basic, overall estate plan.
WHO NEEDS A FINANCIAL POA?
I’m a staunch believer that every adult Iowan needs an estate plan—including young professionals, newlyweds, the non-wealthy, and especially people with minor children—and, therefore a financial POA. A financial POA can even be incredibly important (but often overlooked) for college students.
Do you have a financial POA? How about a full estate plan in place? Why or why not? I’d love to hear from you. Email me at gordon@gordonfischerlawfirm.com or call (515-371-6077).
*OK, not everything. But many things, let’s say, an excellent start.
What Every Iowan Should Know About Health Care Power of Attorney (Everything* You Need to Know About Estate Planning: Day 3)
Estates & Estate Planning, Powers of Attorney, Wills, Wills, Trusts & EstatesSIX “MUST HAVE” DOCUMENTS OF YOUR ESTATE PLAN
As discussed in this previous blog post overview, there are six documents that should be part of most everyone’s estate plan:
Last blog post, I explained the basics of a will.
In this post, let’s discuss the benefits and important aspects of a health care power of attorney.
WHAT IS A HEALTH CARE POWER OF ATTORNEY?
A health care power of attorney (“POA”) is a legal instrument that allows you to select the person (called an “agent”) that you want to make health care decisions for you, if and when you become unable to make such decisions for yourself.
WHAT TYPES OF DECISIONS CAN BE MADE BY A HEALTH CARE POA?
A health care POA can govern any decision related to your health that you want to address. A health care POA may include decisions related to organ donation, hospitalization, treatment in a nursing home, home health care, psychiatric treatment, end-of-life (i.e., the use of life support), and more.
WHEN WOULD I USE A HEALTH CARE POA?
A health care POA is used when you become unable to make health care decisions for yourself. Your agent will be able to make decisions for you based on the information you provided in your health care POA. Equally important, your agent will be able to access your medical records, communicate with your health care providers, and so on.
WHAT HAPPENS IF I DON’T HAVE A HEALTH CARE POA?
If you don’t have a health care POA, and you should become disabled to the point where you are unable to make health care decisions for yourself, your health care provider (say, a hospital) will do everything possible to save your life.
Your family, without guidance from you, will be faced with agonizing decisions. Your family members may not be able to agree on how to handle your medical care, or you might disagree with the decision your family ultimately makes.
If your family can’t agree on a course of action, they would have to go to an Iowa Court and have a conservator/guardian appointed for you. It may, or may not, be someone you would have chosen. Further, the conservator/guardian may make decisions you wouldn’t have made.
This is all very complicated, time consuming, and expensive. A health care POA simplifies this process by giving you control over how decisions are made for you and allowing you to choose who will carry out your wishes. Best of all, it leaves your family with peace of mind.
IS THERE A “ONE-SIZE-FITS-ALL” POA FOR HEALTH CARE?
No! All Iowans are special and unique, and so are each individual’s issues and concerns. Consequently, this article is presented for informational purposes only, not as legal advice. Please consult your lawyer for personal advice.
DO I NEED OTHER ESTATE PLANNING DOCUMENTS IN ADDITION TO A HEALTH CARE POA?
Yes, definitely! (It’s even essential for college students.) There are six “must-have” estate planning documents that make up a complete, comprehensive estate plan. (Some people may also need to consider a trust.)
Do you have a health care POA currently? And do you have a complete estate plan? Why or why not? I’d be most interested in any thoughts or comments. Email me anytime at gordon@gordonfischerlawfirm.com or call 515-371-6077.
*OK, not everything. But many things, let’s say, an excellent start.