Now’s the time to get your affairs in order

So often I am asked, why do I need to have a will? Everything passes to my spouse or children anyway, right? And if so, why do we need do life and estate planning anyway? These are great questions.

The reason we plan is so that we will have in place the legal documents that will work the way they are supposed to when we need them to - When you or a loved one find yourself in a pickle. Such as when a spouse has a stroke and you need to access funds that are just in your spouse’s name or when you need to speak with mom’s pharmacist but the pharmacist refuses unless you can show you have the authority or right to do so.

There are five basic documents we all need regardless of wealth. They are a last will and testament, a durable general power of attorney for financial matters, health care power of attorney with HIPPA form, health care directive (or a living will) and if married, a community property agreement. Words matter a lot in these. Work with someone who knows what they are doing when preparing these. After all, the purpose is to have documents that will work.

Which of these documents are the most important when we are alive? Without hesitation the durable general power of attorney and health care power of attorney. These documents empower someone to act for you legally as if they were you. We all need someone so empowered because we most likely at some point will find ourselves unable to speak or act for ourselves. Power of attorney fixes this problem. If what you are trying to do for someone through that person’s power of attorney is not clearly spelled out in the document, you do not have the power to act.

What about a last will and testament? An important document to have when we die. This document will name who will administer your estate. Your will provides who gets what (or who does not get anything). Your will should identify whether you wish to be buried/cremated and donate organs. Without a will, you leave a mess that may have to be cleaned up through the courts. Leave a plan, not a mess. Remember a will does not transfer anything - rather a will is your set of instructions as to what happens when you pass.

Why have community property agreement if you are married? The simple answer is that property of a marriage does not automatically transfer to the surviving spouse upon the first spouse’s death. Even though Washington is one of eight community property states, it is still possible for a person in Washington to have separate property. So to eliminate a legal process known as “probate” on the first spouse to die, get a community property agreement which will, by law, vest all property in the surviving spouse without Court intervention.

Finally, a living will or health care directive. Hospitals/doctors want to know your wishes should you become permanently unconscious or in a persistent vegetative state. This is an end of life document that applies to specific circumstance while being cared for. Additional end of life planning with do not resuscitate orders should be undertaken.

I hope the above overview has helped shed light on the importance of having our affairs in order. Life has this way of throwing curveballs at us when we least expect such. Stay tuned for further articles discussing how best to plan for both life and long term care needs.

Robert Michaels is an attorney with Smith Alling, P.S. in Tacoma.