Three Vital Documents
Michael Laurance   The Wealth Coach

Michael, you keep mentioning documents you cannot live without.  What are those three documents, who needs them, and what do they do?

     GREAT QUESTION! 

     There are three documents that no one should be without, no matter if you are young or old, married or single.  These documents will give you clarity and piece of mind knowing that your wishes are clearly documented.

First, you need a Will.  Even if you are not wealthy (YET!), you need to have a Will that outlines how you want your estate to be handled and by whom.  We all have special items that are dear to us, and a Will is the vehicle for making sure that your wishes are carried out.  Further, you should use your will to clarify how you want your remains to be handled.  (Sorry, I know that is delicate, but it is important to make those wishes known BEFOREHAND rather than leaving your loved ones guessing at a time of great stress.) 

You should also use your Will to outline more complex issues like who the guardian of your children or pets should be.  Wills are not expensive to complete, and can be done either with or without the help of an attorney.  As with all things, I always recommend getting the help of an expert!  In your Will you will appoint an Executor (Executrix if female.)  This person will have the legal responsibility to make sure that your Will is carried out to the letter.  It is best not to surprise someone with this responsibility; make sure the person you trust to be your Executor is willing to serve as such. 

Next, everyone should have an Advanced Directive.  This document sets expectations about medical decisions and treatment, if you are unable to do so.  How often are there Lifetime movies that portray someone being treated against their wishes?  There are plenty of real life cases, as well.  These often focus on end-of-life care, and allow folks to make their wishes known.  Again, I recommend having an attorney draft an Advanced Directive for you; oftentimes they will offer a package deal with the other two key documents.

Finally, every person needs to have a Health Care Proxy.  This document appoints someone to make health care decisions on your behalf if you are unable to do so.  It is vital that you appoint someone that you are comfortable with, who knows your wishes, and is willing to serve in this vital capacity.  Again, I recommend having YOUR  ATTORNEY (they are now YOUR ATTORNEY as they are working for YOU!  Isn’t it cool to say you have an attorney?!?!) draw up these important papers.

     Depending on the complexity of these documents I have seen them cost anywhere from a few hundred to a few thousand dollars.  In the end, you cannot put a price on piece of mind making sure that your wishes are known and followed.