5. Do not overlook the need for a power of attorney for property.

Just like you need a health care power of attorney, you also need a property power of attorney to communicate your wishes regarding who will make financial decisions in the event that you become incapable of doing so. There are a number of situations in which you could be alive, but incapable of managing your financial affairs due to a deteriorating mental or physical condition. Without a property power of attorney, any assets that are not held in a trust or through joint tenancy will need to be managed by a third-party in the event that you become incapacitated. For instance, tax refunds, retirement benefits, and inheritance proceeds all need to be managed and, without a designated executor, those assets may not be managed with your best interests in mind.

If you would like additional information or assistance with your estate plan preparation, please contact Marc Blumenthal at (847) 808-7092.