1. Durable Power of Attorney for Financial Affairs. This is a legal document where you appoint another individual to handle your financial affairs should you become incapacitated. Without this document, your family is forced to obtain court authority.
2. Advanced Medical Directive. In Minnesota, this document is referred to as a Health Care Directive with two primary functions: first, to outline your medical preferences should you be unable to communicate; next, this document appoints the agent to make medical decisions on your behalf should you be unable to express your wishes.
3. Last Will and Testament. A will designates the administrator of your estate, outlines the distribution of your estate, and, if applicable, nominates a guardian for minor children. To be effective, a will must be filed in probate court after your death. Probate court is a judicial process where the court oversees the administration of your estate.
4. Revocable Living Trust. A living trust serves as an alternative to a traditional will and probate court administration. By transferring your property to your trust during your lifetime, the property passes free of probate court upon death. Avoiding probate court can provide a less costly and more efficient settlement of the estate – especially those owning property in several states.
David M. Ness heads the Trusts & Estates practice group at the Eden Prairie, Minnesota-based law firm Fafinski Mark & Johnson. He works with individuals and organizations in all aspects of estate planning.
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