By Leah Robinson, Head of Partnerships, Peacefully
Planning for the unexpected, whether it’s an accident or a tragedy, is crucial for people of all ages. While many associate end-of-life planning with older or middle-aged individuals, the truth is that everyone – young and old – should have essential legal documents in place. Having the right documents ensures that your members’ wishes are respected, no matter what happens.
Here are three key documents all adults should consider creating.
A financial power of attorney (POA) lets a person designate someone to manage their finances or make legal decisions on their behalf if they become unable to do so. This document ensures that somebody trustworthy will have the authority to act in their best interest. Whether specific instructions are provided for a chosen agent, or they are trusted to make decisions as needed, the POA guarantees that financial and legal affairs are handled according to established wishes.
This document is fairly simple: it requires relevant information, such as name, address, and the name of the person who is being assigned the power of attorney. It becomes official when signed by both parties in front of a notary.
If a person becomes unable to make decisions for themselves and a financial power of attorney is not in place, the family will have to start a court action to gain the authority to manage their finances. Since court proceedings are generally public, it’s best to keep these matters private and plan ahead.
A health care power of attorney (HCPOA) is a form that grants someone the power to make medical decisions for another person who has become incapacitated. This includes situations where one is in a coma, on life support, or otherwise unable to communicate their wishes. It often includes both a living will and durable medical power of attorney.
These types of advance directives provide peace of mind by ensuring that healthcare decisions are in the hands of a trusted party. These documents also allow the creator to specify what kind of medical treatments they do or do not want.
These documents are invaluable to people of any age. Without a will, state laws dictate how assets are distributed, which may not align with the individual’s wishes. A will clearly states how a person wants their possessions divided after they pass, which ensures that their loved ones or chosen charities benefit from their estate.
Trusts are more detailed than wills, offering additional protection and control over how assets are distributed. They can be more complex, but they offer advantages like avoiding probate and providing for minor children or loved ones with special needs.
Credit unions build strong, community-based relationships, often serving multiple generations within families. This trust makes credit unions well-suited to initiate sensitive conversations about estate planning, helping members feel supported and understood.
Additionally, financial literacy is central to the credit union ethos, and extending educational efforts to include estate planning aligns naturally with this mission of supporting members’ financial well-being.
To learn more about how to help your members prepare for the unexpected, connect with Peacefully.