The Plan

To understand estate planning it is best to look at all the documents involved as they fall on a timeline. Our timeline begins now, runs through periods of incapacity and disability and continues on after death. Each document that is part of the plan falls somewhere on that timeline.

A Will, regardless of the type comes into play at the end of the timeline and is in effect only upon death. Until death the Will has absolutely no say in any legal matters. A Will therefore can be changed at almost any point in time up until the person's death.

The next document, a General Power of Attorney, can come in one of two forms - either a Durable Power of Attorney or a Springing Power of Attorney.

A Durable Power of Attorney is effective immediately and continues on during periods of incapacity or disability, and then terminates at death. The Springing Power of Attorney on the other hand, only becomes effective upon the occurrence of a certain event. Such an event, in most cases, is the disability or incapacity of the person who's granting the power. The Springing Power of Attorney, has a shortened time period of effectiveness, starting upon incapacity or disability and terminating upon death.

A Healthcare Proxy, serves to provide a person designated by you (your health care agent) with the ability to make health care decisions on your behalf during periods of your incapacity or disability. Your health care agent holds this authority only upon your incapacity or disability. A Health Care Memorandum or Living Will takes the Healthcare Proxy a step further by documenting your wishes and giving explicit direction to your health care agent. This document works hand in hand with the Healthcare Proxy, therefore it runs during the same time periods.

A Revocable Trust (commonly called a Living Trust) runs the entire gamut of the timeline, starting immediately, continuing on through periods of incapacity or disability and lasting beyond death. The power of a Revocable Trust is that the grantor holds control during their lifetime, through the period of incapacity or disability, and even beyond their death.