Planning for the Unexpected: Documents That Protect You and Your Loved Ones

No one wants to dwell on worst-case scenarios, but preparing for the unexpected can spare your loved ones from making difficult choices for you.

We spend hours planning for predictable milestones: earning an education, getting a first job, and saving for retirement. Yet, when it comes to the unpredictable moments that can reshape our lives in an instant, many of us can remain unprepared. A sudden illness, an unexpected accident, or a decline in cognitive ability doesn’t provide advance notice. These life-altering events require us to make decisions now, while we are capable.

Start with a Conversation

Discuss your expectations and wishes with the person who will make decisions on your behalf. This conversation can also include children, parents, or other loved ones who depend on you. Consult an attorney to discuss the pros and cons of any legal document, including the drafting and execution of that document.

If you have minor children, it’s necessary to have a conversation with the people who may care for them if you can’t.¹

If you have living parents, encourage them to create or revisit their own plans and share the information you’re incorporating into yours. Here are a few ideas to research, consider, and discuss as you formulate your plan.

Power of Attorney (POA)

A POA designates someone you trust to access your personal information and act on your behalf in specific situations. This is essential if you become unable to manage your own affairs. You can direct when you want your POA to end and may revoke your POA at any time, as long as you are competent.

A POA is only effective during your lifetime. The moment you pass away, it terminates, and your trust or will assumes control.

Revocable Living Trust

A revocable living trust is a legal arrangement that enables you to maintain control of your property, appoint a trustee to manage your affairs if you become incapacitated, and specify how your assets should be distributed upon your passing. Because the trust is revocable, you have the flexibility to modify or dissolve it if circumstances change.

Advance Directive and Living Will

An advance directive documents your healthcare preferences for future medical care and treatment when you are unable to communicate them yourself. A living will, typically part of this directive, addresses specific medical interventions that may be desired or declined. Many advance directives also designate a healthcare proxy, which is someone authorized to make medical decisions on your behalf.

These documents spare your family from making difficult decisions, such as whether to continue life support or pursue aggressive treatments. The choice is deeply personal, and your advance directive ensures that choice remains yours, even when you can no longer express it.

Health Insurance Portability and Accountability Act (HIPAA) Authorization

A HIPAA authorization grants a healthcare provider written consent to  release your protected health information for purposes not covered by the general HIPAA Privacy Rule. It is a way for you to control who sees your health information, for what reason, and for how long.

Create a comprehensive, organized list of all your important documents, accounts, and contacts. Here are some ideas to get started.

The list below is not exhaustive, and you may have additional accounts and benefits to include. We recommend reviewing these at least annually for accuracy.

These can be stored in a physical binder or folder, a safe deposit box, or a digitally encrypted file, depending on your needs and preferences.

• Power of Attorney (POA) documents
• Trust documents
• Will
• HIPAA authorization
• Bank accounts
• Investment accounts (including retirement)
• Insurance policies²
• Credit card accounts
• Loans
• Property titles and deeds

¹If your children are minors, be cautious when designating beneficiaries. If you die while they’re a minor, they cannot legally manage property or financial accounts. Instead, consider establishing a trust for your minor children with a designated trustee or naming an adult beneficiary who understands your wishes for your children.

²Long-term care insurance can also protect you if you experience an illness or disability. It covers the cost of assistance with daily activities like bathing, dressing, and eating.