Welcome back to the second installment discussing key decision makers. Part 1 introduced the concept of decision makers and we named some active roles. This week, we are finishing up this topic by naming a few more roles that are pertinent parts of running a successful estate! Enjoy!
Agent (Durable Power of Attorney for Healthcare Decisions)
This type of Agent deals solely with healthcare decisions. In the event that you become incapacitated, this individual or entity would make any decisions relating to your health as you would want. This responsibility may include decisions dealing with admittance or discharge from the hospital or health care facility, treatments, medical record disclosure, etc.
HIPAA Agent(s)
The Healthcare Insurance Portability and Accountability Act of 1996, otherwise known as HIPAA, protects an individual’s protected health information. Healthcare professionals can be fined quite severely if HIPAA protocol is not followed and therefore, it is imperative that a HIPAA Agent is appointed in order to protect and invoke your rights in the event that you are incapacitated. This person would step into your shoes, so to speak, when it comes to your protected health information. Therefore, that specific individual would be able to obtain medical records regarding past, present, or future medical information, including mental health conditions. Without an appointed agent, obtaining medical records that may be relevant to you and your family would be extremely difficult.
Custodial Guardian
If you have minor children, you can name an individual as a Custodial Guardian to care for your children until age of majority in the event that you pass unexpectedly. A Custodial Guardian is an individual that is appointed either by a family court, volunteers or nominated through a Will to raise an individual’s children in the even that they die before their children are adults. Although this is a difficult thought, it is wise to consider incorporating into your estate plan to avoid the court process and the possibility of children being placed with a family member who you wouldn’t have picked for this. Someone who your child/ren are familiar with and feel comfortable around and also someone who would raise your child/ren as you would want is preferable. More on Guardianship law here.
Conservator of Minor Child’s Estate
When a minor child inherits money or property, it may go into a separate Trust for the child until the child is legally old enough to own property. Therefore, an individual or entity is needed to manage the Trust and make distributions for the child; a Conservator oversees the costs associated with raising the child and will adhere to the directives that are binding from the inheritance and statutorily. Typically, in a Trust-based plan, the successor trustee is the conservator.
Generally speaking, a trusted, financially savvy family member would be an ideal decision maker. Conventionally, a family member would have your best interests in mind and would be emotionally vested in those interests. Be sure to keep in mind, that appointing someone who is going to live longer than you are is essential and someone who may be a “leader” or someone who the family respects. Additionally, letting the other family members know who you picked will alleviate any issues that may arise after your passing, and will enable those who have interests in the estate to have a contact person.
Close friends are also good options if