Important Documents for Estate Planning in Florida
There are protective and prescriptive elements to estate planning in Florida. Some documents help ensure that the financial aspects of your life are protected, while others help fulfill your desires for what should happen in the event you become disabled, incapacitated, or pass away. You’ve worked hard to build the life you live, so it’s especially helpful to understand which documents are most important for your needs, as well as the differences between them. With these things in mind, you can continue to enjoy each day, stress-free from worry about what the future may hold due to an unexpected life change. What follows below are descriptions of important documents for estate planning in Florida and how they impact you.
What are the most important documents for estate planning in Florida?
There are several important legal documents that can be used to help protect your interests. Each has a specific function, addressing everything from what should happen if you can no longer make financial or medical decisions on your own, to who should receive your belongings when it is time to let them go.
Power of Attorney (POA)
The first legal document to draft should be your power of attorney, abbreviated as “POA.” Your POA allows you to name one person, or even multiple people, the power of agency, granting them the authority to act on your behalf. For instance, if you need outside help with closing bank accounts and selling titled assets like real estate, automobiles, or securities, only you or the person(s) named in your POA can do so. Otherwise, you must personally be present at the transaction. Having a POA is enormously helpful if you travel out of state for extended periods, for people with limited mobility or physical debilitation, and for anyone needing to perform frequent personal or business transactions requiring their signature.
Living Will
The second legal document is your living will, where you indicate under which circumstances you wish for your dying to not be artificially prolonged. For example, you may indicate whether you want assistance such as feeding tubes, a ventilator (a machine that provides breathing assistance), etc. should you have a terminal condition, end-stage condition, or be in a persistent vegetative state.
A living will is crucial in the unfortunate event you go into a coma, are under anesthesia, or can no longer communicate your wishes. Doctors and loved ones can use your living will to understand and respectfully fulfill those heath care preferences rather than needing to guess or assume what you might want in these situations.
A living will is often confused with a Do Not Resuscitate Order (“DNR”). A DNR is typically handled by hospitals or other medical offices. DNRs allow individuals who do not wish to be resuscitated in the event of respiratory or cardiac arrest the ability to make this desire known.
Designation of Healthcare Surrogate and HIPAA Authorization
A designation of healthcare surrogate allows you to indicate which person, or persons, you authorize to make medical decisions on your behalf if you are unable to do so. That medical decision maker is considered your “health care surrogate.” Some designations of healthcare surrogate also include provisions regarding the Health Insurance Portability and Accountability Act (“HIPAA”). These provisions, also sometimes seen in a standalone document, enable you to list people who are permitted to receive otherwise protected and sensitive healthcare information.
Revocable Living Trust
A revocable living trust is a legal entity that helps your estate avoid the cost and burden of state probate court. While you are still alive, you can legally transfer property that is not owned jointly with the right of survivorship into a trust, which effectively moves those assets from being in your name alone to the name of “the trust.” The individual you name as trustee will maintain the trust’s funding and disbursement, providing flexibility leading up to the end of your life. In some situations, a revocable living trust may also provide important tax benefits. As of 2022, Florida does not have an estate tax. However, there is currently an 18-40% federal estate tax that applies to assets over $12.06 million. The Florida Bar has published this useful pamphlet that helps further describe the benefits of a revocable living trust.
Last Will and Testament
Another vitally important legal document for estate planning in Florida is your Last Will and Testament. It is frequently referred to as a “will” and spells out what your intentions are for the distribution of property when you pass away. By expressing your wishes through a will, you identify:
- What should be done with your assets, and
- To whom they should go.
A well-written will goes a long way towards settling your affairs peacefully. After you pass away, your spouse may believe you want things done one way, while your children or grandchildren may see things from a different perspective. The will provides confidence to all your loved ones because everyone can plainly see exactly what you want. As a result, you greatly reduce the potential for family conflict born out of confusion or misunderstanding.
Declaration Naming Preneed Guardian
This is an often overlooked but an equally important legal document in Florida, especially if you have children. A Declaration Naming Preneed Guardian is used to name a guardian for yourself (or others for whom you are responsible, like your children) before you are incapacitated. Whether your children are minors or adults that are incapacitated, by naming their guardian you protect them from being assigned a guardian by the court. This can also help protect your elderly parents if you are their primary caregiver and suddenly pass away.
Next Steps
The decisions that these important documents for estate planning in Florida direct can provide much needed relief from stress during a time of transition in your life, and the lives of your loved ones. While you think through which documents are needed, begin by identifying your end goals, then work backwards from there. After you have a vision in mind for what you want, and notes about what is most important to you, consider working with a board-certified elder law attorney who is trained to draft and review your important documents before they are certified. Once that is done, be sure to make copies for anyone who should have them, then keep your own in a safe place. Contact us if you have any questions at (904) 257-8543, and we will arrange to meet with you as soon as possible to discuss your needs.
