August 2020
Financial Planning

The pandemic reminds us all just how important our health is—and making sure we have the right plans in place for ourselves and our loved ones should we fall ill. Generally, when it comes to making important health care and "life or death" decisions, the following 3 key legal documents should be available to the family to ensure that your loved one's wishes are carried out. 

1. Living will 

2. Health care proxy 

3. HIPAA authorization 

What is a living will? A living will allows someone to state their wishes regarding certain kinds of medical treatments, as well as life-prolonging and end-of-life procedures. This document typically takes effect if someone cannot communicate their own health care decisions. 

What is a health care proxy? A health care proxy grants authority to another person to make medical decisions on a person's behalf when that person is not able to communicate decisions on their own. The health care proxy ends when the person granting authority revokes it, or dies. 

What is HIPAA authorization? Health Insurance Portability and Accountability Act (HIPAA) authorization is a legal document that allows an individual’s health information to be used or disclosed to a third party, typically the individual named as health care POA. This waiver can be customized to some extent, allowing for sharing some information while keeping other information private. 

Take the following steps to get health care documents in order and consider adding new COVID-19 directives: 

• Locate your health care proxy, living will, and HIPAA authorization (and if you don’t have them, get them drafted).

• Confirm that the documents still reflect your wishes. Some questions to ask:

• Is the named agent still appropriate?

• Do you have back-up or alternate agents in case something happens to your designated POA?

• Review the documents to see if they need to be updated to reflect current circumstances. For example:

• Consider whether or not you want life-prolonging medical treatment used if a recovery is unlikely.

• Consider an update to the definition of "medical treatment" to specifically include the maintenance of respiration, nutrition, and hydration by artificial means.

• Consider the definition of "extraordinary measures" and whether they might make sense under certain circumstances, such as the use of a ventilator in treating COVID-19 related illnesses.

• Consider adding language for how your POA can communicate with medical staff and whether email, video conference, and other means of communication are acceptable.

With COVID-19 in our midst, now may be a good time to hold a family meeting to lay the groundwork for a solid estate plan, including the addition of health care proxies for all family members, to help manage expectations for all involved. Making sure that plans are set up for you and your family in the best of times, will pay if the unthinkable happens. 

If you have questions, please contact us.

MARKET UPDATE
COLLEGE AND TAX PLANNING
401(k) ALLOCATION
GRAPHIC OF THE MONTH

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