ESTATE CONCERNS

The following is a glossary of terms, which may be beneficial for you to know.

A will is a written document with instructions for the disposing of property at death. A will can only be enforced through the probate court.

Power of Attorney

This is a legal document giving another person full legal authority to sign your name for you in your absence. This authority ends at death. This document usually relates to financial decision making and not decisions about medical treatment. In Florida, Durable Power of Attorney is valid for healthcare, which allows the durable power of attorney to make health care decisions for the patient, at any time. Various states differ as to the legal authority of a power of attorney. The hospice social worker can assist if you have any questions.

Probate

With a will, the legal process of filing a will is with the probate court. The court determines if the will is valid, hears all claims against the estate, orders creditors paid and property distributed according to the terms of the will. Without a will this legal process of the probate court is accomplished according to the laws of the state.

Living Trust

This is a written legal document into which you place all of your property, with instructions for its management and distribution upon your disability or death. The main advantage of a living trust is that it avoids the cost of probate on your estate.

A – B Trust

You and your spouse set up one common living trust, of which you each own one half. When one of you dies, this trust will split into tow separate trusts. The “A” trust is still a revocable trust while the “B” trust becomes irrevocable. The surviving spouse can receive the income from the “B” trust throughout his or her lifetime and if required, can use the principal of the “B” trust. The main advantage of this trust is that it fully uses the husband and wife's $600,000 federal estate tax exemption. Without this type of provision, one exemption is lost when the first spouse dies.

Insurance Trust

This is an irrevocable trust where you use the death benefit of an insurance policy or policies to provide tax free money that can pay estate taxes, provide income to family or provide funds to buy out a business. An insurance trust makes the probate process unnecessary. Viatical Settlements

A viatical settlement allows individuals with life threatening illness to sell their life insurance policy to an independent company for cash. The viatical company becomes the policy owner and receives the death benefit. The National Hospice Organization Insurance Agency offers information about viaticals or you may speak directly with your insurance company. Please be aware that different companies offer different rates. You can obtain information by calling 1-800-227-8121. If there are any questions about a particular legal issue, please contact an attorney.

Accidents or illness can take away a person's ability to make health care decisions. However, decisions still have to be made and if a patient cannot do so, someone else will. If not planned this may often cause the burden, delay and expense of court proceedings. Steps can be taken to control these decisions so that your own wishes will be respected.

Living Wills

Generally, a living will is a statement about the patient's desire regarding medical treatment that directs the doctor when the patient is no longer able to communicate their wishes. If the patient does not want to receive feeding through tubes or others artificial means of providing food or water, receive C.P.R, or be kept on a respirator, these wishes need to be specifically stated in the living will.

Surrogate Designation

If a patient is to sick to make decisions, close family members or a close friend usually will decide with the doctor what is the best for them. Most of the time that works, but sometimes everyone doesn't agree about what to do even if the patient has made a living will. One way to help ensure that the patient's wishes will be honored is to name someone who is trusted to make medical decisions. This person is named as a surrogate; to make only those medical decisions related to the care.

Remember, if this person is to make decisions about the use of machines and medical treatment when a person is seriously ill, that same person should be named in the living will. It is advisable to name a replacement in case the person chosen to make decisions becomes unable or unwilling to do so.

If a person decides to complete a living will or other advance directive, it is recommended they give a copy to the doctor, a close relative or friend and any hospital, nursing home or hospice where the patient is receiving treatment or care. If a person changes their mind, all those who have copies should be advised.

A living will does not affect life insurance and cannot be required as a condition for being insured or for the receipt of health care services. Any medical treatment that is used for the purpose of providing comfort care or alleviating pain will be continued. In the event that the patient has not named a surrogate, state law determines who will make these decisions. If there are questions about a particular situation, please talk to the hospice staff. They can refer you to a lawyer if needed.