4/15/2024 0 Comments Estate planning document checklistAn Advance Directive is comprised of two sections: Durable Power of Attorney for Health Care (Part 1) and a Living Will (Part 2). This familiarity will help the agent make health care decisions that would be in line with the principal’s wishes.Īdvance Health Care Directive – This legal instrument outlines a principal’s wishes regarding the health care and medical treatment they do and do not wish to receive in varying circumstances. A health care agent should be someone close to the principal, someone who knows and understands their values. The agent is obligated, by execution of an Advance Directive form, to act on behalf of the principal’s best interests. This designation only comes into effect when/if the principal is disabled or incapacitated in some way. We highly recommend hiring an attorney before beginning this process even the smallest of errors or missteps can have major consequences.Ī health care agent is an individual chosen by the principal to make medical decisions for them if they do not have the capacity to do so for themselves. The following guide can assist a person in creating a functional and effective estate plan. How to Create an Estate Plan in New Mexico (6 steps) These estate planning tools cover medical decisions and health care (Advance Directive), financial decisions (Power of Attorney), estate distribution and family matters (Will), and general estate planning (Trust). The following documents will give the principal peace of mind knowing that all bases are covered in the event of an unfortunate accident or untimely death an Advance Directive, a Durable (Financial) Power of Attorney, a Last Will and Testament, and a Revocable Living Trust. An estate owner, or principal as they shall be hereinafter referred to, creating an estate plan will be thinking about what will happen to them, their family, and their estate if they die or become incapacitated or disabled. Main Difference – A Last Will and Testament must undergo the probate process while a Living Trust does not.A New Mexico estate planning checklist is a form that lists all of the necessary steps to complete an estate plan. Although, it’s recommended the creator (the ‘Grantor’) authorize the attached Self-Proving Affidavit which acknowledges the signature in front of either two (2) witnesses and a notary public. Signing Requirements – No witnesses required by State law. Afterward, the successor trustees become the owners of the trust. Therefore, the creator benefits from the assets in the trust until their death. Living Trust (Revocable) – Creates an entity with the creator being the trustee and the beneficiaries being the successor trustees. Signing Requirements – Required to be signed in the presence of two (2) witnesses.The estate will still have to go through the probate process which usually takes 6-8 months if no one contests. Last Will and Testament (‘Will’) – The most traditional way to transfer an estate after death. Benefits from Governmental Programs or Civil or Military Service ĭepending on the preference of the individual, a document will need to be created that allows the transfer assets and property in the estate to the beneficiaries.Estates, Trusts, and other Beneficial Interests.Banks and Other Financial Institutions.Signing Requirements – Must be authorized with the principal and agent(s) in the presence of a notary public.The financial agent will have the ability to handle all assets, if requested, of the principal.ĭurable (Financial) Power of Attorney – Allows an individual (the ‘Principal’) to select someone else to handle all or a portion of their financial activity. Most often, this agent is the same person as the health care proxy. For the same reasons an individual should want a health care agent (‘health care proxy’), a financial agent should be selected as well.
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