2012, August

Why You Need a Health Care Directive
(0) Why You Need a Health Care Directive

No one expects the unexpected. Each day of our lives, we run the risk of being struck down by disease, illness or accident. Any one of us could find ourselves in a hospital bed, unable to speak and unaware of our surroundings, clinging to life but facing imminent death.

Yes, I know that's a really depressing way to jump into an article, but I'm trying to make a point. Being prepared is a good thing. We don't like to think about these things, but they do happen. If you were in a serious car accident and were given little chance of survival, your family would be devastated. Would you not want to spare them some pain and stress if you could? Of course you would. That's why you should make an Advance Medical Directive.

An advance medical directive (also called a health care power of attorney, personal directive, or living will) is a document which accomplishes two things: (1) It lets you name someone you trust (such as your spouse, partner, sibling, or good friend) as your agentsurrogate or proxy (basically an attorney-in-fact), who is authorized to make medical decisions for you when you are unable to do so. (2) It also allows you to set out your wishes about the extent of medical care you want to receive if you are in a persistent vegetative state (coma) or if you are likely to die from an irreversible condition.

The underlying principle of an advance directive is to allow you to exercise your right to decide whether or not you want your life to be prolonged by artificial means, and to instruct your caregivers how much or how little treatment you want them to administer. Because these instructions are written down at a time when you were still able to communicate them, they can inform your loved ones and physicians of your wishes and help guide their decisions.

You should discuss your wishes with the person you name as your agent so that he or she knows the circumstances in which you would not want to be resuscitated or kept on life support, whether you would want pain relief or other medications to be administered, and even whether you wish to receive fluids or nutrition intravenously.

An advance directive only becomes effective when you are no longer able to make your own decisions. If your medical condition is temporary, the directive will cease to be effective as soon as you regain mental capacity. Many states, provinces and countries now recognize the patient's right to refuse life-sustaining treatments and to die with dignity, although some jurisdictions have restrictions on certain decisions that a surrogate can make. For instance, in general your agent cannot make decisions involving abortion or sterilization. Your spouse, your agent and your doctor should all have a copy of your advance directive. And if you decide to change or revoke your directive, make sure they each have a copy of the changes or the revocation as well.

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What's the Difference Between an Heir and a Beneficiary?
(0) What's the Difference Between an Heir and a Beneficiary?

Q. I've been researching what I need to know to do my Will and set up a Living Trust, and I'm getting confused by some of the materials I've been reading. I keep seeing separate references to 'heirs' and 'beneficiaries'. Are they not the same thing? My son is the heir to my estate, isn't he? Doesn't that also make him the beneficiary?

A. That's an excellent question, and the answer is 'No'. I hope the following will clear this up for you.

Beneficiaries are the persons you name in your Will to receive all or part of your estate property (or the persons designated in a Trust Deed to receive all or part of the trust property). They're called beneficiaries because they benefit from the terms of the Will or Trust. Any person or organization can be a beneficiary - it's up to you to distribute your property among them as you see fit. Most people choose to distribute their estate among their family members and close friends. You may also wish to gift a certain amount to a charity, club, society or service organization that is important to you.

Heirs, on the other hand, are determined by the laws of descent. An heir is someone who will inherit the property of a person (decedent) who dies intestate, i.e. without a valid Will. The laws of the jurisdiction in which the decedent's property lies will determine what the order of succession will be, but in general, the estate may go wholly or partially to the surviving spouse, the decedent's children (or if none of them survive, to the grandchildren), the decedent's parents, and the siblings. If there are no surviving members of the immediate family, the inheritance may then pass to other blood relatives - aunts, uncles, cousins, nieces and nephews. All of this depends on the degree of family kinship and the applicable laws.

So as you can see, there are very distinct differences between a beneficiary and an heir. Beneficiaries are chosen by you when you make your Will or establish a Trust. You can name yourself as a beneficiary of a trust, in many cases. And gifts can be distributed to beneficiaries through a trust during your lifetime. Heirs are determined by law in cases where the decedent has died without a Will. As long as you are alive, you have no heirs. They only become your heirs after you die.

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