Since the passing of the HIPAA privacy act, just about everyone needs an amendment to their trust, a new Advanced Directive for Health Care and a new Durable Power of Attorney for Assets. Without the proper language, you could get stuck on life support!
The new law is called the “Health Insurance Portability and Accountability Act” or “HIPAA” for short. The problem is that the new law does not allow your loved ones to get your medical information if you are incapacitated without the correct language in your documents.
To review, you have four documents:
1. The Living Trust is for assets titled in the trust.
2. The Will is for assets accidentally not titled in the trust.
3. The Advanced Directive for Health Care is for medical decisions.
4. The Power of Attorney for assets is for other important decisions.
Common updates:
First, amend your living trust so your “successor trustee” can get medical information to show that you are incapacitated. Second, prepare a new Advanced Directive for Health Care so your “health care agent” can get medical information to make the right decision if you are incapacitated. Third, prepare a new Durable Power of Attorney for Assets so your “attorney in fact” can get medical information to show that you are incapacitated.
Terrible errors occur when people do their own amendments. Don’t cross anything out on your paperwork or write anything in. It has to be done in a separate document. Changing something in one document can have ramifications on other parts of the legal documents.