Do you need a living will and why?

I am often asked whether a living will is necessary and why it can be useful. This is because this document can remove many uncertainties and ensure that your affairs are well taken care of if you are no longer able to make decisions yourself. My advice is that everyone should have this drawn up.

What is a living will?
A living will is a power of attorney in which you record who may make decisions on your behalf if you become temporarily or permanently incapacitated. Consider situations such as dementia, an accident or a stroke. Without a living will, it can be difficult to arrange things such as selling your home or making donations. This would then have to go through a trustee or receiver, which is often a complicated and time-consuming process.

Why consider an living will?
With a living will, you determine who looks after your interests and what decisions may be made if you are no longer able to do so. You can also separate business and private matters in 1 document. This prevents an impasse and you can act immediately if necessary. In addition, a living will can be fiscally advantageous, such as the possibility of making gifts to your children.

Who can receive the power of attorney?
You can choose who becomes your proxy. Often this is the partner, children or other persons you fully trust. You can appoint one or more people and even stipulate that decisions should only be made jointly. This helps reduce the risk of abuse.

What can you regulate with a living will?
You can stipulate virtually all matters in a living will, for example:

• Asset management: Managing your accounts, investments and property.
• Sale of property: For example, selling your home if you move to a care facility.
• Gifts: Transferring assets to your children.
• Medical decisions: A medical power of attorney allows you to record your wishes for treatments.
• When does the power of attorney take effect?
• You can determine whether the power of attorney takes effect immediately or only when you become incapacitated. A power of attorney that takes effect immediately offers the opportunity to act quickly, but requires complete trust in the proxy. If the power of attorney does not take effect until you become incapacitated, this may cause delays because a doctor must determine the incapacity.

Notarization required?
Although it is not mandatory, it is advisable to have a living will drawn up by a notary. A notarized deed provides compelling evidence and prevents discussion about the validity of the power of attorney.