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Important Papers
Insurance company statisticians (a colorful bunch) tell us that prior to age 50 there is a one in three chance we may be disabled for longer than 90 days. That disability may mean we become physically or mentally incapable of acting for ourselves. For that reason, it may be Foolish to look into a durable power of attorney granted to someone you trust, such as your spouse or an adult child. You may also want to add a medical power of attorney. Both will allow the person you select to make decisions on your behalf. Without those documents, your family will be forced to hire an attorney, go to court, and have someone appointed as your conservator and/or guardian to make decisions and conduct business on your behalf. That's a needless, time-consuming, and costly process that can be avoided with one or two inexpensive documents that an attorney can prepare today.

You may also want to execute a living will, sometimes called an advance medical directive. In reality, a living will has nothing to do with living at all. Instead, it's a silly name for a document that really says you want the right to die a natural death, free of all costly, extraordinary efforts to maintain your life when that life can only be sustained by artificial means. This document is available free at virtually every hospital in the nation. (See? We told you we'd sprinkle in a little good news here and there!) It makes such decisions easier on the doctor, the hospital, and your family. Used in conjunction with a medical power of attorney, this tool can spare your family a painful, drawn-out, and costly process. If you agree with this concept, then visit your local hospital, pick up the form, complete it, and let your loved ones know where it can be found.

Will It
Everyone has a will, even those who die without ever executing one. That's because every state has laws of intestacy -- that is, laws that dictate what happens to your property when you fail to execute a valid will during your life. Unfortunately, this often is not at all how you would have divided your property among your heirs if you'd had the choice. But -- get ready for more good news -- guess what? You do have that choice. Right now.

Be a Fool and see an attorney to complete one. It isn't that expensive to prepare and it ensures that your property will be distributed in accordance with your wishes. Don't use a preprinted, fill-in-the-blanks form will bought from a stationery shop or created through some software program. These are often out-of-date and may not conform to the laws of your state. That penny saved may be thousands of dollars wasted after you die. After you complete the will, make sure you review it at least every five years to make sure it's valid and that it still conforms with state law.

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