What Is Advance Directive? Definition

Why it matters

Advance directives guide doctors and relieve family stress in a crisis. They do not deal with money, so they are not a substitute for a will or insurance. Rules and forms differ by state. Share copies with your doctor, your agent under the document, and family. Review them after major life changes. Planning ahead on both health wishes and funeral costs can make a hard time easier for loved ones.

Source: law.cornell.edu

Related terms

Legacy Planning: Legacy planning is the process of deciding how your assets, wishes, and values pass to people and causes you care about. It often includes a will, beneficiaries, and insurance.
Estate: An estate is everything a person owns at death, including property, bank accounts, and investments, minus debts. It is handled under a will or state law.
Probate: Probate is the court-supervised process of proving a will, paying debts, and passing a dead person's assets to heirs. Rules and time frames vary by state.
Final Expenses: Final expenses are the costs that come up near the end of life, including funeral or cremation, burial, medical bills, and small debts. Final expense insurance is built to help pay them.
Funeral Costs: Funeral costs are the expenses for a funeral or other final arrangements, such as services, a casket or urn, a burial plot or cremation, and transport. Prices vary widely by provider and location.

All 241 terms

Why it matters

Talk to a licensed agent.