It’s an uncontestable fact: time passes and people do, too.
Planning for incapacity and death, though sensitive, is a loving act that ensures peace of mind for you and your family. To make the conversations easier and the next steps clear, five “must-do’s” will help you create a plan that comforts you and your family:
1.) Designate a power of attorney
A power of attorney (POA) is a legal document that authorizes a designated individual to act on your behalf if you are unable to do so. Contacting an attorney licensed in your state is the best place to start. Before you designate an individual, ensure they are comfortable fulfilling this role, know where your POA document is located, and can access it easily. As an additional precaution, name a successor POA in case the primary individual is unable to fulfill their duties.
2.) Designate a medical power of attorney
A medical POA allows you to designate a trusted individual to make medical decisions on your behalf. This document combined with a living will, which can also be created by contacting a licensed attorney, is a smart way to detail your preferences for medical and end-of-life care.
3.) Create a will
A will is the foundation of your estate plan, as it ensures that your assets will be distributed according to your wishes after your death. Hiring an estate planning attorney who is licensed in your state is recommended, as they provide guidance suited to your assets and intentions. When drafting your will, designate a personal representative to oversee the administration of your estate. As a failsafe measure, consider naming a successor in case the primary representative is unable to fulfill their duties. Ensure that the appointed individual knows where your will is stored and can access it when needed.
Settling an estate is a great deal of work and will likely bring stress to your family during their time of grief. Keeping this in mind, you may want to name a corporate administrator who is well-versed in estate settlement to help your family navigate this process. Having a corporate administrator may prevent family tension, as they can act as the “bad guy.”
4.) Designate trusted contacts
A trusted contact is someone you designate to be contacted by your financial institution in specific situations, such as suspected fraud, unusual account activity, or concerns about your ability to manage your finances. Trusted contacts do not have control over your accounts or make financial decisions on your behalf, but can be made aware if concerns arise.
5.) Streamline your finances
Grief is a bumpy road, so it’s important to make the financial pathway easier for those you leave behind. Create a personal financial statement that lists your assets, debts, and with whom they are held. Consolidate multiple accounts now to make tracking and administration easier. BCT Wealth Advisors offers a free Personal Financial Statement and Estate Checklist to get you started.
Implementing these five steps will ensure that your wishes are honored, and your family is well supported. For expert advice, connect with us to create a financial plan that provides peace of mind for you and your loved ones.
Contributed by: Stacy Duranko, AFIM, Vice President, BCT Wealth Advisors