Getting Your Affairs in Order:
10 Steps in Creating a Smart End-of-Life Plan
1. Have a will and update it periodically.
The will designates executors, guardians and
trustees. Your executor’s first task is to locate
your will, and you can help by keeping the original
in a fairly obvious place. A good start is to put your
will in an envelope on which you have typed your name
and the word “Will.” You should then place
the envelope in a fireproof metal box, file cabinet
or home safe. An alternative is to put it in a safe
deposit box.
2. Have a health care directive (living will).
A living will is a medical directive written in advance
that sets forth your preference for treatment in the
event of your inability to direct care. The document
may be drafted to include when the directive should
be initiated and who has the decision-making responsibility
to withdraw or withhold treatment.
3. Have a power of attorney. You should
name your spouse or a close friend or relative to have
power of attorney for you. Whoever you designate will
be authorized to manage your affairs, typically financial
ones, if you’re not able to handle them yourself.
4. Have life insurance. Purchase adequate
life insurance for yourself now to help your family
avoid financial pitfalls later. Having the right amount
of coverage will help ensure that the dreams you have
for your family will be realized even if you’re
not there to witness them. Determining how much life
insurance to buy can be complicated, so it’s important
to seek assistance from a qualified insurance professional.
5. Review beneficiary designations
for your various financial accounts, including group
and individual benefits like life insurance and 401(k)s.
Check annually to ensure those named in your insurance
policies and retirement plans are still relevant to
your needs and wishes. Many people are under the misconception
that if they have a will, they are covered. However,
beneficiaries designated in documents generally fall
outside the scope of a will, so it is critical that
you keep your records updated.
6. Specify where important financial account
information is located. It may sound like an
obvious thing to do, but few people keep a list of where
important records pertaining to their savings, retirement
plans, college-funding plans, mortgage, and insurance
reside. Fewer still could name them all quickly in an
impromptu quiz. Keep a master list and review it annually.
7. Specify where important non-financial information
and valuables are located such as marriage
certificates, birth certificates, titles/deeds for the
house/cars, passports, jewelry, safe deposit box key,
items in storage facilities, etc.
8. Specify your final arrangements
such as burial or cremation, where you want to be buried,
whether you want to be an organ donor, etc.
9. Have a list of professionals who
assist you with your family’s legal and financial
affairs (insurance agent, attorney, accountant, etc.).
10. Explain to heirs how your trust works.
Trusts are often a useful legal and estate-planning
device for protecting assets from estate taxes and providing
a vehicle to be sure survivors get proper administrative
and investment advice and counsel. An attorney is the
best source of information about the proper use of trusts
and whether one would be appropriate for you.
Reprinted with permission from
LIFE
Please visit them on the web at www.life-line.org
For Further Information contact,
Diane L.S. Ho
LUTCF, CLTC
808-531-5391 Ext. 305
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