Putting our Personal and Financial House In Order
As human beings we procrastinate. Especially when it comes to dealing with issues we are uncomfortable with such as death. When we become terminally ill or the end of life is near, we can no longer delay and we must make important decisions to put our life in order and to protect the ones we love after we have departed.
There are several items that need to be complete. Let’s look at the list:
1. Health Care Directive or Living Will
It is very important to have this in order so that it will reflect the medical care that you do and do not want to receive. Keep it simple so that it does not become a guessing game as to what your intentions are for those that will be carrying out your wishes. Make sure that you choose a person (proxy) that you trust to make decisions for you should you become incapacitated. Make duplications of the original and make sure that your primary care physician and your proxy each have a copy.
2. Durable Power of Attorney
Okay, this one is important! This goes into effect while you are still alive and it can turn over control of your entire financial situation to someone else. This document contains the most potential for abuse so you need to carefully consider who you select. You can make this document as broad or narrow as you wish. It is best to make this tailored to meet your specific needs and try to avoid using a one-size fits all form. There are four items that must be included. First, you must include who you want to be the Durable of Power of Attorney.
It is advisable to have a successor. The second thing you must do is name the Attorney-in-Fact and again it is advisable to have a back up person. The third item needs to be very specific, and in this case, more detailed because this is the area in which you state the powers you are granting. Make sure you make it clear, especially when dealing with gifts and retirement accounts. Finally, you need to decide if this is an Immediate Durable Power of Attorney or a Springing Durable Power of Attorney that will only take effect should you become physically or mentally incapacitated.
3. Beneficiary Designations
It is very important that you make sure that all of your beneficiary designations are up to date for any life insurance policies, annuities or retirement accounts. If you have created a joint account for an asset to make things easier, but did want to leave that asset to that same person, you can use the Durable Power of Attorney or a Living Trust to pass the asset to the person/s that you request.
4. Wills
Everyone needs a will….if you do not have one, make sure you put one in place. Again, carefully select who you want to be the Executor. If you already have one in place, review it and make sure that it is in proper order and the beneficiaries still are in alignment with your wishes.
5. Planning Your Funeral
It is your day, plan it the way you want it! Be sure to make all your wishes clear. You can prepay a funeral home and plan everything yourself so it is exactly what you want.
6. Organ Donation
Donating your organs is one the greatest gifts of all….for someone else gets a chance to live! You may also donate your body to a medical school of your choice. Make sure to fill out a declaration of anatomical gift form and be sure that your family members and your physician are aware of your wishes.
7. A Will to Live By
This is not a legal document. Your Will passes along your possessions, however, your Will to Live By, passes along something even more valuable, your principles and values. On a personal note, I never realized how much this meant until my own father passed away. My mother came across a letter addressed to his children and it contained the wishes he had for us. My father was a very spiritual person and he expressed in words the kind of people he hoped we would be. My mother had it beautifully printed and framed with a picture of him and it is next to my bed so that every evening I can read it and remember what is really important and it gives me a chance to reflect on my own life to be sure that it aligns with my values. This one letter will be passed on and will hopefully serve as an inspiration and guide for future generations.
This whole process will force you to ask yourself important questions such as; what are your assets? What is the approximate value? Who do you want to have these assets and who will best manage them for you? If you are passing investments along, does your spouse or children understand them? Should you move your assets somewhere that will be easier for them to manage? Are your children spendthrifts? Do you want to control your assets from the grave to insure that it will last their lifetime? And, after you die, what do you want to happen?
Finally, do you currently have enough available liquid assets at this time in your life? If not, you may consider accessing your life insurance policy if you have accelerated benefits or selling your policy to a Settlement company to provide necessary cash. Here are some websites that may be helpful: www.organdonor.gov, www.uslivingwillregistry.com and www.naela.org. Once you have put your house in order, you truly will be able to rest in peace.
Christine Carlton
807 Cove Parkway
Cottonwood, AZ 86326-6515
(928) 649-1254
Hospice of the Pines does not endorse the above writer. This is for resource and informational purposes only.
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