WHAT WOULD YOU NEED TO KNOW IF YOU SUDDENLY HAD TO KNOW IT ALL?
Does one of these scenarios sound familiar to you?
You and your partner just enjoyed a beautiful trip to the Greek Isles, but while there, the other couple you were travelling with told you a terrible story about one of their friends who lost a spouse and is now at the mercy of the court system because they did not set up their estate properly.
Last night, you had dinner with a friend who cried while telling you she was completely overwhelmed trying to manage her finances by herself for the first time.
Your sister’s husband had a stroke, and she is now his primary caregiver, in addition to being the head of the household, and is responsible for keeping up with his needs as well as paying the bills and maintaining the house.
If something happened to your partner, would you know what to do?
Do you know how to access your bank account?
Do you know where your income comes from in retirement?
Do you know where all the important information is?
Have you talked to your kids about any of this?
These are questions no one likes to think about. And I don’t blame you for not wanting to think about them. If the worst were to happen, your concern shouldn’t even be about your finances or your house; it should be about what is going on with your family. However, the harsh reality is that money will matter in that instance because bills will still be due and you may need access large sums quickly.
That is why you should proactively plan now.
What does proactive planning look like?
Are your wills, medical directives, and powers of attorney up to date?
Do you have an estate attorney?
Do you know your financial plan – Where is your income coming from in retirement?
How do you access your bank account? Do you and your partner have Financial Powers of Attorney in place for each of you so that you will have the ability to access each other’s personal accounts?
Do you have a financial advisor?
Have you talked to your family members about this information so that you will not be alone having to make these decisions and remember everything on your own?
A financial advisor and estate attorney can help facilitate these conversations.
An Estate Attorney will be able to set up your estate documents, medical directives, and Power of Attorney documents. Estate Attorneys can also talk through the options that will be available to you if the worst-case scenario does happen and help you make informed decisions now.
Through your estate planning, your estate attorney may have suggestions for retitling ownership documents pertaining to property, businesses, and investment assets. A wealth manager will be integral to this part of the process as well. A wealth manager will take your estate documents and ensure your accounts are titled correctly, beneficiaries are correctly identified, and that your financial powers of attorney are on file correctly for your accounts.
Finally, coordinating a conversation between you and your family members is an important piece of this strategy. Parents worry about burdening their children with adult conversations; however, planning ahead is an ongoing gift you can give your children.
As we age, dilemmas like this become more and more likely. Planning now can alleviate some of the stress. Planning now is also a gift that you can give to those who love you by letting them know that you have a plan to ensure you are taken care of.