Living will and power of attorney
The transition to retirement means different things to different people as does the actual age in which people turn the page to a new chapter in their life. Many factors contribute to this life-altering decision and many emotions are felt – everything from fear, stress and anxiety to the sheer excitement of being able to fulfill lifelong dreams.
During this time of life, while emotions are running high, it is also very important to make sure your financial matters are intact. Creating a well thought out financial plan as well as creating legal documents to ensure your personal, financial and health wishes are carried out the way you want. Managing your estate, regardless of the size, begins with working with an expert to help give you greater control, privacy and security of your legacy – the one you worked so hard to build. The documents you need to get started are outlined below:
Will
A will is a legal document that a person uses to express their wishes regarding the distribution of their assets and property as well as the care of any minor children. The American Association of Retired Persons (AARP®) reported in February 2017 that a Caring.com survey found only 4 in 10 American adults have a will. According to the same research, the number does jump significantly for those aged 53 – 71 (baby boomers). Of this age bracket, 58 percent have done estate planning and although this number is greater than half, it still indicates that over 40 percent of baby boomers have not completed will preparation.
A Power of Attorney
A power of attorney is a written authorization that gives a trusted family or friend the power and authority to act on your behalf in business, legal and financial matters. The rules and requirements differ from state to state but may be written to be effective immediately or only once, if it is deemed you are unable to act for yourself due to a mental or physical disability.
Health Care Directive (living will)
The health care directive is another legal document which specifies your health-care preferences should you become incapacitated or unable to speak for yourself. It also allows you to express how you would like your end-of-life care handled. If you haven’t made your preferences known, the state where you live will assign a close family member to make those decisions on your behalf. Having an advance directive may give you peace of mind.
Information Document
Another important document is one that contains bank account information, passwords, insurance policies, contact information for attorneys, financial planners and any other significant data regarding your personal estate and final wishes. In the event of an emergency, it would be comforting for loved ones to have this important information at their fingertips.
For over 30 years, I have helped families with varying income levels and financial portfolios with their retirement planning. One of the most practical pieces of advice that I have given clients during this time is to plan for their future by ensuring their loved ones know and are able to carry out their final wishes.
