In January, I talked a lot about the importance of budgeting; in February, we focused on whether or not people have money problems vs. spending problems and how to tell the difference. In my last blog, I walked you through everything you need to know about your credit score.
What’s left? Getting your personal documents in order. This is a biggie, and too often something we overlook because we’re too busy shuttling the kids to-and-fro, working, etc. I’m guilty. But it’s not as difficult as you think. In fact, once you have a list, one or two meetings with an attorney can wrap it all up.
In “Money Rules: The Simple Path to Lifelong Security,” financial guru Jean Chatzky lays it all out in plain and simple terms. Here’s an excerpt from this valuable book, plus the list YOU NEED to get started:
“Your heart will stop or the tumor will grow.” (Yikes! That’s serious.)
No one likes to think about this, but you must put your life in order for the people who love you. According to Ms. Chatzky, four documents will do the trick:
1. A Will: This determines who gets your stuff, and, if applicable, the custody of your kids.
2. A Living Will: This tells the hospital whether you want life support.
3. A Healthcare Proxy: Lets someone else make medical decisions for you if you can’t do so yourself.
4. A Durable Power of Attorney: Allows someone else to make financial decisions on your behelf if you can't do so yourself.
Depending on how complicated and rich your financial life is, you may also want a trust or two that further stipulates how your assets pass to your heirs and can help you avoid estate taxes. But the aforementioned four are the biggies. If you’ve got them, you’ve done your job!
One more thing ...if you have elderly parents, don’t forget to ask them if they have the above documents and determine whether or not they are updated. Help them figure out who they need to talk to so that things flow more smoothly when the time comes. You’ll be glad you did!
No comments:
Post a Comment