Thinking About A Will

Although many people do not want to face the future and what may happen after they pass with their collective assets, it still is important at some point in time to sit down with either a Certified Financial Planner in New Jersey, a Philadelphia financial planner, or some type of NJ wealth management group and talk about a will.  By doing this, the future will be planned for and not have to be worried about it when difficult times may come.

“Every individual should possess and continually update these four vital documents.

• Last Will and Testament
• Power of Attorney
• Health Care Power of Attorney
• Trusts

Last Will and Testament

The Last Will and Testament is not something merely for old people on their death bed. The Last Will and Testament is also vital for young adults because you know how the saying goes, “you never really know.”

The Will is a legal document spelling out that when you pass away, where your possessions and assets will relocate.

The Will may include anything from jewelry and furnishings to a boat or car. Also the Will can contain any investment assets including life insurance and bank accounts.

The individual is allowed to make specific requests in the Will, stating who will get exactly what. The individual may also make a specific request to just divide everything equal among the beneficiaries.

Always make sure you are very clear in the Will. Leave no room for error or confusion.

Also, make sure you designate what’s called an “executor.” An executor is the person whose job it is to handle your affairs once you are no longer here. The executor will not decide who gets what, but rather will gather all the assets, pay off any debts, and handle any other looming financial matters.

Power of Attorney

The Will does not stipulate what happens when you are still alive but incapacitated.

The Power of Attorney handles such a matter. It’s a legal document that designates an individual to handle the important financial decisions when the particular individual is unable to do so.

The Power of Attorney is also important for the individual considering he or she is married and shares several joint accounts with the other individual. Without a Power of Attorney, the spouse could not sell or purchase a new home along with any other major financial decision.

Health Care Power of Attorney

Similar to the Power of Attorney, the Health Care Power of Attorney directly handles all medical manners.

The individual that is designated on the Health Care Power of Attorney is provided the responsibility to make crucial life or death decisions when the individual is unconscious or unable to do there self.

This includes such key questions as, “Do you want a ventilator or respirator,” “Would you want to be connected to a feeding tube,” and “Would you want to be given dialysis?”

Many highly encourage a HIPPA clause in every Health Care Power of Attorney document. HIPPA is a privacy act which states that medical personnel are not allowed to discuss a person’s confidential medical records with someone other than the patient unless there is language in the HIPPA including the designation of a power of attorney or health care power of attorney.

Trust

While maybe not quite as important as the other three documents, the trust still acts as something to outsmart the loopholes in the system.

Trusts are a great way to keep the assets in the bloodline and also make sure that the bloodline handles the assets responsibly. For example, if you wish to designate the assets to your children, and they’re still minors, a trust could protect those funds until the children grow of age and are much more responsible to handle that type of money.”

Doing this will help keep the future clear and not have it come into play when it is too late.  Dispelling confusion and anxiety at times when they should not be needed is beneficial for entire families.  Trying to find a financial advisor, or at least using a financial planning guide, is the best way to go about this.

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Posted by Jay McGrath | Leave a comment