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Money Matters for Seniors
Estate Planning: The Four Basic Documents of Your
Legacy
Estate planning can be difficult
, confusing but
4 basic tools needed
By
Robert Valentine,
TheMoneyAlert.com
November 6, 2006 - If the controversy over Terri
Schiavo showed us anything, its that estate planning is more important
now than ever before. Regardless of personal opinions, in the end, it
was Terri who really mattered. And it is your choices and beliefs that
matter when it comes to your own decisions. A Gallup Survey released in
June of 2005, showed that 60 percent of Americans dont have living
wills.
So how can you ensure that your legacy will be remembered for your
entire life and not your final hours or days? The best way to be ready
for major life and death decisions is to properly plan your estate. This
means an all-encompassing look at the decisions to be made, who makes
them, and who gets what. There are generally four major documents you
need to prepare so that your estate is in order
1. Financial Power of Attorney,
2. Will.
3. Living Will and
4. Medical Power of Attorney
The first is the financial power of attorney.
A financial power of attorney is one of the most
important steps in estate planning. Whoever you name as your financial
power of attorney makes all of your financial decisions. By specifically
picking someone to make those decisions, you help eliminate controversy
and stress. You also avoid the costly and lengthy legal process of the
court making your decisions.
A will is the central part of your estate plan.
Your will simply states who will receive various parts of your estate,
including savings, homes, and other assets. By specifically laying out
each asset and what person or charity it will be distributed to, you
make your wishes clear. Although you wont avoid probate, a will may
help reduce much of the court and the government involvement in your
estate.
Aside from a will, there is another powerful tool
that involves medical decisions while youre still alive, but possibly
incapacitated. This is called a living will.
A living will is one of the most crucial documents
in terms of medical decisions. Simply stated, a living will spells out
what specific medical treatments you do or do not want in the case of a
medical emergency that leaves you unable to make medical decisions.
Major medical choices, such as whether or not to resuscitate, or whether
or not to be put on artificial respiration can be decided within the
living will.
But a living will is only half of the medical
documents you should prepare within your estate planning. The other is a
medical power of attorney.
A medical power of attorney is a decision to
appoint someone to make medical decisions if you cannot. If you dont
have a medical power of attorney (also known as a health care proxy),
the decision automatically goes to your spouse. If you are unmarried,
then it goes to adult children or parents.
By specifically designating someone to make the
decisions, you make it clear who you want in charge, and what you want
done if the worst happens. While these situations are never easy, by
making it obvious who you want to make decisions and what decisions you
want them to make, your wishes are clear and it eliminates the
opportunity for someone else to claim otherwise.
These are simply the four basic documents youll
need when planning for your estate. There are many details to each
document, and many details regarding your overall estate, including
taxes. Its usually best to find a financial professional and qualified
estate planner to give you advice. By being prepared and educated, and
working with a financial professional, you can make sure that your
wishes are known. Most importantly, you can ensure that the legacy that
lives on in your name is the one that you choose.
Robert Valentine is a well-known expert in
the matters concerning investors. His articles on financial planning
matters that concern investors have been published by several
publications throughout the United States. You may visit his website,
www.themoneyalert.com to view some of his most popular articles.
Note: This article was submitted by Robert
Valentine of Financial and Retirement Management. Robert (CA Insurance
Lic #0C23496) is a Registered Representative of and offers securities
through Securities America, Inc., a Registered Broker/Dealer, Member
NASD/SIPC. Advisory services offered through Financial and Retirement
Management, a Registered Investment Advisory firm. Several of his articles on
financial planning matters that concern investors have been published.
Robert can be reached at (877) 732-2637.
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