Wills
A will is a document that specifies
who gets your property when you die.
It is generally the best way to name
a guardian for your minor children and
to name an executor for your estate. The
executor will handle your affairs when
the time comes to probate the will.
A will is such an important document
that it is critical to get professional
help to prepare one. A poorly written will
that confuses your heirs can be far more costly
to correct than the fees an attorney will charge
to prepare a will.
If you have minor children, a will is necessary
for you to name a guardian who can provide for
their care. You should consider naming a successor
in the event that the guardian you choose is unable
to take on the responsibility. Your children should
also feel comfortable with the choice. To help
financially with the children’s care, you may wish
to leave assets which the guardian can access. Gifts
for minors may be left in the care of a legal guardian
and/or in a trust.
Also, consider who you would choose to be executor
of your estate. The executor must use competent judgment
if your estate is to be distributed in the manner you
desire. For example, timing the sale of assets can make
a considerable difference in the value of your estate.
The estate fees paid to the executor are often established
by state law. If your estate is large and complex,
naming co-executors might be preferable, such as an adult
relative, a trusted friend or a financial institution.
A will is also your opportunity to leave
specific personal items to individuals who
would particularly enjoy them. Some attorneys
may suggest putting these directives in a
separate letter of instructions. Regardless,
making specific bequests can prevent conflicts
over who gets what — which can happen when the
will leaves the “contents of the home to be
divided equally” among the heirs.
When the will is completed, keep the
original where your survivors can easily
locate it. Your attorney’s office or a
waterproof, fireproof file at home may be
a wiser choice than a bank safe deposit box,
which in many states is sealed upon death
of the owner. Consider giving a copy to
your executor or let the executor know
where it can be accessed.
Finally, keep in mind that you should
review your estate plan whenever there is
a significant change in family circumstances
such as marriage, divorce, birth, adoption,
death or a change of your residence to a
different state. You should also review it
whenever there is a major change in your
assets or a change in the law. It may be
prudent to review your will annually along
with your other essential estate documents.
Powers Of Attorney
With a power of attorney, you can
give another individual the legal authority
to act on your behalf for a purpose you
designate, such as paying your bills, managing
your personal affairs or handling your finances.
You must be of sound mind and not under mental
duress to prepare and execute any of these
documents. Unless it is a durable power of
attorney, a general power of attorney expires
if you become incapacitated. You have several
options for authorizing another individual to
act on your behalf.
Durable Power
Of Attorney
For Financial
Transactions
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- Continues to operate even if you become unable to manage your own personal and financial affairs.
- As long as you are mentally competent, you can revoke a durable power of attorney whenever you wish.
- Consider executing a new durable power of attorney every 3 – 5 years to confirm your intention.
- Take your durable power of attorney to your financial institutions while you remain competent to confirm they would accept it.
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Health Care Directive,
Living Will Or Directive
To Physicians
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- Designates medical procedures you want taken if you become too ill to state your preferences.
- You can specify types of treatment you would reject or accept, such as no cardiac resuscitation, but maximum pain relief.
- You determine when your instructions apply, such as when your diagnosis is a terminal condition.
- Consult with your physician to determine your options.
- Leave a copy of your living will with your physician.
- Review your options periodically. Revise your health care directive to reflect changes in your preferences. New medical discoveries could alter your decisions.
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Durable Health Care
Power Of Attorney
Or Health Care Proxy
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- Allows you to appoint someone to make health care decisions on your behalf should you become incapacitated.
- Have it prepared by an attorney who specializes in the field to ensure it conforms to your state’s laws
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Letter Of Instructions
Unlike wills and powers of attorney, a letter
of instructions is not a formal, legal
document. Instead, it is a summary of
essential information that you prepare
as a way of helping your survivors cope
during a difficult time.
Keep the letter of instructions updated,
since the information is likely to change
over time. Store the letter in a safe and
readily accessible place and be sure family
members know where to find it.
If your wishes include donating your
body organs or tissues to transplant
facilities, you will need to sign the
proper forms to authorize the donation.
In some states, you can do this as part
of renewing your driver’s license, or
simply obtain the form from your local
Department of Motor Vehicles. Your physician,
local hospital or estate planning attorney
should be able to tell you what is required
in your state.
| Clarify
Your Wishes |
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Along with providing important information, you can clarify your wishes
concerning a variety of personal and financial matters.
The information you should include are:
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- Instructions on whom to notify and what to do immediately following your death.
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- Directions for handling any important financial matters that may need immediate attention.
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- An updated inventory of investments, insurance policies and other important
personal financial matters, such as any debts you owe or money owed to you.
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- Locations of any valuable documents, such as wills, trusts, deeds, military
records and birth or marriage certificates or divorce decrees.
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The USAA Educational Foundation publications,
A Guide For Your Survivors and Managing Your Personal Records
, offer more information.
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Basic Money Management
Basic Money Management
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