I’m a big believer in planning (shocker, I know). Financial planning should start as soon as possible to help make your life easier in the future. A decline in health is inevitable, as much as I know none of us wants to talk about it. Not planning for it, when we know it will eventually happen, is only going to make a difficult time that much worse for you and especially your family.
Here is a list of things you should do to help make life easier when you eventually become incapacitated. Start with copies of the documents you need or the planning around them in the event of incapacitation or death.
1. Driver’s license
2. Social Security card
3. Medicare card
4. Health insurance cards
5. Passwords
This includes everything from computers, social media and even your phone’s passcode itself. Don’t forget to include the combinations to the safe and the safe deposit box information as well. Consider changing the safe deposit box into the name of your trust so that the trustee can access it if needed with a certificate of incumbency.
6. Property tax statement
Are taxes due soon? Maybe pay them ahead to avoid problems paying them in the near future.
7. Powers of Attorney (POA)
This includesboth medical for hospitals, rehabilitation facilities, nursing homes, etc. and financial for banks, brokerages, etc. If you don’t have both, you need them.
8. Bank statements
Is your name the only name on the statement? If so, this is why you need a financial POA. Your spouse cannot access your account that is solely in your name. TOD (or Transfer on Death) accounts used to avoid probate don’t help during your lifetime.
9. Wills and trusts
If your assets are in trust, then you may need a doctor (or two) to certify your incapacity. A trustee could then potentially take over for you.
10. Real property
Whose name is the property in? Hopefully not only in the incapacitated person’s name. Look at the deeds of each property. Don’t assume they are all deeded the same way.
It should not be hard to collect all of this information today, but in the event of your incapacity or death, they add layer upon layer of additional problems at a time when they are least wanted. A little planning today can save you and your family a lot of unnecessary stress. If you do not have some of these documents currently, then you need to see your estate planning attorney ASAP. If you do not have one, just reach out to us and we are happy to suggest several for you to consider.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a
Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations.
