Cross-Training for Financial Fitness
By: The American Academy of Estate Planning Attorneys
www.aaepa.com blog.aaepa.com
John and Susan have been married for 38 years. Like many couples, early in their marriage, they gravitated toward a division of labor that worked for them. John is an amateur chef, so he handles the grocery shopping, the meal planning, and the cooking. Susan loves the outdoors, so she takes care of the lawn and the garden. Susan, who is a neat freak, does much of the cleaning, while John keeps track of the family finances.
John and Susan have done something else, something really smart. Despite their division of labor, each of them knows how to handle all of the others responsibilities. This way, if one spouse goes out of town or gets sick, the household continues to run smoothly. Meals are still cooked, the lawn is maintained, and the bills are paid on time.
Last year, when John had a mild stroke, this cross-training paid off in a big way. Susan knew exactly where to find Johns important medical documents. She had all the important information about his health and disability insurance coverage. When it took several months for him to get back into the swing of things, she was able to keep their finances on track without missing a beat.
You and your spouse likely divide the household responsibilities, but do you take the extra step and stay up-to-date on each others tasks? If you dont, you might want to start with your familys finances. No matter which spouse handles your familys budget, it is essential that both of you know some basic information. Heres a checklist to get you started:
- An overview of your basic monthly bills, including how each is paid and from which account
- The locations of your checking, savings, and brokerage accounts
- Your account numbers and passwords
- The email account and password where you receive billing statements
- An overview of your filing system
- The locations of your insurance policies, declaration pages, and/or cards, including:
- Health insurance
- Auto insurance
- Homeowners insurance
- Life insurance
- The location and details of your estate planning documents, including:
- Living Trust: Many people opt for a Living Trust to serve as the foundation of their estate plan. This tool allows you to plan for your familys security in case you become disabled. It also lets you distribute your assets without the need for probate in the event of your death.
- Will: Even with a Living Trust, a Will is a necessary part of your estate plan. A Pour-Over Will catches any assets left out of your Trust and allows those assets to be distributed in accordance with your overall plan. A Will also lets you designate a guardian for your children.
- Financial Power of Attorney: A Financial Power of Attorney allows you to name an agent to handle your financial decision-making in case you are incapacitated.
- Healthcare Power of Attorney: A Healthcare Power of Attorney lets you name an agent to make medical decisions for you in case you are too ill or injured to do so yourself.
- The names and contact information for each of your trusted advisors, including:
- Estate Planning Attorney
- Insurance Agent
- Financial Advisor
- Primary Care Physician
With a little planning, you can spare your family the confusion and stress that too often accompany hard times. If you do not have an estate plan, now is a great time to put one in place. The best way to do this is to connect with an experienced estate planning attorney. He or she can walk you through the process and design a plan that meets your familys unique goals and needs.
Set aside a few moments this week to sit down with your spouse and go through this checklist. Youll be so glad you did!
About Our Law Firm
The Law Firm of Flood and Masiuk, LLC is devoted exclusively to estate planning. We are members of the American Academy of Estate Planning Attorneys and offer guidance and advice to our clients in every area of estate planning. We offer comprehensive and personalized estate planning consultations. For more information or attend an upcoming seminar, please contact us at 215-322-6330 visit us online at www.floodmasiuk.com.
About the American Academy of Estate Planning Attorneys
This article is written by the American Academy of Estate Planning Attorneys. The Academy regularly publishes articles on various estate planning topics as a free resource to consumers. These articles are intended as an overview of basic estate planning topics and issues, and not legal advice. We recommend that you consult with a qualified estate planning attorney to review your goals.
The Academy is a national organization dedicated to promoting excellence in estate planning by providing its exclusive membership of attorneys with up-to-date research on estate and tax planning, educational materials, and other important resources to empower them to provide superior estate planning services to families in their communities. The Academy expects members to have at least 36 hours of legal education each year specifically in estate, tax, probate, and/or elder law subjects. Since 1993, the Academy has been a highly-regarded and sought-after resource for attorneys and consumers alike, and has been recognized by Consumer Reports, Suze Orman in her book, 9 Steps to Financial Freedom and numerous times by Money Magazine.
