Four Cornerstones of Your Financial Planning

by Michael Murphy CLU, ChFC, Life MDRT

These are ALL very important documents, they benefit you, they benefit your loved ones

Wills:   Each person should have a will.  In it you will designate an Executor/Executrix, the person who will have the authority to manage your estate after you have passed.  You will also designate the distribution of your property, the things that you own in your name: bank accounts, investment accounts, real estate, your home, personal property, etc.   (Jointly owned assets will pass automatically to the surviving joint owner.)  It will also stipulate your burial/cremation instructions.
If you do not have a legal will when you pass, the State of Colorado has a will for you and will also designate an Administrator to probate your estate.  A state appointed Administrator will distribute according to State Law and may not accomplish what you intended.

Durable “legal” power of Attorney:  This document gives someone; a spouse, child or children or a close personal friend, the ability to make financial decisions for you if you are incapacitated and unable to execute legal documents.

Medical Power of Attorney & HIPPA authorization:    These documents give someone; a spouse, child or children or a close personal friend, the ability to make medical decisions for you if you are incapacitated and unable to tell doctors or hospitals your wishes.  The HIPPA document also designates who may have access to your medical information.  These documents work together to be sure your wishes are honored.  Without this document the doctors or hospital will make decisions for you and may prevent your family from knowing just what is going on.

“Living Will” DNR and End of Life Decisions:  Well, just how long do you want to be kept on life support?  What should the paramedics do?  When is it time to let go?  How do you want to be treated?  Without this document your family is left with no idea what you want and will suffer, no matter what decisions they end up making.  Help them out by deciding in advance.  Without this document, medical professionals will do everything in their power to keep you alive, no matter what.

Trusts: Probate free but not necessary, however, they may provide a convenient, orderly way, to manage assets passing to your heirs.  There are many different types performing many different jobs.