Designate Beneficiaries For Your Financial Accounts

As you acquire more financial assets, you should ensure that you have named beneficiaries for your bank and investment accounts. These individuals will inherit your assets in the case of your death. Generally, spouses and children are named as beneficiaries for financial assets. Your financial institution can provide documents to have your beneficiaries on record. 

Power of Attorney

A power of attorney is an official document that appoints an individual or organization to take legal actions on your behalf. If you are incapacitated or in the event of your death, it can be used to make decisions about your money, your property or your medical care. A number of power-of-attorney documents can be issued that cover a variety of circumstances. You may have a general POA, a special POA, a healthcare POA or a durable POA.

These documents require you to name a specific person or entity to make decisions for you. In choosing this representative, you may wish to have a spouse, close sibling, other relative, an attorney or an organization take on this role for you. The most important consideration is whether they can be a trusted agent for your interests. They should be able to keep accurate records about decisions made on your behalf. They should able to be legally accountable for wrongdoing or mistakes that occur. You should also have a backup for your designated representative, in case of illness or death. Some people find it advantageous to choose multiple people to make decisions on their behalf.

Choosing Guardians For Minor Children

If you have children, the question of who will care for them if something should happen to you and your spouse is a major concern. Without proper planning, you could subject your children to legal fights for custody among family members and a great deal of disruption and ill feeling.

This problem can be avoided if you choose individuals that you deem appropriate to perform the task of raising your children they way you’d like them to be raised. Considerations such as age, religious background, educational level, financial ability and temperament may factor into your choice of legal guardian. Once you have decided on an appropriate guardian, you should discuss the matter fully with them to ensure that they are able to take on this responsibility. Then, your attorney can create a legal document, naming the individuals as guardians.

Make A Written Will

Creating a legal will may seem like a big step to individuals who are actively engaged in building their life. You may feel that you’re not ready to face the idea of dying and what may happen afterward. However, having a will is the best way to ensure your loved ones are legally protected, that assets transfer without impediment and that the expenses for survivors will be minimized.

You may not feel you possess sufficient assets to justify a will. However, in the adult years, most people have accumulated a house or condominium, a car, life insurance policies and other items that constitute “assets” that can be passed on to others in case of death. A legal will ensures that your wishes will be honored regarding your possessions, your funeral arrangements and other matters.

Nominate An Executor For Your Estate

On creating a will, you will also need to name an “executor” for your estate. An executor is an individual who is legally assigned the task of filing legal documents, paying bills, taxes and other debts, as well as distributing assets to designated inheritors of the estate.

It is a big responsibility that involves a significant amount of time and effort. Therefore, you should choose an executor carefully. This person will have both the honor and responsibility of managing your assets after your death. Usually, a spouse, sibling or trusted friend is chosen to do these tasks. However, you may choose to have an attorney or organization as the executor of your assets.

These legal activities may seen premature for millennials, but they can be an important tool for helping your loved ones if something should happen to you. With these tasks accomplished, you can continue enjoying your life and implementing your life’s goals, knowing your family’s legal and financial prospects have been secured.