Get Your Affairs in Order Before Serious Illness Strikes
By Kristi Vaughan
Do you think about the possibility of getting seriously ill? Probably not. Few people do. But just in case, are your affairs in order? There are several financial and legal steps you might want to consider, just in case.
Medical directives
What would happen to you if an accident or sudden illness put you in the hospital and you weren’t able to convey your wishes to the doctor? Have you designated someone to speak for you? Do you have a “living will?”
A living will, also known as an advance medical directive, can ensure that your medical wishes are followed should you be incapable of doing so. Typically a living will states your wishes on the use of life sustaining equipment and procedures, designates someone to act as your agent in health care decisions and states your wishes concerning organ donation.
The state of Virginia’s Department for the Aging offers an Advance Medical Directive form that can be printed out. To be valid it should be signed in the presence of a witness. Because requirements for living wills can vary by state, you will want to check with local medical authorities for your state’s specific needs.
Estate planning
Anyone with assets or dependants should have some kind of an estate plan. At its simplest this can mean having a will. If you have significant assets you’ll probably want a more elaborate estate plan. This could include trusts, custodial arrangements and estate tax planning.
Estate planning is not a job for one expert alone. Chances are, at the very least, you will need the services of an attorney, a tax accountant and a financial planner. You also may want to consider giving a “power of attorney” to another family member or advisor should you become incapable of making decisions.
Power of attorney authorizes someone else to act in your behalf. There are several types of power of attorney and different degrees of responsibility that can be designated. An estate attorney can help you draft a power of attorney. AARP offers a self-help guide, “Financial Powers of Attorney” that can help you understand the different types and some of the questions you will want to answer.
Other steps to consider
Medical directives, wills and powers of attorney are key legal matters that should be resolved well in advance of their being needed. But so, too do estate planners recommend:
- Make important decisions early - Estate planners recommend that you make, and document, important decisions (living wills, financial disbursements, etc.) long before they are needed. This minimizes the possibility of a hurried decision or loved ones making a decision regarding your care that is not what you would have chosen had you been able.
- Talk, talk and then talk some more - If you’ve kept secret your financial affairs, medical wishes and other similar topics, now is the time to open up. If your parents, spouse, children, siblings or friends, don’t know what you want, they can’t be of much help.
- Get organized - You may know where all those important papers are stashed but that doesn’t mean anyone else can find them! So do everyone a favor and make a list. Include your desire on funeral plans and you can avoid a lot of second-guessing among family members.
