Personal, Financial and Insurance Preparedness

1. Last Will and Testament (or Revocable Living Trust)

will

testament

is a legal declaration by which you designate one or more

persons

to manage your estate and provides for the transfer of your property at

death.

(You can get samples from the Library or from

www.uslegalforms.

com/dave

living trust

is an estate planning tool designed to avoid probate while

providing long-term property management. The term "revocable" means that you

may revoke or terminate the living trust at any time. A "living" document allows you

to continually edit and update it while you are alive.

2. Durable Power of Attorney (DPA) and Health Care Power of Attorney

DPA is a document that allows you to give authority to another person to make

financial/legal decisions and financial transactions on your behalf. It is called

“durable” when, by its terms, it remains effective even if you become mentally

incompetent. A Durable Health Care Power of Attorney is a document that appoints

someone else to make decisions regarding your medical care. (These are not

complicated and can be obtained from

www.uslegalforms.com/dave

3. Living Will

Generally, a living will describes which treatments you do or do not want applied to

you in the event you either suffer from a terminal illness or are in a permanent

vegetative state. A living will does not become effective unless you are incapacitated;

until then you'll be able to say what treatments you do or don't want. (Free – get it

from Hospice)

4. Video of Home and Contents

On video record and speak of items’ values and when purchased. This is needed in

the event of a fire, tornado, breaking and entering, etc. If no video, photograph

each room, closet and storage area of your home and prepare a detailed written list

of household and personal items along with copies of receipts (if possible). In the

event of fire or theft, you cannot be too specific. (Store video, photos and/or lists

away from premises.)

5. Checking, Savings, Certificates of Deposit, Stock Accounts, etc.

should be set up with Right of Survivorship. If two or more people own property

jointly with rights of survivorship and one of the owners should die, the deceased

owner's share of the property automatically passes to the surviving owner(s).

6. Life Insurance Policy Riders, Clauses and Provisions

a. Accelerated Death Benefit Rider

Many companies allow you to add an “Accelerated Death Benefit Rider,” even

after being diagnosed terminally ill. Simply stated, if you are diagnosed

terminally ill, some companies will advance you part of the death benefit while

you are alive. Some companies will even “pay” a portion of the death benefit if

you are admitted to a nursing home and are not able to perform two or more

of the activities of daily living (bathing, feeding, dressing, moving about,

toileting (getting on and off the commode, etc.) or continence. Of course, any

amount “advanced” will reduce the benefit payable upon death.

b. Short-term Survivorship/Common Disaster Clause

States that the beneficiary must outlive the insured for a certain number of

days before the insurance is payable. Common Disaster must be from the

same accident in order to apply.

c. Spendthrift Provision

Protects beneficiary who is known for being unable to handle money well. It is

designed to prevent them from spending their money too quickly on

unimportant items and then having nothing left to live on. It also prevents the

creditors of a beneficiary from claiming any of the benefits before the

beneficiary actually receives the money. The purpose of this clause is to keep

those to whom he/she is in debt from taking legal action to require the insurer

to pay the proceeds directly to them.

d. Contingent and Tertiary Beneficiary(ies)

A tertiary beneficiary is only entitled to proceeds if the primary and secondary

(contingent) beneficiaries are no longer living.

7. Leave Directions to Loved Ones:

a. Where assets are located, such as retirement plans, Social Security,

investments, name of insurance company(ies) for life insurance along with

policy number(s), etc.

b. Bills that need to be paid and when they are due.

c. Name of Life, Health, Disability, Long-term Care Insurance Companies, etc.,

giving policy numbers and contacts. Also include contact information for

insurance agency or agent who can assist in filing claims.

In the event the life insurance company has been, or is being, bought out by

another company, and the only information you have is the company name on

the original policy, you can get the company name of its new ownership and

contact information from the Department of Insurance by calling 1-800-

546-

5664.

d. Funeral arrangements, i.e. cremation, etc. Provide funeral/burial details and

ishes, if any.

e. Names, addresses and/or telephone numbers of individuals who should be

otified upon your death.

Personal, Financial and Insurance Preparedness

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