Protection
Protecting what you’ve worked hard to earn over your lifetime isn’t just about investing money wisely and making good financial decisions. It’s also about protecting your assets against the financial impact of an unexpected event and making sure your benefits are paid out according to your wishes if an injury or death occurs.
Importance of a Will
Having a will in place can help avoid family misunderstandings and ensure that your assets are paid according to your wishes. In the absence of a valid will, state law will determine who receives your assets, which may differ from what you had in mind. Experts suggest reviewing your will every three to five years.
Power of Attorney
What happens if you become incapacitated and need someone who can oversee medical or financial aspects of your daily life? The Power of Attorney allows you to designate a trusted person to oversee these details and act on your behalf.
You can assign a General Power of Attorney to an individual who is able to oversee everything (bank accounts, taxes or property) or a Limited Power of Attorney to an individual who is assigned to handle specific elements. You may also name a Durable Power of Attorney to make health care decisions on your behalf — not to be confused with a living will, which is used for end-of-life decisions.
As you think about these options, be sure to consider how much responsibility you’re assigning and to whom. Consult an attorney to learn more.
Trusts
A trust is a plan where a designated person(s), a trustee, holds your money and manages it according to a written, legal agreement. Trusts may be effective vehicles for handling some of your assets during your life or even after your death because they allow you to customize and control how your wealth is distributed. Trusts may not be for everyone. Consult an attorney and accountant before moving forward.
Electing Beneficiaries
Remember to designate a beneficiary(ies) for any retirement savings and life insurance benefits, as well as bank accounts and annuities so that your benefits and other assets are paid according to your wishes in the event of your death.
You should review and update your beneficiary designations if you get married, divorced, have a child or lose a loved one.
To name or update beneficiaries, visit each plan’s website.
Did you know?
Less than half of U.S. adults have a will. This means that most people are leaving what happens to their assets up to state law. Don’t be part of this statistic. Set up a will and review it periodically when there are changes in your family.
Retirement Planning Quiz
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