642 - 5 Legal Documents You Need During a Pandemic
And now for some Good News Bank of America's hiring and looking to support local Communities Bank of America offers growth and support as well as the training and resources. You need to create a long lasting career like their award winning academy and Financial Adviser. Development Programs Bank of America's not only invested in your career. They're invested in you. Your health and safety are their number. One priority visit careers dot, B. of A. dot com slash money girl for your next career move. Pay Everyone I'm Laura Adams, and this is the money girl podcast where my mission is to give you the knowledge resources and motivation to manage your money, the best way possible and create a richer life I'm so glad you're joining me and I want to welcome you to the money. Grow community if you're new to the show, and if you're a longtime listener, I'm so glad to have your support. So this week. I WanNa talk about something. That is a little bit more serious I think as we're all grappling with how to stay healthy both physically and financially during the pandemic. It's really important to make sure that you and your family have the right emergency documents, and this is something that a lot of people put off until it's really too late, so no matter if you are living in a corona virus. Virus hotspot, or you don't know anybody who has contracted Cova did I? Don't think there's ever been a better time to review your legal documents or think about creating them. If you haven't thought about this before, so this show is for you whether you've already got all of your emergency documents in place whether you've been meeting to create them for some time, or you've never even thought about the topic of emergency documents. Documents. This is for you, so stay with me. We're going to cover different types of emergency documents that you need why you need them why you may need to update them if you've already got them. And if you get covert or any other unexpected illness or get into an accident, these documents help you manage your life. They help you manage your finances and essential decisions that you've gotta make. It's GonNa. Give you. You a lot more clarity and less stress if you have these documents in place during an emergency, so instead of being caught off guard during a difficult time consider if you should have five of the legal documents that we're going to cover the first one you've probably heard of. It's the last will and testament, and the purpose of a will is pretty simple. It's just to communicate your final wishes after you die. Unfortunately, there are lots of people who do not have a will, because they mistakenly believe it's something that's only for old people or for rich people. There for everyone, the fact is every adult should have a will. It doesn't matter if you've got lots of assets or very little. If you die without a will, the courts will decide what happens to your possessions, and even to the people in your life like a minor child, not your family and what you have a will, you should not forget to update it periodically to make sure that it addresses all your wishes, all your assets, and all your beneficiaries. In fact, my husband and I recently went through all of our documents and made sure that our will in particular. Particular was up to date. It had actually been quite awhile since we had taken a look at it, and we made some really important changes, so don't forget that periodically. You need to review these documents. Critical life events such as getting married divorced, having a child, losing a spouse or partner and lot of other things should trigger you to update your will, but it's really a good thing to just consider maybe every year. Maybe every January. It's part of something that you just remember to think about and just think of there any things that you need to change your documents. Now, if you're starting from scratch, and you WANNA, make a will make an inventory of your assets, so these are your bank accounts your investments in real estate that you own vehicles, expensive belongings, and maybe even sentimental possessions that you have and decide what you want to happen to these items when you're no longer around, you can list beneficiaries for specific items like maybe you know who gets a piece of heirloom jewelry. That's been in your family or who you want to get your artwork collection. You can also create distribution percentages such as fifty percent of the value of your assets go to. To Your partner and fifty percents would go to your child or to a friend. There are a lot of different ways that you can decide how to distribute your assets, and in addition to dealing with your possessions, a will allows you to name a guardian for your minor children, and don't forget to leave instructions for what you would want to happen to your pets and things like digital assets, intellectual property, and any business assets that you have, you can create a plan for your funeral such as where you want to be buried, and you want your organs donated. Someone must carry out your. Your final wishes and all the legal details, so you can name a designated family member, friend or an attorney to be your executor. This person will handle all the arrangements and depending on the size of your estate. This can be a pretty challenging and time consuming job, so make sure that the person you designate knows that their designated, and you know that they're capable and willing to do the job. The bottom line is having a will make sure death easier on those you love it can help keep peace in your family by settling disagreements minimizing bureaucracy, and even saving your ears from unnecessary. Unnecessary expenses you actually don't need a lawyer to create a will, but I would say if you have a high net worth or many different types of assets. It's a really good idea to hire an attorney. They're gonNA think about things that you need to include in your will that you may not think about, but if you can't afford an attorney, having even just a simple template for your will is better than nothing, and you can download those from a lot of different legal website, so just do a search for free online will template, and that might be a good place to start. All right the second type of legal document that you may need is a living will. This is a document that specifies what you'd want to happen. Regarding your end of life care, so this would help if you were unresponsive for an extended period, or maybe in the final stages of a terminal condition, having a living will make sure wishes clear when you're facing death, it's a pretty essential guide for family doctors who might need to know if you would want to extend your life by artificial means. To Die, without any interventions. The third type of document is kind of similar to a living will. It's called a healthcare proxy. This document allows you to designate someone to make medical decisions for you when you can't and you also hear it called a healthcare power of attorney or a healthcare surrogate. Imagine that you're in an accident or you come down with a severe illness, and you become mentally incapacitated. Having a healthcare proxy allows that person or even multiple people that you choose to be your representative to make medical decisions for you or even to admit you into a healthcare facility. You might want to name to proxies just in case one of. Of them isn't available. When you need them, so consider who you trust with your care and discuss the responsibilities of this, and also your wishes with those people, also some hospitals will not allow medical professionals to disclose any information about you even to your healthcare proxy unless you have something called a hippo medical privacy release. Hippo stands for health insurance. Portability and accountability and having that release means that your family can speak to your doctor about your medical situation without creating a legal problem for the doctor. So this is really important. Definitely consider having a hippo release in addition to a health care proxy a living well. Bank of America is hiring and looking to support local communities. Working for Bank of America is more than just a job. They offer growth opportunities support training and resources to help you create a long lasting career path like their award, award-winning Academy and Organization that ensures your success. Through coaching and development. The academy can help you learn about your professional interests and exposure to new opportunities they set you up to thrive both today, and in the future they also offer financial adviser. Development programs designed to support and nurture your growth in the. The field and you don't need finance background whether you're starting out in your career, you're looking to transition into financial services or your seasoned advisor. The Adviser Development Program gives you the right mix of course work, and on the job training to ensure Success Bank of America is not only invested in your career. They're invested in you. Your health and safety are their number. One priority visit careers dot B. of A. dot com slash money girl for your next career move. 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Slash money, Girl. All right. The fourth legal document that you need is a power of attorney, even if you don't ever need a designated proxy to make medical decisions for you, you likely need someone that you trust to help with other types of decisions, such as managing your finances or even legal affairs, creating a power of attorney allows another person to stand in for you as an agent. If you're incapable of making routine transactions like paying your bills or signing contracts, they're different kinds of powers of attorney, but the most common one is called a durable power of attorney. You can use it. It anytime you're not capable of doing something like selling real estate making insurance claims filing taxes or even making any type of financial decision, you can also create one or more limited powers of attorney, these name people to act on your behalf for very specific transactions during a limited period, so having a power of attorney is how the financial end of your life can run smoothly if you become incapacitated, and it's also a tool for giving someone the authority to manage nearly any aspect of your life. If you're simply unavailable, or you don't have time to handle it yourself. And the last type of document we'll talk about is a child-care authorization. If you're the parent of a young child, you should have this document. It will address a variety of situations such as whether your child's school or daycare can release them to another individual. You can use this authorisation to allow someone else such as a partner or a nanny to temporarily make decisions for your child in your unexpected absence. So even though your kids may be home right now, do to the pandemic. Make sure that you've got this authorization in place four point in time when they do go back to school. A common question or push-back that I hear is well Laura. I'm married, so doesn't that mean that my spouse can just take care of all these issues? And yes spouse may be able to make some crucial decisions for you, but you could both die or become a capacity at the same time. Also think about this. Let's say your spouse is in a coma in the hospital due to a disease or accident. If you had a financial hardship and you needed to. To sell some of your assets such as jointly owned investments real estate, it could be very difficult because each of you would have to authorize the transaction, and if your spouse was unable to do that, you would not be able to make some really important financial moves the way to get around. This is for married couples and domestic partners to give each other power of attorney you avoid having financial restrictions that way during a crisis and each of you should have. Have Your own wills and your own healthcare proxies also consider what would happen to your minor children. If you and your spouse were in an accident together, it's really terrible to think about, but you've got to name a guardian in your will, so the court doesn't appoint one four you that you may not like and another common question is. Where do I keep all these important documents? Well, you want to keep the original sign documents in a very safe place you. You definitely need to maintain the original somewhere like an attorney's office or at home in a fireproof say for even in a bank safe deposit box, but you also want to keep copies at home you WanNa. Keep them just in case you need them at night or on the weekend you'll have copies. Therefore you and you can also scan and upload them to a safe cloud base storage services such as dropbox. Evernote said that you've got them in multiple places. Do Yourself and your family a favor by getting all your emergency documents created as soon as possible, and if you've already got them as I mentioned, put a reminder on your calendar to make any necessary updates each year every few years it so much easier to prepare for a potential disaster than it is to recover from one that blindside you after a tragedy occurs, it may be too late to make critical decisions, so it's really important to get ahead of that and you're gonNA. Feel so much more at ease. That, you're prepared for some unexpected issue. Your emergency documents make sure that you and your children's future is protected, no matter what happens. I know this is a pretty heavy topic to think about specially right now with so much going on, but as I mentioned I think it's also a really good time to get all of these emergency documents in place so I hope it's been helpful. If you have a question or a dilemma, a great way to keep the money conversation going is within my private facebook group called dominate your dollars to request an invitation. Simply visit dominate your dollars on facebook, or you can send me a text message for immediate access just text. The word dollars do l. l.. A. R. S. to the number three three, four four I. Hope to see you in the group. You can also visit Laura de Adams. Dot Com to email me a money question. You can even record a voice message that I may be able to use the show, and if you don't want your voice on the show, you can just tell me that in the message. Just call three, zero, two, three, six, four, zero, three, zero, eight, twenty, four, seven to leave your message. Money girl is produced by the Audio Wizard Steve Ricky Berg with editorial support from Karen Hertzberg. If you've been enjoying the podcast, we would love you to take a moment to rate and review it on Apple. PODCASTS or wherever you listen to shows, that's an easy way to give back and show your support. You might also like the backlist episodes and show notes that are always available at quick and dirty tips dot com. That's all for now. I'll talk to you next week until then. Here's the living a richer life. If you're stuck at home, feeling isolated or worried about the state of things we hear a better helper encouraging you to take a mental health. Break when you can. If you need a little help. Getting started on one of your own. Here are few it is. Guys. We've been home for awhile now. Yeah, it's pretty common to feel little, isolated and Deville worried about the state of things right now. And we hear on the podcast and the people at better help really want to encourage everyone to take a mental health break when they can I've been doing a little project nothing too big something that I can accomplish and one day it sort of feeds my soul to start something and be able to see it through and finish it, and it can be the smallest thing like you know that drawer in your kitchen. That is the catchall drawer that just everything just falls in that drawer. I organized that drawer. You guys. It made my heart feel good. It may yeah I don't know how to explain it, but it was too small. Thing that I did and it. It got me sort of out of my head, and in my body a little bit. We also want to point out the folks at better help. Better help offers online professional counselors who can help if you are wanting to reach out and speak with someone you can talk to a licensed online therapist and find some relief some communication some connection. You can get affordable professional. Help when you want it wherever you our. Listeners get ten percent off their first month with the Discount Code stitcher. Get help, today. Go to better help dot com slash stitcher.