Tax laws and regulations are complex and subject to change, which can materially impact investment results. The information herein is general and educational in nature and should not be considered legal or tax advice. Remember that beneficiary designations override how your will or revocable trust distributes your assets.įidelity does not provide legal or tax advice. If you were previously married, your former spouse may still be a beneficiary of some accounts, or you may have named, as a beneficiary, a friend with whom you are no longer in contact. Also, be sure that beneficiary designations on your life insurance, retirement, and bank accounts reflect your current wishes. "I wanted to make sure that my money goes where I want it to go, and the only way to see that done is to have a will." Jennifer decided her money will be left to friends and charitable institutions.ĭepending on the nature of your assets, you may also want to consider a revocable living trust. "If you don't have a will, it's really not clear what's going to happen to your estate when you die," she says. Jennifer clearly understood that state statutes determine who will receive the estate when there is no will, so she worked with an estate planning attorney to draft one as part of her overall approach to financial planning. A will is a must for anyone, because if there is no will, the probate court will rely on state law to determine the order of inheritance. Self-insuring may be an option for people with significant assets, but for others, having an insurance plan to address potential long-term care costs can help provide peace of mind.įor married people, spouses and children are natural heirs. Other options include estate planning attorneys and registered nurse health care advocates.Īnother planning consideration is long-term care insurance. "I don't have immediate family, but I have friends who were willing to help me," she says. However, those weren’t options for Jennifer. Single people who have adult children and intact relationships with their siblings, can easily turn to them to be the point person for medical decisionmaking. These documents must be in place to allow someone of your choosing to help medical personnel carry out your wishes. This spells out precisely what types of interventions you agree to if you are not able to communicate your wishes. "I handpicked the people I want making decisions for me, and I trust them completely," she says.Ī medical power of attorney, also known as a health care proxy, is a good starting point for making sure you have designated someone to act on your behalf to make medical decisions. Additionally, Jennifer chose a backup in case something happened to her friend. But after her mother's death in 2004, she appointed a close friend. Originally, Jennifer’s mother was appointed as her power of attorney. That could delay access to bank and investment accounts and make it difficult to access the money needed to pay bills. Without these documents, a court would need to appoint someone to handle important financial decisions for you. Powers of attorney for financial affairs appoint someone to act on your behalf if you become incapacitated, and are an important component of estate planning for single people. Put in place a power of attorney and health care proxy
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