This week our story begins with you and your spouse coming home from your anniversary dinner. The road is dark, and it begins to downpour. You’re in no hurry, as your children are spending the weekend at grandma’s house. You are driving slowly, hands at ten and two. Suddenly from around a curve, a truck loses traction on the slippery road and crosses into your lane. You swerve to avoid a collision, but then the car next to you sees the scene play out and panics, hitting the brakes and hydroplanes into you, slamming your car into the truck. Emergency crews rush to the scene, but they are too late to save your spouse. You are rushed to the hospital but kept in a medical coma to treat your injuries.
Although your spouse has died, your family has an appropriate amount of life insurance, so you and your children will be able to continue your lifestyle. Grandparents are close by so the children are being cared for by family. Your spouse’s Will transfers assets to you as the surviving spouse and funds trusts for your children. You also have an emergency fund that will get you through this. Financially, you’re prepared…but are you really?
You are unconscious and unable to make medical or financial decisions. The doctors don’t know how soon you’ll regain consciousness. A mortgage payment is due as well as the premium on your own life insurance policy. Who has the authority to access your accounts on your behalf? While your parents can look after the children, do they have access to your money to pay your bills while you are incapacitated? Who has the authority to make decisions on your medical care?
In the case of your spouse, the Will becomes effective. The executor follows the plan your spouse has made. However, because you have lived, albeit in an incapacitated state, what happens next? Despite the insurance policies, emergency funds and family support, without an Advance Directive for Healthcare and a Durable Financial Power of Attorney, you could find yourself in a situation where there is no one to handle your affairs or make decisions on your behalf.
In 2007, the Georgia Advance Directive for Healthcare replaced a Living Will and the Durable Power of Attorney for Healthcare. Essentially, it combines the two documents and considers other areas not previously addressed in either document, such as your preference regarding organ donation, feeding tubes, artificial hydration and/or certain life sustaining procedures. It also allows you to designate a person to have the legal right to make health care decisions for you. A Durable Financial Power of Attorney authorizes someone you trust to maintain your financial affairs, such as, sign checks, tax returns, deposit or withdraw funds, or even run your business. Without these documents, your relatives will have to ask a judge or the court to appoint someone to manage your affairs, who may or may not be the person you would choose to make such important decisions.
Sound estate planning goes beyond what may happen if you should die. To truly protect your family, you need to plan for instances when you do not die, but are in no condition to take care of your affairs. Do not let a horror story happen to you—discuss the Advance Directive and the Financial Power of Attorney with your estate planning attorney.
If you have questions regarding your estate planning documents, the experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
