Part 3 (2/2)

2 Durable power of attorney for finances and for health care

3 Living will (pull-the-plug papers)

”Isn't this a book about savingme to pay an attorney to draw up these documents?”

You could use lower-cost alternatives, certainly You can try to write a will yourself with the help of books You can write it with the help of a coraets rave reviews You could buy the Will & Trust Kit sold by personal finance guru Suze OralZooh up the ht This is one of those tiets yourto pay the bills if you're physically unable, and should doctors keep you on artificial life support?

Rules vary by state on this stuff For exa of a will your state requires? If your life is the least bit coed family members, blended families, a special-needs child-these docuood attorney alk you through all the scenarios, including ht about

In short, spending a few hundred dollars for an estate-planning attorney to create these docu an attorney Your state bar association will certainly have a list But you ht ask for recommendations from friends, relatives, and other professionals you use, such as an accountant

1 Will

A will is often the centerpiece of estate planning Wills aren't only for rich people A will dictates who gets your money and property if you die It dictates ill care for your minor children If you die without a will, the state decides

If you're -the house, oes to your spouse But what if you both die at the same time? Think car crash It's not so clear-cut

If you're paying by the hour with an attorney, you can savedecisions before you enter the law firuardian You'll need to decide on an executor of the estate, which is the person who ht after you die List your assets and liabilities and decide which beneficiary gets which asset

If you already have a will created years ago, whether by an attorney, software progra an attorney review it again, especially if your life circunificantly since the as drafted

QUICK TIP

This estate-planning move is absolutely free Make sure all your financial accounts have up-to-date primary and secondary beneficiaries These accounts include retirement plans, bank accounts, and life insurance policies

2 Durable Power of Attorney for Finances and for Health Care

If you're incapacitated, you'll need someone to make decisions about your money and your medical treatment These are really different issues and can be different people, but you should proactively decide who it should be in both cases These docu docu Will

A living will addresses the scenario that, for so kept alive artificially, being fed through tubes and your quality of life has di What type of end-of-life care do you want if you're ter Trust?

There's nothing wrong with a revocable living trust, which is often touted as an alternative or suppleal document allows you to transfer assets into a trust while you're living, which can help bypass the court process called probate after you die Itprobate-which is expensive in some states, such as California-andtrusts are oversold and cost ht cost 300, whereas a living trust h you can prepare a trust yourself Trusts also require more maintenance than a will For exa you own-personal property you have now and will buy in the future-into the trust That can be a lot of paperwork, both when setting up the trust and going forward

If you're considering a trust, have a good reason to get one What is the cost now, and what are your heirs likely to save later, when you die? And again, if you want a trust, consider having it drawn up by an attorney, instead of a salesperson selling boilerplate trusts

Identity Theft

Identity theft is when soally uses your personal information, such as a Social Security nuain

Most important about the advice here is what not to do For example, unless you've been a victim of identity theft, you don't need to pay for credityour credit reports for free, as we'll talk about in Chapter 6, ”Credit When Credit's Due”

nobody needs to pay for identity theft insurance, which just rei up identity theft It s and phone calls, and perhaps lost wages and attorney fees But few victims of identity theft actually incur any out-of-pocket expenses

Instead, focus on these three, simple steps to help prevent identity theft

Identity Theft, 1-2-3