A reader, who is helping her parents with their estate planning, asks HerMoney CEO Jean Chatzky about what needs to be on their checklist.
Twice a week, our CEO and resident money guru Jean Chatzky tackles your burning questions in the HerMoney newsletter. We’ve pulled some of the best to feature on our website — and this one made the cut! Got a question for Jean? Send it her way right here.
Q: “I am helping my parents, who are 80+, ensure their estate planning is in order. Do you have a good checklist of things we should make sure we have taken care of?”
A: Having an estate plan is important. Unfortunately, it’s a lesson many people learn the hard way. Here are a few of the key things your estate planning checklist should include:
A will: This is an obvious one, but so, so important. Many think you need a lawyer to draw up a will, but technically you don’t. You can make wills on your own via the web, on sites like Do Your Own Will or these services. If you go this route, I’d pay a lawyer just to look it over.
A living will and health care proxy: Health care proxies (also called durable medical powers of attorney) deal with medical issues that arise while you’re alive but are unable to make decisions (for instance, if you are unconscious). Living wills, on the other hand, usually deal with end-of-life decisions. Both are important.
A digital power of attorney: As Ellen Kate writes for HerMoney.com, having a digital power of attorney (POA) is becoming increasingly necessary. That’s because you don’t own your digital assets in the same way you own your physical property. “A digital POA assigned in a legally binding document gives you a better shot at having all your digital money, digital assets, digital IP and social media accounts left to your beneficiaries,” writes Kate.
Access: As Kate notes, you’ll want to make sure your parents know the whereabouts of each other’s official documents, like birth certificates, marriage certificates and Social Security cards. You should also make sure they both know how to access financial information related to bank accounts, mortgages, credit cards and investments that are held jointly. And passwords! Passwords are key!
Getting things in order in advance of a loved one’s passing can be uncomfortable (and let’s face it, a little depressing). That said, it will make things a lot easier in the long run.
MORE ON HERMONEY:
- Protect What You’ve Built: Estate Planning Strategies Every Woman Should Know
- How To Set Up An Estate Plan In Three Easy Steps
- Why Estate Planning Isn’t Just For The Wealthy
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