Planning ahead can be difficult especially when unexpected tragedies and health problems occur. These tips can help you plan for the worst and help you make your personal finances “disaster-proof.”
Health-care directive: A health-care directive allows you to specify what kind of medical treatment you would like to have if you are not in a state to give consent. You may also want to have a medical power of attorney, which means you can appoint someone to make health decisions for you if you’re unable.
Durable power of attorney: A durable power of attorney applies to your property and finances. This document allows you to designate someone to take care of your money and other assets if you cannot. For example, if you’re in a coma, it would give your appointed person the ability to pay your bills.
Last will and testament: Having a will is especially important for people who have assets they want to pass along. It is also where you can spell out things such as funeral arrangements so that your family doesn’t have to wonder what you’d like while they are grieving.
“It is really hard to think clearly when you’re grieving, and funerals are not inexpensive,” said Patti Black, CFP, a partner at Bridgeworth Wealth Management in Birmingham, Alabama. Specifying your wishes, and even prepaying for what arrangements you’d like, can be a huge help to your family, she said.
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