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Have You Taken This Step?

We have discussed Life Insurance in other videos, which is one of the foundational components of any estate plan.

The other foundational building blocks of an estate plan include a Will, Power of Attorney, and Healthcare Proxy.

A Will directs distribution of your assets and can appoint guardians of minor children. If you have kids…you need a Will!

Having a Power of Attorney allows someone to handle financial matters for you, if you are not able to.

A Health care proxy gives someone authority to make health care decisions for you.

Having these 3 documents will make it easier for your family to exercise your wishes if you are unable to. Having a written plan eliminates any confusion and avoids arguments. Everyone knows or has heard of a family that won’t speak to each other after a loved one had passed away. Don’t let this be you! This is usually because there wasn’t a clear written understanding of the deceased’s wishes. If these directives are spelled out it makes it easier for everyone. I highly recommend that everyone consult with an attorney to have them complete these three documents for you.

We have seen some clients go a step further in their estate planning and create Irrevocable Trusts and transfer their home, vehicles, and investments into the trust. Creating an Irrevocable Trust helps protect your assets from creditors and may help you become eligible for government programs like Medicaid. If you have or plan on taking this step for your estate planning be sure to notify your Insurance Agent or company of the change.

The named insured of your Home and Auto Insurance Policies would need to be updated to reflect the legal owner of your home and vehicles as the Trust. Since you would still have use of your home and vehicles, you would need to be listed as Additional Insured of your home and still listed as the drivers of your vehicles on your Insurance Policies.

If you found this tip helpful and would like us to review your insurance policies and provide you with a free no-obligation quote give us a call 585-663-2004.