FINANCIAL CONSIDERATIONS

Power of Attorney for Financial Matters

A Power of Attorney for Financial Matters is a separate legal document wherein you can name who will take charge of your financial affairs. It may be written to become effective immediately or upon a specified event, such as incapacitation. With this document, you can authorize your agent to manage your property, take charge of your asset accounts, pay your bills, and make personal care decisions regarding your living arrangements. The authority you give to your agent may be as broad or restricted as you choose.

Because of the nature of this fiduciary responsibility, it is crucial that you select an individual with good financial knowledge and understanding, but especially someone you can trust to manage your finances according to your best interest, not theirs.

Conservatorship

A Conservatorship may be needed if you become incapacitated and have not prepared an Advance Health Care Directive or Power of Attorney for Financial Matters. Establishing a Conservatorship is a court process wherein the court would determine who would act as your Conservator. Your Conservator may be appointed to take charge of your personal and healthcare needs, financial matters or both. It is in your best interest to prepare an Advance Health Care Directive and Power of Attorney for Financial Matters in order to have a say in who will best manage your care and finances in the event of incapacitation.

Life Insurance

Life insurance provides financial support to those who survive the policyholder. It is designed to help survivors continue to live the same quality of life they enjoyed prior to the death of their loved one. It also helps to pay off the deceased’s remaining debt. An added benefit of life insurance is that its proceeds may pass to the beneficiaries free of probate. While it is beneficial, it does not offer many of the benefits of a Pre-Arranged Funeral Plan or “Funeral Insurance”.

Death and/or Survivor Benefits

If you are working and paying into Social Security, some of the Social Security taxes you pay are applied toward survivor benefits. The amount of these benefits will be determined by the Social Security Administration. For answers to your specific questions, contact the nearest Social Security office or call (800) 772-1213 between the hours of 7 a.m. and 7 p.m. weekdays. Informative publications are available free of charge at your local office or on the internet at www.ssa.gov.

If you are an honorably discharged veteran, you may be eligible for burial in a National Cemetery at no charge to you. Your survivors may also be eligible for a number of benefits. Some of the benefits currently available to survivors include a burial flag, presidential memorial certificate, headstone or marker for the grave or niche of the veteran, and, in some cases, burial allowances. As a general rule of thumb, only those who are receiving a regular check from the VA are eligible for monetary burial allowances. For specific questions regarding eligibility, call (800) 827-1000 or go to www.va.gov.

It would also be wise to check with the following institutions to inquire about any potential death or survivor benefits that your family may be entitled to:

  1. Current or Former Employer;
  2. Union
  3. Pension Provider;
  4. Fraternal Organizations