6 Documents Everyone Should Have to Protect Their Finances
For you to be in control of your future investments you need to protect your finances. In order to ensure that your future life and that of your children and other dependents is secure you must have documents that protect your finances as well as your properties. The following are 6 documents everyone should have to protect their finances:
These are documents that clearly indicate the person whom you would like to transfer your money to when you pass on. This document will act as a will if you do have one. Some people share their wealth among their children while some name their spouses as beneficiaries. These documents ensure that your assets and finances are protected and that there is no need of going to the probate court. However, it is advisable to always have your own copy of these documents.
Payable on death/ transfer on death instruction
Commonly referred as POD/TOD instructions are different ways of transferring assets and finances to a receiver without a written will. Payable on death instructions are usually used for bank accounts while transfer on death instructions are used for financial accounts that do not require a beneficiary form to be filled.
A living will basically a written document or statement that details your desires on how you want to be cared for or treated in case of a terminal disease particularly when you are not able to communicate or make decisions. It is like an advance directive to your family members and friends on what to do in case you become terminally ill. This document also includes the naming of the person who will carry out the directive (health care proxy).
Power of attorney
This is a document that gives authority to another individual to make decisions for you in case you are not able to. This document covers the legal matters that require your decision and also health matters. This document is vital to married people as it will give another person the authority to make decisions on your behalf even if you are incapacitated.
A last will is a document that guides the court or an attorney in making decisions on your behalf after you pass on. It helps in ensuring that all your wishes are fulfilled and that every beneficiary receives what you wanted him or her to get. To parents, this document helps in assigning the legal guardianship of your children or child to someone you trust and ensuring that your children are financially safe after your death.
Trusts documents are usually used by wealthy individuals to ensure that all their assets are well shared among their children especially from multiple marriages and beneficiaries after their death. It is important to point out that the courts of law are not allowed to interfere with trust documents.