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A Baker's Dozen of Resolutions for Procrastinators in Legal and Financial Matters
02-28-2005

A Baker’s Dozen of Resolutions for Procrastinators in Legal and Financial Matters

Are you a procrastinator when it comes to your legal and financial matters? Most of us are. Here are a baker’s dozen of steps you can take in 2005 to make life easier for you and your family in case you become incapacitated and at your death.

1. Sign a financial power of attorney, living trust or other document listing who is to handle your financial affairs in case of your incapacity and how your financial affairs are to be handled.

2. Sign an advance directive stating how you want health care decisions to be made for you in case of your incapacity. You should include instructions on whether you want life supports and tube feeding in case of terminal illness. Discuss your wishes with your physician and make sure a copy of your advance directive is inserted in your medical record.

3. Sign a will or living trust spelling or who is to get what and who is to be in charge of settling your estate at death. Make sure you have both a primary plan and a clear contingent plan of disposition of your assets assuming everyone you name survives you and you own at your death what you own now. Your contingent plan should cover who gets what if one or more of your beneficiaries predeceases you or your dispose of or acquire property later. Your contingent plan is as important as your primary plan. Do not assume that you can always deal with your contingent plan later if a beneficiary predeceases you. Later may be too late, in case you become incapacitated, or if you forget or procrastinate too long, and you die without making the necessary changes.

4. If you have already done steps 1 through 3, then review all those documents to make certain they are up-to-date and reflect your current thinking.

5. Prearrange your funeral and burial. Write out your funeral and burial instructions.

6. Make sure that the persons you name to act for you in case of incapacity and to settle your affairs at your death (your attorney-in-fact, trustee, and executor) are willing to act.

7. Discuss the important decisions you have made with your family. The trauma of incapacity and death can be eased by having a frank discussion of these matters with family while you are alive and capable of expressing your wishes.

8. Make a list of instructions to your family describing your wishes on how your affairs should be handled in case incapacity and at death, and giving your reasons for the manner in which your estate is to be distributed at your death. For instance, explaining in a letter why you are treating your children differently can minimize the risk of hurt feelings and avoid leaving a lifelong legacy of bitterness.

9. Review your investments to make certain you are getting the maximum return on your investments at least tax cost. Consult a financial planner or tax adviser, or take a class or read a book on investments.

10. Do a net worth statement. If your net worth is over $950,000, take steps to minimize or eliminate death taxes.

11. Find and review your documents of title, such as deeds and stock certificates, to make sure they reflect how you want the ownership. Review primary and contingent beneficiaries of life insurance policies, IRAs, annuities and other beneficiary contracts to make certain they all list your choices of first and second beneficiaries.

12. Make a list of all your important documents and their locations, and a separate list of the names, addresses and telephone numbers of your lawyer, insurance agent, physician, tax adviser, financial planner or other professional advisers. Make sure the list will be accessible to your family members in case of your incapacity and at your death.

13. Review all your insurance policies (life, homeowner’s, Medicare supplement, long term care) to make sure they provide the coverage you need and that you are not paying premiums for insurance you do not need. Review your insurance needs with your insurance agent or financial planner.

Permission granted by Rees C. Johnson, P.C., copyright 2004
About the author
Rees C. Johnson received his J.D. from Yale Law School in 1966. An experienced estate planning attorney he is a frequent lecturer on wills, trusts and probate. Mr. Johnson is a member of the National Academy of Elder Law Attorneys, the Estate Planning Council of Portland, Inc. and a former member of the executive committee of the Estate Planning and Administration Section of the Oregon State Bar. Mr. Johnson may be contacted at rejlaw@rejlaw.com