What Is The Difference Between A Probate And Non-Probate Asset?
What Is A Payable-On-Death Or Transfer-On-Death Beneficiary?
A payable-on-death or transfer-on-death beneficiary is identified on a form that you have filled out with the financial institution. Examples would be a life insurance company, a bank, an investment company that may manage your 401(k), your IRA, your investment account. Filling out that form takes 5 or 10 minutes and yet it can be mainly the most crucial decision that you’ve ever made in your life. I find ironically that most of these companies do not promote that people fill out payable-on-death or transfer-on-death forms. It allows those assets to pass non-probate and can be distributed to your selected beneficiary in a much quicker fashion after your death upon the presentation of a certified copy of your death certificate. I recommend to every client that if you have non-probate assets that you fill out a payable-on-death or transfer-on-death form, you would be surprised how many people have come in my office, beneficiaries after their loved one’s death and that 5 or 10 minutes was never done to fill out those forms.
I Am Taking On More Responsibility From My Older Parents. What Do I Need To Make My Role More Official?
As our parents get older, they often involve their children more and more in their day-to-day lives, whether it be financial matters or healthcare matters. We tend to rely more and more on our children as we get older, so as their child, you need to make sure that your roles are official. The first things I recommend are to make sure that you have a power of attorney, a medical power of attorney, a medical directive and a HIPAA authorization for your parents. That allows you to make financial or healthcare decisions for your parents in the event that they’re unable to do so. With respect to banking, I recommend that you become an agent on their account. That allows you to write checks or to make deposits when they are unable to do so themselves or perhaps are not able to drive anymore to do those sort of things especially now in the days where we can make deposits online.
The last thing that I recommend is encourage your parents to have a funeral and burial plan. I know none of us likes to think about our death but we know that it is inevitable. If they go to your local funeral home and make those plans, that takes so many things off your plate upon their death when they’re able to select many things that will occur after their death and pay for them at today’s prices. A funeral and burial plan can be very important for your parents but it can also ease your burdens in times of grief after their death.
My Child Has Turned 18, What Documents Do They Need In Place In Case Of A Medical Emergency?
Children tend to turn 18 sometime in their senior year of high school or the summer after their senior year in high school but certainly before they enter college, they have turned 18. While they will always be your children, in the eyes of the law once they turn 18, they are considered an adult and they need a power of attorney or a medical power of attorney to make decisions in the event that they are involved in an accident or something while they’re away at school and unable to do so. A good friend of mine, when their son was in college and was involved in an accident, they would notify of the accident but the hospital was unable to share any information with them because their child was an adult in college and did not have a medical power of attorney. So they had to drive through the night to college unaware of their own son’s wellbeing. Imagine how difficult that could be on a parent. So I recommend to every parent when your children turns 18 to make sure they have a medical power of attorney, a statutory durable power of attorney or a financial power of attorney, a medical directive and a HIPAA authorization. That allows you as their parents to make financial or medical decisions in the event that your children are unable to do so. They’ll always be your children but at 18, in the eyes of the law, they’re an adult.
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