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The Nine Steps to Financial Freedom (4a)

4a.     Be responsible to those we love people first then money

No one expects to die tomorrow.  But it happens. Don’t force our loved ones to deal with all the matters we could have taken care of while we were alive and healthy.  We can do this now:

Wills

  • A will is simply a piece of paper stating who we want to get what when we die. Wills are public documents.
  • After we die and our will have been probated (probate fees are based on the fair market value of the house at the time of our death — often in the tens of thousands), anyone can go down to the courthouse and look up all the assets we owned and what they’re worth.

Trusts

  • With trusts, only the people entitled to the assets will know what they are and are worth.
  • The court is not involved in the transfer of our estate.
  • A trust will allow us to transfer legal title of our assets into the care of a trustee and to name a successor trustee and beneficiaries.
  • Assets quickly become the property of our beneficiaries upon our death.
  • Most important, they do not pass through probate.

Paperwork is involved so the sooner we set one up, the easier it will be to accumulate assets in the name of the trust.

Durable Power of Attorney

Most health insurance companies pay up to $1 million for an illness. When health insurance runs out, there are three options:

  • Prolong our life as long as possible, regardless of cost or chance of recovery
  • Provide life-sustaining treatment unless we are in a vegetative state (determined by physicians in their best judgments)
  • Refuse our life to be unnaturally prolonged (pull the plug)

Be sure to specify an agent i.e., the person who will make the final decision to take you off life support — if the decision has to be made.  Choose someone who loves you, yet who is strong enough to do what you would want him or her to do.

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November 30, 2008 - Posted by | Book Review, Mind, Money, People, Spirit | , , , ,

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