June 2006
| Preplan your estate You need a will to transfer what you own to the people or charities that matter to you. Without a will, your state determines which family members get what. Not all property need be included in your will. Life insurance, retirement accounts, bank accounts, and trusts require you to name beneficiaries. That designation overrides any preference you state in your will; make sure it's up-to-date. Similarly, if you and another person own an asset such as a house, the title determines what happens to it after you die, not your will. The will should name a guardian to raise your children if no other parent is available. A court must appoint the guardian but will generally go along with a parent's choice. If the guardian is good with kids but can't manage money, your will can create a trust fund for your kids and designate another person to oversee it. Consider drawing up a letter of instruction, which details other information you want to pass on, such as funeral arrangements, and a side letter, which states who should get personal property not listed in your will. You should also execute a living will describing the medical care you want (and don't want) should you become incapacitated. A health-care power of attorney allows someone to decide on your medical care under circumstances not described in your living will. A durable power of attorney gives another person the authority to manage your money when you can't do so. If you need legal assistance and cannot afford it or do not know where to find it, contact the Katrina Legal aid clearinghouse of information at www.katrinalegalaid.org. |
