Beyond the fog lies clarity
Originally published in Wood River Weekly
The summer sun is streaming, and while uncertainty still looms, there are reasons for optimism that clarity lies beyond the fog that has hovered since early this year.
I was recently asked a question that caused a lump to well up in my throat. “What will happen when I die?” The thoughtful question was posed by someone who wanted to know about the future experience of those she loves and has entrusted with managing the administration of her estate she intends to leave to their stewardship. She wanted to know if there were any steps she could take to make their future responsibilities a little easier, a little more lucid. What she was seeking was a way possible to remove the fog of confusion. She wanted clarity.
Should we want to emerge from the fog of financial and estate planning, where do we begin?
Let’s start here. Decide whether you're most comfortable organizing your financial cupboards electronically or in hardcopy form. There exist many opportunities to use secure online personal finance websites, archives, or vaults. If old school is more your style, purchase or repurpose a large three-ring binder.
Next. It’s recommended that taxpayers retain copies of returns and supporting documents for seven years. Whether you scan, electronically archive and then shred sensitive documents, or maintain a physical file cabinet – now may be the time to discard records aged eight years and older and put the prior seven years’ documents in order.
Real property. If you own real estate and other assets not represented in your monthly or quarterly investment statements, account for them with available annual valuations and other pertinent details.
Safeguards. Insurance policies allow us to protect our assets, our income, our families, and businesses. Whether directly or through an employer, do you hold life insurance, health, disability, long-term care, homeowners, auto, business, or personal liability coverage? If so, let's establish a go-to location where all relevant information is summarized – policy type, account number, agent and insurer contact information, and other details helpful in an emergency so they can be accessed by you or by a trusted contact.
State of your estate. While estate planning does allow you to preplan the allocation of your life's accumulations, it encompasses more than just the distribution of your assets.
Should you be unable to make decisions due to incapacitation, who would act on your behalf? If you have minor children, what will the future hold for them in your absence?
Do you have a will, a trust, separately designated beneficiaries on insurance policies or retirement accounts? Do you hold assets in common; with right of survivorship; or in community property titling? Do you employ transfer-on-death designations?
Have you updated your documents since a previously selected beneficiary has died, or have you divorced with a former spouse still in line to inherit your holdings? Assess what you have in place and update your documents as needed.
Advocates and representatives. Lastly, if you do have an advocate you've legally authorized with power of attorney and or an executor appointed to assume the responsibility of settling your estate, have you communicated with them how you've organized your financial household? Do they know how and where to access your information, so when necessary, they're able to act in your and your family’s best interests?
At least once a year, it's a healthy habit to bring some clarity to the haze that may have settled in around our financial and estate matters.
DISCLOSURE: Beyond the Fog Lies Clarity. Suzanne Hazlett, MBA, CIMA®, CFP®, is a Certified Investment Management Analyst® and CERTIFIED FINANCIAL PLANNERTM. HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. 675 Sun Valley Road Ketchum, Idaho, 208.726.0605. HazlettWealthManagement.com
