Taking over someone’s financial affairs is often overwhelming, particularly for someone who is not financially savvy. Empowering the person who would take over for you is one of the greatest gifts you can give them and below are some way to do just that.
1. Communicate to your “sweetheart” what you are asking of them to be sure they are comfortable with the responsibility.
2. Meet with an attorney to execute the necessary documents (i.e. Will, Power of Attorney, Trust, etc).
3. Provide your “sweetheart” copies of these documents.
4. Furnish them with an inventory of your finances. This might include checking, savings, and investment accounts, mortgages, car loans, and credit cards and can be provided on a single sheet of paper or via a shared online document such as the free Google Documents.
5. Consider placing them on your safe deposit box.
6. Provide them contact information for your team of professionals, which might include a tax accountant, estate planning attorney, insurance agent and financial advisor.
7. Going forward, include them in your financial decisions. This will allow your “sweetheart” to stay up to speed on changes you make and learn your decision process. It’s an education!
All but the last item, which is ongoing, can be done in just a few short days, and you will have made your “sweetheart’s” life much easier at a time when it is needed most. The added bonus of this gift is that the process can prove very liberating for you as well.
Contributed by Kevin Mahoney, CFP®, Integris Wealth Management
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