U.S. News & World Report’s recent article, “4 Documents You Need in Retirement” explains that once you retire, or perhaps even before you retire, you should think about documents you’ll need in your senior years.
The following four documents may not be the only ones you need, but they’re the basic ones every retired person should prepare—for your sake and your family’s.
A will. This fundamental legal document provides your directions about how the property you own should be distributed after your death. It also names the person(s) who will manage your estate after you die, until your property is completely distributed. Hire a qualified estate planning attorney to be certain your will complies with federal and state laws. Working with a lawyer is vital, if you suspect someone might contest your will.
Power of Attorney. You can authorize a power of attorney to a friend or relative, so they can make financial decisions for you, in the event you can't do it yourself (either on a temporary or permanent basis).
Health Care Directive. This document designates a person who in effect serves as a power of attorney for your health care, and it could be the same person as on your financial power of attorney. The document authorizes your agent to withhold or withdraw medical care or medically supplied nutrition, to admit or discharge you from a medical facility, and to hire or fire anyone who’s taking care of you. It can also provide guidance to your agent, if you have an irreversible medical condition. You can specify what type of care and treatment you want. You can add in information about whether and how to prolong life, provide palliative care only and if you want to donate your organs.
Personal Data Sheet. While this isn’t an official document, it’s a very valuable record to have around to help your family or anyone else handling your estate. This document should list any significant property you own and what to do with it. List any bank or investment accounts, like IRA and 401(k) accounts. Write down the name of the financial institution, the account numbers and the approximate balances.
It’s not a bad idea to share this information with your family, long before they need it.
Reference: U.S. News & World Report (October 11, 2018) “4 Documents You Need in Retirement”