The New Year can give us a fresh start to focus on matters of importance in our lives. In addition to our physical health, our legal and financial health should be examined, too.
Here are some simple and common-sense steps that can pay rich dividends and will help you with the best legal problem ever: the one you never have.
Are your basic estate-planning documents in place? If your will is more than 10 years old, it probably could use a tune-up, or more. If you do not have a durable power of attorney (sometimes called a general or financial power of attorney) you should have one. If you do not, there is no one who will be in charge of your financial affairs should you not be able to handle them yourself. If it is out of date, it could probably be improved.
By the way, do you know where the original of your will and power of attorney are? A copy is not going to do you much good.
If your living will and health-care power of attorney were done on the kind of documents used before a change in the law in late 2007, you should consider doing another living will and health-care power of attorney with newer, and much improved, documents.
Among other things, the new law clarifies what happens if your living will says for your doctors to do one thing and your health-care agent says to do another. It is a significant improvement.
Hospice and BestHealth 55, an organization associated with Baptist Medical Center, regularly conduct free clinics on these important health-care documents, and they will even assist you in executing them. Or, you can get your lawyer to prepare them for you. But with the former, as my wise father would say, the price is right: free.
If you are in your mid- to late 50s or older, you should consider purchasing long-term-care insurance. Even if you have some health problems, you may be able to find coverage.
Many people spend their last years in a long-term-care facility. Whether it is an assisted living, Alzheimer's or nursing-home facility, the cost of these institutions can run through one's entire life savings. Medicaid provides a safety net for the expenses related to some of these facilities, but only after you have run through virtually everything you have worked for all of your life. Long-term-care insurance may be the wisest financial decision you will ever make. Call your insurance agent and review your options.
Life-insurance policies, retirement accounts and other accounts that have designated beneficiaries should be reviewed in the New Year. Do you have the right beneficiaries designated? A few quick telephone calls can make sure. If you set them up years ago, or you have gotten a divorce, you may be surprised who will get the money.
What is your greatest potential legal exposure, other than unfinanced long-term-care costs? Accidents caused while you or your family members are driving your vehicle or accidents on property you own for which you are liable.
Determine whether you can afford to expand your liability coverage, including a possible umbrella policy, which provides extended, second-tier coverage.
To pay for any additional premiums, review your auxiliary coverage, such as comprehensive and collision coverage, and the amount of your deductibles, particularly for older vehicles. You may pick up some significant savings, which will help to pay for coverage where you need it most.
Remember: An informed choice is a smart choice.
Mike Wells is an attorney with Wells Jenkins Lucas & Jenkins PLLC in Winston-Salem.
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