TALLAHASSEE, FL- Planning for the future can seem overwhleming, but officials say having a plan for what happens to you, including home and assets is big help to your family.
Stacy Bush, owner of Bush Wealth said this is a hot topic lately because of all the issues around Prince's estate.
Here's what you need to know:
1. Beneficiary forms
this paperwork indicates who gets the assets in your 401(k)s, iras, life insurance policies and other financial accounts upon your death. These designations actually trump any directives stated in a last will and testament, so it's important to keep them up to date.
2. Pod and tod designation forms
a payable on death (pod) form typically designates who should receive the money in your checking or savings accounts upon your death. A transfer on death (tod) form is similar to a pod form but is typically used for brokerage accounts and a tod deed indicates who takes over the deed to your home after you die.
3. Durable power of attorney forms
a durable power of attorney names someone to make health care or financial decisions for you in the event you become too sick or incapacitated to make them for yourself.
4. Living will
sometimes called an advance health care directive, this document goes into detail about how you want your doctors to treat you should you become unable to communicate those wishes (for example, whether to leave you on life support).
5. Last will and testament
this document, which is often confused with a living will, outlines how you want your assets divided as well as who should become guardian of any of your children under the age of 18. Just note that creating a will doesn't mean that your family will avoid court proceedings: a will still has to go through probate, but it guides the court in helping to fulfill your wishes
6. A living trust
similar to a will, a living trust details how you want your property and funds distributed and who will take care of your minor children. This document also appoints a trustee to carry out specific wishes for your assets. Unlike a will, any assets you hold in a trust do not have to go through probate—and a trust can be used to help manage your assets and property while you're still alive.
