Many people believe that a will and spoken promises are sufficient preparations for their passing, but there are a few other items that you will wish you had if you knew about them, according to Lauren Moone, an Executive Vice President at Mirador Capital Partners. She has been providing investment advice for individuals, families, and institutions for over 13 years.
1. Power of Attorney
POA is a crucial part of any estate plan. With it, someone you trust will have complete control of your finances. Not comfortable with that? Consider a Limited Power of Attorney which you can restrict to, for example, your checking account.
2. Advance Healthcare Directive
Think of an AHD as a Power of Attorney for your health. If you are suddenly unable to care for yourself, for example, if you become terminally ill or get in a bad accident, you’ll be glad you have this document.
3. Living Trust
Having a will is great, however, wills are subject to a nasty process called probate. With a Living Trust, you can avoid probate altogether. Trusts can be established in short order and are recommended if you have young children or own a home.
4. Talk to Your Parent(s)
Having a conversation with your parents about their estate plan is crucial. Most people are uncomfortable talking about their parents’ estate but not knowing what will happen is often the cause of significant strain on families. Have this conversation sooner than later to save yourself from problems that occur when they become ill or pass.
Lauren Moone specializes in complex financial planning and customized portfolio construction. She advises clients on vital financial matters including pre-IPO planning, employer stock option optimization, wealth transfer strategies, and concentrated equity strategies. Lauren is a native of Seattle, Washington and moved to California to attend Claremont McKenna College, where she graduated with a degree in Economics and Accounting. Lauren is a CFA® charterholder, a Certified Financial Planner (CFP®) certificant and a Certified Private Wealth Advisor(CPWA®) professional. Lauren currently resides in Pleasanton, California with her husband and three children.