Death | Senior Money Memos

A Power of Attorney specifies who will manage your property during your lifetime, in case you are unable to do so yourself. As Daniel O. Tully, Eldercare attorney, points out you should start the conversation soon.

No one wants to face the fact that our loved ones will not be with us forever. Facing our own mortality is frightening as well. Don’t be afraid to start the conversation. Whether you are a parent talking to your children, a husband talking to a wife or an adult child talking to an aging parent, bringing up the topic of death and disability can be difficult, but it is an important conversation to have.

Although none of us wants to contemplate a time when we or a loved one might become disabled or die, it is important to be prepared. There are many steps families can take in advance of death or disability to avoid future conflicts or uncertainties.

You need to be covering:

a power of attorney in case of disability
a health care power of attorney giving someone else the authority to communicate your wishes about medical treatment, if you are unable to do so
estate planning
a will
Funeral arrangements

You should also list information on the location of assets, such as bank accounts, property and stocks and bonds; the identity of important professionals who might have information about your estate; and the location of important records, such as loan, insurance and tax documents. The list can also contain things you want done immediately after you die, such as calling relatives or notifying employers.

It is important that Families must communicate and respect the designated Power of Attorney. A failure to do so can cause major problems. A family member who is unaware of an existing Power of Attorney may grant rights to others that are counter to what has been authorized in the POA.

When relatives are in declining health, a POA should be registered with banks, investment firms, doctors, credit card companies and indeed any other company or institution they may have dealings with. Even their drugstore should have a copy. Only in this way can the individuals rights and wishes be preserved and honored.

Technorati Tags: Death, Estate planning, Power of attorney, will

It is often said that death and taxes are inevitable and cannot be avoided. It appears that bank fees can be added to the list. At least that would seem to be the case in the UK where Barclays is accused over ‘obscene’ fees for customers’ wills.

An Independent on Sunday inquiry has revealed some major high street banks, solicitors and will-writing firms advise clients to appoint them as executors on customers’ wills and levy fees of up to 4.5 per cent on the estate on death. On an estate worth £500,000, that equates to £22,500 – about four times as much as the fees that the best-buy probate firms charge.

An executor’s role is to administer the deceased’s assets and ensure they are correctly distributed between beneficiaries and the taxman.

Barclays has been criticised for using aggressive tactics to persuade customers to appoint it as executor. Barclays defended its actions, saying that it acted as executor only in a minority of cases and that its policy is to step down when asked to do so by a beneficiary.

Consumers are warned that some will-writing companies and banks insist on writing themselves in as a joint or sole executor in the first draft in the hope of getting the fees for doing the estate work.

A codicil can be added to an existing will to remove unwanted executors. However, it applies only if the person drawing up the will is still alive. As usual, it is buyer beware and you should read very carefully all the small print before signing that draft will. It may have sharp teeth.

Technorati Tags: Barclays, Death, Executor, will

Senior Money Memos

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Tag Archives: Death

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