Tuesday, May 31st, 2005

Behind the Headlines with Compass Planning

This Issue: Essential Safeguards
By Lauren Gadkowski, CFP

We have all learned that a day at the beach should include liberally applied sun-block lotion. And we have accepted the reality that unlocked doors and unzipped pocketbooks are unwise…yet we sometimes overlook the need for essential safeguards to protect ourselves and our wealth.

What can we learn from the Terry Schiavo case?
What are some steps to take now to protect yourself and your loved ones?

Terry Schiavo and Health Care Proxies
Regardless of your perspective on the heart-wrenching Terry Schiavo case that held headlines for months, we all came through it with a raised awareness of the need to have a legal document that appoints someone to make medical decisions for us in the event that we are unable to do so.

Identify What You Have In Place
In Massachusetts, this document is called a Health Care Proxy and there are several versions of a Health Care Proxy, some of which are more complex than others. Some states have other documents with different names that serve the same purpose. The most common term is a Living Will, which also allows you to clarify medical directives about the level of care you would like to receive in a variety of medical scenarios.

Review Your Health Care Proxy
Review your Health Care Proxy to be certain that in addition to appointing a person to make medical decisions for you, it outlines the measures you want to be taken in the event of your incapacitation. Don't make your designee have to guess about your wishes. That individual will likely be under significant emotional stress and these are exceedingly difficult decisions.

Power of Attorney
In addition to a Health Care Proxy, we all need to have a Power of Attorney document that appoints another person to make financial decisions on our behalf if we are unable to do so. The individual you select does not have to be the same person designated on your Health Care Proxy.

The Power of Attorney document and your Health Care Proxy are essential safeguards for protecting you and your wealth.

Organize Your Records
Create an organized system to ensure that your medical wishes and your financial goals are carried out if you are unable to make those decisions. Talk with your designees and show them where you store these important documents.

* Make certain that the person named on your Power of Attorney document agrees to hold that role, understands what it entails, knows where important financial documents are kept, and has a list of where your assets are held.

* Make certain that the person named on your Health Care Proxy or Living Will agrees to hold that role, understands what it entails, and understands your wishes as stated on your Health Care Proxy document.

Estate Planning
Estate planning is protecting yourself and your wealth. It can be a tough subject to think about because of the emotions associated with the thought of dying. Think of it as life planning, rather than death planning. The documents you create will help those you leave behind to carry out your wishes. At a difficult time you will have provided your family with clarity, security and a tremendous amount of comfort.

For more information on estate planning and how it fits into your financial plan, please contact us for an appointment.
Call toll free at (888)-320-9993.

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