Skip to Content

Documents
August 2020

Aug 31, 2020 | Business Owners | Families

As Certified Financial Planners, we are constantly asking “what if” questions to determine whether our clients’ plans can weather various unexpected scenarios. In the face of the current pandemic, many of us, whether CFPs or not, are asking some profound “what if” questions, including “what if I were to fall ill tomorrow? And worse, what if I didn’t recover?”
When you find yourself asking these questions, also ask whether your estate plan reflects your current wishes. The relevant documents are:
• Durable power of attorney:
o Names who you would like to manage your finances and property (including digital assets, such as email and social media accounts) on your behalf while you are still alive but unable to manage your own affairs, perhaps due to incapacity, perhaps because you are in the hospital or because you are out of the country.
o In the event of incapacity, without a durable power of attorney in place (even if you are married), the probate court may need to appoint a guardian to act on your behalf, which can be a costly, emotionally draining and time consuming process, particularly during a pandemic.
• Advance Health Care Directive
o Names who you would like to make health-care decisions on your behalf if you are incompetent or incapacitated.
o If you are over the age of 18 and don’t have an advance health care directive, the probate court may need to appoint a guardian to make these decisions on your behalf.
• Last will and testament:
o Determines how assets held in your individual name without a beneficiary designation will be distributed when you die, who will serve as executor of your estate, and, if you have minor children, who will be their guardian. If you don’t have a will, the probate court will decide on the above according to state law.
• Living trust:
o A contract that creates an “entity” to hold your assets that can avoid the need for probating your estate (as long as you “fund” the trust with your assets). If revocable, you can change the terms of the trust at any time while you are alive.
It is also a good idea to review your beneficiary designations to determine whether they reflect your current wishes.

 

IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Pathway Financial Advisors, LLC-“Pathway”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Pathway.  Please remember that if you are a Pathway client, it remains your responsibility to advise Pathway, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Pathway is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Pathway’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Please Note: Pathway does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Pathway’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.