Where There's a Will...

So, if you recall, we met with a financial planner a couple of months ago. One of the tasks he assigned us with was to get in to see a lawyer and finally get a will and whatnot done. Well, PJ and I finally did that today.

We met with a lawyer that the financial planner referred us to. He was a knowledgeable guy who's been in the business a long time. He had a lot of information and practical advice for us. Nice guy too.

We were asked to come with a brief financial summary and some ideas on who we wanted to appoint as trustees, executor, etc.

The lawyer asked us a series of questions and then we discussed our options. Our situation is more unique than the standard family since we're blended and PJ has a few stipulations already set up in his property settlement agreement (what you get when you get separated in Va).

The drafted documents will be mailed to us in the next couple of weeks and then we'll review and approve/edit them. Once that's complete, we'll head back to his office to sign everything and then we'll have to update some of our documents, like our life insurance beneficiaries. I'll be glad when we can finally cross this important step off our list. I feel like a huge burden will be lifted.

Here's some information for getting your own will done (and in general, this can be done with software at home, but our situation is a tad bit more complicated):

1. An executor is the one assigned to handle all the administrative tasks after a death. This is often a spouse, however, if you both die, someone else must be named. If you don't name one, the courts will. This should be someone who is organized and who you trust to get all your affairs in order (funeral, general paperwork, taxes, bills, etc.). Make sure your executor can find all of your files and whatnot. If you pay your bills online, make sure they are left some directions with how to access those accounts!


2. Once the executor is done with his/her job of executing the will(s), the remaining funds of the estate (if there are any) are then distributed. If a trust was set up, then the assests are turned over to the trust and trustee. A trustee should be designated to help distribute the funds of the trust to your survivors (in our case, our kids). The trustee should be someone who makes similar financial decisions. For instance, if your kid goes to the trustee to ask for the money to buy a car, will the trustee make the same decision as you would?


3. In Virginia, you are not required to have an executor that's a resident of the state (misinformation I had received originally). The executor will have to appear in court wherever you resided sometime after your death, so keep that in mind.


4. Wills are valid even if you move states, etc. The lawyer advised that you update your will at least every 10 years, but also after any major life changes. Generally, you can always call the lawyer to ask if a life change requires a will update. They'll answer that question free of charge usually. :)

In addition to the will, we're also having a power of attorney drawn up. This basically states that if either of us is unable to do something legal/financial, the other can do it. So, if I'm in a coma, PJ can sell my car (since he's not on the title, this would otherwise be an issue for him). These documents are particularly important for elderly parents to complete naming one of their adult children before they have a stroke or other debilitating problem that renders them unable to make decisions. The lawyer said that he received calls almost DAILY from family members needing a power of attorney for a sickened parent and the parent is not truly competent. It requires them to go to court and do a million things. In the meantime, the mortgage is not getting paid because no one can access the parent's checking account.

We're also having a Health Care Power of Attorney done. This gives the other spouse the power to make medical decision in the event the injured spouse can't. Ours also list various other family members as alternatives (in the event one of us has passed already). These are not only for life and death situations, but those are included of course.

Finally, we are also having a Living Will done. Neither one of us is interested in being kept on life support. So, this dictates that making the decision easier for our surviving family members.

No one likes to think about the inevitability of death, however, if you don't want the state to decide what to do with your estate, even if you don't have kids, you should look at getting this taken care of. If you leave behind family members (kids, siblings, parents, etc.), you will make their lives infinitely easier if these things are discussed in advance and then dictated legally.