New Year 2008, New Challenge—And Members Are the Experts

by Susan Tiffany, CCUFC

Home & Family Finance® Resource Center reader Kim, from Arlington, Texas, and a member of American Airlines Federal Credit Union, sent us this reminder:

Most people think about writing a will to protect their financial assets when they pass away but they do not think about getting a power of attorney (POA) and medical power of attorney to help someone take care of their finances when/if they become incapacitated. No one can pay their bills for them without the POA and their credit can be ruined. Another group who needs these items is the children of the baby boomer generation, because the responsibility to take care of their parents will be their job. You do not want to go through the guardianship process if you can avoid it.

Something to think about!

Kim makes a valuable point, one we're happy to revisit.

Three key documents

You should create--or update--three documents that are vital if you become temporarily or permanently unable to speak for yourself.

• Living will--spells out your wishes about the use of life-sustaining procedures. This is a separate legal document, not part of your will. In a living will, you state your choices for life-sustaining medical treatment in case you become incapable of expressing those preferences.
  Your family members could be deeply divided over what they think you want.
• Durable power of attorney for finances--allows you to designate someone you trust to manage your financial affairs. This authorizes someone to act on your behalf in financial matters, such as writing checks, selling real estate, and so on. A durable-power-of-attorney designation ends at your death.
• Durable power of attorney for health care--allows you to appoint someone to make decisions about your medical treatment. In this arrangement, you authorize someone to make health-care decisions for you if you become unable to make them yourself.

You might also hear the term advance directive. Advance directive is a general term for the legal documents that give direction to your family and physicians about your future medical care. Without these documents a court may have to intervene in your personal affairs if you become incapacitated. Your doctor may have to provide medical treatment within the limits of the law, which may not be what you want. Your family members could be deeply divided over what they think you would want.

You typically can get forms from physicians, hospitals, attorneys, and several Web sites. Consumers Union recommends Five Wishes, a form from Aging With Dignity, a national nonprofit group in Tallahassee, Fla. ($5), as well as the American Bar Association's free workbook, "Tool Kit for Health Care Advance Planning."

2008 Financial Fitness Challenge

As we reported last month, we're taking a new tack on the 2008 Financial Fitness Challenge. Now it's your turn to share your best ideas for money management with other credit union members—winning recognition and possibly money.

Here's how it works: Submit your ideas and become eligible for monthly prizes of $50 Visa gift cards—and a grand prize at the end of the year of $1,000.

Your idea can be anything that works for you that you think could be helpful to others. We will share those ideas—and give you recognition for them—all through 2008.

You'll become eligible for monthly prizes of $50 Visa gift cards—and a grand prize of $1,000 for a "reader favorite" chosen by readers at the end of the year.

ST
Susan Tiffany, CCUFC
askem@cuna.coop

Published January 1, 2008

Printed Friday, January 9, 2009

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