How to Prepare for a Family Emergency: Estate Planning Tools
If there is an emergency or you are separated from your family unexpectedly, there are things you can do NOW to protect your property and money, and provide support to your family. This is called estate planning.
Here are some estate planning tools
Help with Money and Property
Financial Power of Attorney
This form is a power of attorney just for finances and property. It lets you appoint someone you trust to handle some or all your financial matters. You decide which ones. For example, all bank accounts, or just some, or banking, but not taxes. Or pay your bills. You can also say how long the person will have control, and when their control would start.
TIP: You must sign this form in front of a notary.
Will: A legal document that lets you say who gets your property after you die. If you own property in another country, you may also need a will for that country.
Revocable Living Trust: Trusts let you manage your money and property while you’re alive. Trusts also let you say what happens to your assets after you die (without having to go to probate court).
Tip: Know the Tax Rules: U.S. and international taxes can affect your plan, especially if you have property in another country or if your spouse is not a U.S. citizen.
Beneficiary Designations: All banks and life insurance companies let you fill out a beneficiary designation form so you can say who will inherit the money when you die.
Small business owners should take additional steps to protect their business, like updating their business governance documents and drafting a power of attorney. Talk to a lawyer or visit our Succession Planning Guide for Small Business Owners, available here.
Letter of Instruction: This is NOT a legal document, but an informal tool that you can use to list your important personal information, such as bank account numbers, usernames and passwords, summary of bills, and other information that would be needed to support the household and your family in an emergency.
Tip: Make sure a trusted loved one knows where to find this list.
Help with Healthcare Decisions
Durable Power of Attorney for Health Care (Advance Health Care Directive)
This form is a power of attorney just for health care. It lets you give someone you trust access to your private medical information and the power to make healthcare decisions on your behalf.
For Parents & Guardians of Children under 18
Guardianship Nomination Form: This form lets you tell the court who you would want to act as your child/ren’s legal guardian.
Caregiver’s Authorization Affidavit: This form is completed and signed by a caregiver so they can enroll your children in school and authorize health care if your children need it.
For caregivers of older/dependent adults
Letter of Intent: If you are a caregiver, you can prepare a Letter of Intent to share important details on how to care for a loved one. This is NOT a legal document but an informal tool that can help a new caregiver take over, if needed.
TIPS:
Talk to a Lawyer: Work with a lawyer who specializes in estate planning and immigration issues. They can help make sure everything is set up correctly for your situation.
Check and update your papers and your emergency plan regularly, especially when there are big changes in your life. Keep all your legal papers and personal documents in a binder or in a folder on your computer, including:
• ID cards, passports, Green card, visa, or other immigration papers
• Birth certificates and marriage certificate
• Financial records of your debts and assets
• School records
Make sure your loved ones and/or lawyer have copies or know where it is.
This is legal information, not legal advice.
