Ep.10- Your Estate Plan in 7-Steps with Sandy Derby

Wealthy HOMES

“Estate Planning” is often associated with people who are older in age and people who have significant wealth. But, in reality it should be something on everyone’s radar, especially young families. Sandy Derby, from Preferred Financial Group, joins us in this episode to talk about estate planning and the order you should take when it comes to your estate plan. Where do you start? Start with these 7-Steps!

1. Establish a medical ID
   1. Every smartphone has the ability to link a medical contact in your phone. This could be your spouse or any loved ones that you want to be notified if something happened to you.
   2. You can also add medical info like: Diabetic, organ donor, blood type, or any medications you’re on.
2. Write down your password(s)
   1. Physically write down your password to your phone and/or your computer. Place this in your safety deposit box, safe, or fireproof box at home.
   2. This allows your spouse, parents, or kids access to your immediate bills and documents
3. Name your beneficiaries
   1. Retirement accounts (IRA’s, 401k, etc), bank accounts, life insurance, your home, and any accounts with a beneficiary option should have someone listed.
      1. Primary: Your first choice of who you would want the asset to go to.
      2. Contingent: Your second choice if your primary predeceases you. Often kids, parents,future guardians of your kids, or a trust.
      3. These all avoid probate!
4. Medical documents
   1. HIPAA medical form
      1. Allows someone to discuss your medical situation with them.
   2. Medical Power of Attorney
      1. Gives someone authority to help in your medical treatment
   3. Medical Directive
      1. Gives guidance on the type of medical care you want. Mainly when to pull the plug…
      2. The person who is your medical power of attorney doesn’t have to the same person named in your medical directive
5. Durable Power of Attorney
   1. Allows someone to act as yourself when it comes to your finances
      1. This is the most powerful financial document!
   2. Springing Power of Attorney
      1. Allows someone to act on your behalf once a “trigger” has happened.
6. Will
   1. A document to the probate court stating who gets your valuable possessions that aren’t named with a beneficiary. Think about furniture, animals, firearms, collectibles, and who you want as a guardian to raise your children.
7. Trust
   1. A document used to bypass probate court that is “funded” by your financial assets. You can specify who gets certain assets, when they will receive them, and how they will receive the assets.

If something happened to you today, would your family be okay? If not, we need to talk. We can develop a plan and coordinate with an estate planning attorney if it makes sense for your situation.

Michigan Power of Attorney Forms:

https://powerofattorney.com/michigan/

Medical Directive:

https://www.caringinfo.org/planning/advance-directives/by-state/michigan/

Michigan HIPPA Release Form:

https://www.michigan.gov/mdhhs/doing-business/providers/hipaa/authorization-to-disclose-protected-health-information

Have questions? Give us a call at 269-978-6000.