Step Two
For some, Step Two is a breeze. Others will struggle and perhaps delay moving forward indefinitely. This step is rarely discussed among family, and when lawyers are hired to draft a plan, they defer to their clients and offer no advice. That is unfortunate because attorneys are in a unique position to witness what has worked and what has failed when other clients have chosen one path or another.
The Four Jobs
We will not spend time now on the legal and real-life reasons behind the following requirements. Later in this step, you will find a resource that will dive deeper into the subject matter, to include the origins, purposes, and ramifications of the following legal truths.
You must have a health care power-of-attorney for your health care plan, a financial power-of-attorney for bil-paying, managing financial assets, and doing anything, really, in the modern world. If your money model is Asset Protection, you need a limited power-of-attorney. A power-of-attorney appoints a person to act as your "agent."
When you pass, if your money model is asset protection, you must appoint an Executor, also called a Personal Representative, other than your spouse if you are married in some cases. You will also need to appoint a trustee to set up, fund, and manage the trusts you create.
These are the four jobs in planning:
- Agent for health care decisions
- Agent for financial decisions
- Executor
- Trustee
I emphasize the word "jobs" because the same person could fill all of those job and likely will . However, your appointed agent for health care can quit. So, you need a back up, preferably two.
It is your plan, but banks detest co-signers on an account. Usually, joint decision-makers who are also siblings during a time of stress over a parent's health and subsequent death is often a defective decision-making model. Pick one person to fill each or all of the above-listed jobs. Then think of two more who will serve consecutively if any acting agent, executor, or trustee resign.
Resources
This Roadmap is an extremely watered-down version of the Asset Protection Roadmap Course. The Course contains lessons with video, audio, written, and multi-media content to discuss these issues further. For example, is it preferable to appoint a professional trustee. What exactly is the job description of a trustee compared to an executor. If you are stuck, strongly consider enrolling in that course.
Good News!
You have some momentum. Most never get this far. Likely, you put it off for many years, too. Do not get hung up on Step Two, any step for that matter. You will have time, even after you receive your documents, to change your mind. That is, the Drafting App sends you your legal documents instantly in Word format and you can use the app for sixty days. I many cases, it is best to make a tentative appointment of a family member and notify them by sending them a copy of the drafts. They should be notified as soon as possible, and preferably before you finalize your plan and sign the documents.
