Questions First Responders Must Consider to Best Protect Their Loved Ones
Thank you for all that you do for us. We understand that being the first one on the scene can come with many different risks. We are dedicated to protecting you and your loved ones from the different types of emergencies that may pop up during your life. The following are some important questions for you to consider that can help you prevent your own family emergency.
What Happens if I Am Injured or Unable to Make My Own Decisions?
Being unable to work or make decisions for yourself can seem like an unimaginable scenario. You spend your time coming to other people’s rescue, so it may be difficult for you to imagine a time when you might need help or rescue. However, such things happen to people every day. To best protect yourself and your loved ones there are a few things you should consider.
Financial Power of Attorney
With a financial power of attorney, you choose a trusted person (an agent) to handle your financial matters (sign checks, open a bank account, etc.) when you cannot. You can specify what the agent can do and when the agent can act based on your state’s law. Without this document, a court will have to appoint someone if you need help handling financial matters. Depending on your situation, the person the court selects may not be the one you would have chosen.
Revocable Living Trust
If you are looking for maximum protection for your loved ones with minimum court involvement, you might consider a revocable living trust. A revocable living trust allows you to manage and access your funds throughout your lifetime, appoints someone to make financial decisions for you if you become incapacitated, names someone to manage your assets after passing and states who should inherit your assets and how. Parents with minor children especially like using revocable living trusts as it enables them to put “strings” on a beneficiary’s inheritance, ensuring that the funds are used appropriately. You can leave assets to beneficiaries in a creditor protected structure that allows the funds to be used for the beneficiary but not taken by the beneficiary’s creditors. A properly funded revocable living trust allows you and your loved ones to avoid the probate process.
Health Care Power of Attorney
A health care power of attorney allows you to appoint a person you trust as your medical decision maker to make healthcare decisions on your behalf if you cannot do so. Without creating a health care power of attorney to designate someone, the court may have to name someone to make such decisions for you. As with your financial matters, the person selected by the court may or may not be the person you would have entrusted with making medical decisions on your behalf.
Living Will
A living will allows you to convey your wishes regarding end-of-life situations. This document can make carrying out your wishes easier and can reduce tensions among your loved ones brought on by uncertainty.
HIPAA Authorization
A Health Insurance Portability and Accountability Act (HIPAA) form allows you to grant specific individuals access to your medical information (e.g., to get a status update on your condition or receive test results) without giving those individuals the authority to make decisions on your behalf. Although these individuals cannot make any decisions, sometimes providing loved ones with information can help prevent conflict between your chosen medical decision maker and the rest of your loved ones because no one is left in the dark.
How Can I Provide for My Loved Ones after I Have Passed Away?
No one wants to think about what will happen after they pass, but if you do not think about it or plan for it, your loved ones could end up in a difficult situation.
Life insurance is one of the first things most people consider when planning for the unknown. Do you have enough life insurance to support and provide for those you care about at your passing? If you are unsure, it is a good idea to consult with your insurance agent and financial advisor to make sure your insurance policy sufficiently covers your loved ones’ support needs.
In addition to making sure that you have enough life insurance, you should make sure that your beneficiary designation form is properly completed. This applies to not only life insurance, but retirement account beneficiaries are well. Often, people simply name somebody when asked to designate primary and backup (contingent) beneficiaries. Although it’s important to complete the form, it’s important to understand the consequences of naming somebody as your beneficiary. When you name an individual, the death benefit will be paid to them in a lump sum upon your passing. This situation can be disastrous if the person has problems managing their money or has creditor issues. It can also cause problems if the named person is a minor. In that case, a court-appointed conservator will have to manage the money until the beneficiary reaches the age of majority, at which time they will receive the money in a lump sum. Instead of dealing with a court proceeding for a minor, or distributing money to someone who can’t properly manage it, a revocable living trust allows you to pick someone you trust to distribute money to your beneficiaries at the times you decide, pursuant to terms you set (prioritize funds for education, etc.).
Once again, thank you for all that you do. You do so much to protect everyone else, and we want to take this opportunity to protect you. If you would like to discuss these questions further or if you have additional questions, please contact us. We are available for in-person or virtual consultations, whichever is most convenient for you. We have helped many first responders here in Arizona and would be honored to help you too.
