Time to review your personal affairs

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I hope you enjoyed the holidays and spent time with family and friends. I hope they were joyful times and provided good memories that will last your lifetime.

With the New Year, many people make New Year’s resolutions; few achieve them. There is a day referred to as “Quitters Day” when people give up on their New Year’s resolutions. This year that date was January 9. Not exceedingly long, was it? Experts say the reasons for quitting are normally lack of planning and returning to routines.

People do the same thing with their personal affairs. People often talk to me and ask questions about personal affairs planning. They tell me they need to change deeds, update powers of attorney, create a living will, etc. They often end with, “I am going to get on that.”

Frequently, it ends there. People come into our office and tell us they discussed changing a deed (or other document) with their spouse, but never got around to it before their spouse passed. They ask how to “fix it.” Regrettably, there is usually no easy fix.

Also, in court I often hear comments to the effect: That document is Dad’s Will, but he told me he was going to change it, and he wanted this or that done. That normally doesn’t carry much weight. Dad may have said it, but didn’t change the document he signed as his Last Will and Testament stating his written desires.

You should conduct a comprehensive review of your personal affairs every year. That review should include all documents relating to your personal affairs in case you become incapacitated, die, or have any reason arise preventing you from administering your affairs.

During your review, look at changes that have occurred in your life. The changes may not have been significant, but might warrant a change in plans. Was there a marital change or death? Did a beneficiary or heir do something to make you want to change their receipt of your funds or property?

Often when looking at marriage/divorce, people only think about addressing issues related to their change of marital status. There could be circumstances where the marital change of a parent, sibling, or child could require changes needing to be made in your affairs.

For example, is there a Power of Attorney granting power to someone who now may not have your best interest at heart? Especially if it involves “pulling the plug” on life support. Also, is there a beneficiary or heir whom you no longer want to receive funds or property?

Your wallet is a good place to start your review. Check your driver license expiration date. Do you need the Star ID? If so, you can call our office or go online to see the documents required by the Alabama Law Enforcement Agency (ALEA). If all you need is a renewal, you can do that in our Probate Office. You can renew driver’s license up to three years after expiration without taking a driving test. If the expiration is over three years, you must see an ALEA examiner.

While looking in your wallet, check credit and debit cards. Do you still need all the cards you carry? Have any expired? Do you have any auto-payments set up on expiring or expired cards? Are the payments still valid?

Are you a military retiree/veteran? Do you have a military and/or Veteran’s Administration identification (ID) card? Are they still valid? If you are a military retiree, at age 65 your ID card requires updating. Your military benefits could also change. For example, you are probably no longer eligible for medical care through the military. You might be required to enroll in Medicare. You should be aware there could be penalties if you do not enroll in Medicare when you reach age 65. All military retirees should contact their respective military service’s benefits office and the Social Security Administration to become familiar with changes required at age 65. 

If you are entitled to military benefits, make a note to whoever might oversee your affairs. Tell them to check with the local Veterans Affairs representative to determine any benefits to which you might be entitled in the event of incapacitation or death and if a surviving spouse may be eligible for benefits.

Check your automobile and/or boat tags. Are they current? Write the month they are due on your calendar. 

Moving on to the more difficult items. Create a detailed list (it is advisable to double-space this list) of important documents and where you keep them. List all bank accounts (banks, credit unions, investments, bonds, and retirement accounts by type account) and who has access. Also include current Will and date signed, Advance Directive/Living Will, Prenuptial/Marriage Agreements, Birth Certificate, Divorce Decrees, Military Separation Documents (DD-214), Social Security Card, Medicare Card, Health/Dental Insurance Cards, all Insurance Policies (Health, Life, Vehicle, Homeowners, etc.), Death Certificate(s) from other family members if it could impact your affairs, Passport, Employee Benefit Documents, Tax Documents, Deeds, Trusts, and all sources of income. You may have other items you should list. After you gather all this information, make a copy. Store the original in a safe place that a trusted person knows and has access. It could be a good idea to make an extra copy to provide to someone you trust. 

Using a copy, review and checkoff items that remain accurate and make notes for the items to change. Do you have a Will? If so, review it. Is it signed? Does it express your desires today? If you don’t have a will, should you?

Do you have an Advance Directive/Living Will? If so, review it like you did your Will. If not, consider establishing one. Alabama Code 22-8A-4 has an excellent example of elements to be included in the Advance Directive and how it should be written. 

Review life insurance policies. Make sure each policy is listed and then review the beneficiaries and their payout percentages. Is the policy paid-up or must you continue paying premiums? 

Do you have investments or retirement accounts? Do you want these accounts to become part of your estate or should you take action to transfer them upon your death to a beneficiary?

Do you own real property? If so, does the deed have a survivability clause? If not, you need to address distribution by changing the deed or putting the property in your Will. 

Do you have a Guardian and/or Conservator? Do you need assistance making medical decisions as they relate to your person? Is the checkbook getting a little too cumbersome for you to keep updated? These are things to think and decide about while you are able. 

As you review each item on your list, be critical and thorough. Try to remove any ambiguity. Make sure someone has access to items in case the need arises. Plan so you can continue to exert influence over your affairs. Plan for the inevitable.

As always, the information above is to inform; not advise. If you have legal questions, contact an attorney. No person should ever apply or interpret any law without the aid of an attorney who analyzes the facts. If you have questions regarding investments, contact a fund manager. Until next month; stay safe and God bless!