A BUSINESS OWNER:
Q. “A colleague of mine passed
away suddenly and I had the opportunity to see first-hand the financial and
emotional hardship he and his family are dealing with on an on-going basis because
he had no plan for the unexpected events. How can I protect my wife and kids in
case something happens to me? ”
It is understandable that as the provider and
protector of your family, you want to ensure that they financially and
emotionally secure. Have a succession
plan for your business and leave your personal life in order. Here are the top 10 tips to protect you, your
spouse and family in case of any tragedy--
1- Short term disability and long term
disability policies will ensure that you have sufficient income to provide
assistance to you and your family for living expenses, prescriptions, tests or
treatments.
2- A medical care policy that will care
for you or a loved one in case of extreme disability, dementia, or sickness is very
different than a disability policy. It will provide you with the medical
attention, housing or care-aids when required.
3- A power of attorney with delegation
to a family member or trusted advisor will allow temporary decision-making on
your behalf a simpler process.
4- A current last will and testament, a
living will and a medical directive are all important so that your wishes are
clear to family, healthcare providers and legal counsel. If you don’t have these, do it now.
5- Keep a current contact list for your
lawyers, accountants, bankers, consultants, agents, advisors, managers, friends
and associations.
6- Keep a copy of your birth and
marriage certificates on file and easily accessible. They may be needed when dealing with
government agencies and when applying for transfer of benefits to your spouse.
7- Consider life insurance that doesn't
change in frequency, payment or benefit during your lifetime. That way it will
be with you and your family forever without having to pay more, or lose it.
8- Consider creating trusts for your
family members. This can be a reliable income stream for family members without
it being taxed as income. Check with
your accountant or financial planner on the current regulations.
9- Organize personal bills and make notations
for others that are left behind since so many bills are now e-statements.
10- Keep a register (list and copies) of
all of the aforementioned documents and information PLUS the registered owners
of your personal assets such as your accounts, investments, property, safety
deposit box, and vehicles in one place
that is easy to find by your family.
Tina Olexa is a financial advisor, mother and a
small business owner. In her role as financial advisor for over a decade with
many individuals, she has witnessed many tragic events in her clients’ lives –
from health-related to sudden, unexpected tragedies.
Tina developed Your Backup Plan system to ensure that her clients are
prepared and their families are protected when hardship occurs.
Follow
her on Twitter @TinaOlexaBC.
