Some people hold true to the time-honored tradition of making New Year’s resolutions. Typical topics include exercise, diet and financial health. Getting our legal affairs in order is a resolution worthy of serious consideration.
And of course, such a tall order includes various components. Most local attorneys have a process and some forms that can organize important aspects of our lives and help the attorney identify what legal documents we might need. However, it is not necessary to hire an attorney to get started on the process.
First, we should identify every account that we have. Checking accounts, savings accounts, IRAs, 401Ks, annuities and other investment accounts should be listed out. For each account, the list should include that account number, contact person or administrator (i.e. your investment broker or your bank) and an approximate, current balance.
Second, we should list every significant asset that we have. Household items are not as important to list as it is to list our vehicles, machinery and real estate. We should include in this list any real estate that we may own unconventionally, like timeshares.
Third, we should identify any businesses that we may own in whole or in part. Sometimes, those business interests are in legal entities like corporations and LLCs. Other times, we may have an informal side business like construction, crafting or peer-to-peer sales.
Fourth, we should identify what debts we owe. This can be humbling and uncomfortable for many of us, and that is understandable. Especially because of the recent and impending interest rate changes, identifying our debts and those debts’ characteristics is crucial to ensure that we can remain financially and legally responsible to ourselves and our families.
Debts should be listed by creditor, balance owed, current interest rate and whether that interest rate is variable (changes as interest rates change) or fixed (set at a certain percentage that does not change through the life of the loan). If a debt is a part of a planned installment loan (like a home loan or a car loan), we should also list the duration of the remaining payments of the loan and the amount of the monthly or annual payment.
Fifth, we should compile our immediate family members’ names, addresses and phone numbers.
With this information, a local attorney can identify what legal tools we may need to protect our assets from liability/risk of loss, ensure that those assets go to whom we want when we die and empower our loved ones to make financial and healthcare decisions for us if we are unable to make those decisions ourselves. A local attorney can also help us avoid unnecessary taxes and excessive administrative fees when we die.
The key legal documents that everyone should consider having prepared by a local attorney include a financial power of attorney, healthcare power of attorney, living will and traditional will. Depending upon our family circumstances and the information compiled (see above), a local attorney may also recommend a trust, formal business entity or various, other individualized tools.
Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
