What Do I Need to Do to Make Sure My Financial Affairs are in Order before I Die or Become Disabled?

We all know, in the abstract, that life is unpredictable. But most of us still put off the uncomfortable conversations and decisions that come with that reality.

The truth is getting your financial and legal affairs in order isn’t just for the elderly or seriously ill — it’s something every adult should handle long before it feels urgent.

Because when the unexpected happens, the difference between having a plan and not having one can mean everything for the people you love: less stress, fewer legal hurdles and clearer direction during an already overwhelming time.

If something happened to you tomorrow, or you were suddenly unable to make decisions, would your family know what to do?

Here’s what you need to put in place now to make sure they do.

I’ve Got an Incurable Disease. What Do I Do to

Legally Prepare My Finances for My Family?

I’ve got an incurable disease and expect to need full-time care within six months. What can I do to prepare financially and legally?

That’s what a Clark listener asked.

Asked J in Utah: “Hi Clark. I am a long-time listener (since 1993) and grateful for your decades of advice.

“I have recently been diagnosed with an incurable disease (ALS/Lou Gehrig’s Disease). I am in my 50s, married with two kids. I will likely be in a wheelchair within the next six months and will thereafter need constant care.

“Aside from a will, living trust, health care directive, and financial power of attorney, what else should I do to get my affairs in order?”

Clark expressed heartfelt sympathy and also respect and admiration for J.

“I want to tell you how sorry I am for you and your family with your diagnosis of Lou Gehrig’s Disease. It’s a tough, tough road in front of you,” Clark says.

“I can tell you are a very thoughtful individual. You’ve already thought through the documents you should have to protect your family’s interests. You have done everything you should’ve done.

“The healthcare directive obviously is a very important thing for you to do here. And so I’m confident and comfortable that your time should be spent enjoying your family.

“I find your words inspiring. Because you’ve received a brutal diagnosis. And yet you’re doing the things you need to do to take care of your family.”

End-of-Life Legal Documents to Prepare for Your Finances and Health

If you’ve never looked into end-of-life legal documents or thought about what would happen if you’re living but incapacitated, here’s a quick overview of the key tools J mentioned. Keep in mind that everyone’s situation is different, so your specific needs may vary depending on your family, finances and health.

• Will: Also called a last will and testament, this legal document dictates who will inherit your assets, including your money, when you die. Clark urges everyone to create one. We can direct you to the best online will makers.

• Living Trust: This estate-planning tool allows a designated trustee to manage a person’s assets and distribute them to the correct beneficiaries after that person’s death.

• Health Care Directive: Sometimes called an Advance Directive, this outlines your treatment wishes and may also designate a representative (known as a medical power of attorney) to make medical decisions for you if you become unable to do so. There are multiple types of advance directives and the official names of these documents can vary between states.

• Financial Power of Attorney: Similar to a medical power of attorney, this allows a designated person to make decisions on your behalf regarding your finances and business interests.

Clark also thinks it’s a great idea to prepay for your funeral while you’re still alive.

Clark Howard is a nationally syndicated talk show host who focuses on helping you save more, spend less and avoid getting ripped off. A listing of all the radio stations that carry his show can be found at http://www.Clark.com in addition to his podcast The Clark Howard Podcast and his YouTube channel.