Senior Connections

Farmingdale Public Library

 

May/June 2019 Newsletter

Topic of the Month

Being Prepared for End of Life

 

Regardless of whether the death of a loved one is unexpected or anticipated, dealing with it is always difficult and usually catches family members unprepared. A little planning can go a long way in easing the stressful situations.

Plan Ahead

--Prepare a "Last Will & Testament". This documents intentions of  person for whom it was written and gives instructions for how you want your individual assets distributed to your heirs.

--A "Living Will" affords your loved ones peace of mind regarding your medical wishes and life support intentions.

--A "Health Care Proxy" designates a personal representative to make medical decisions if you are incapacitated.

--A "Durable Power of Attorney" authorizes personal representative to make financial decisions if you are incapacitated.

 

--Plan for financial welfare of your survivors, i.e. insurance policies, retirement plans, investments, trusts, etc.

--Express your preferences for funeral arrangements. Consider a "Pre-Plan".

--Choose and ask someone you trust to be your executor or personal representative. He or she should work closely with attorney, tax preparer, financial advisor and insurance agent to accomplish all necessary obligations.

 

How Does Death Affect Assets?

An estate is created at time of death.The estate consists of assets that were owned at time of death. The estate is responsible for paying all remaining debts of decedent, as well as any incurred to handle final affairs. The estate will exist until all bills are paid and remaining assets distributed.

 

 What Needs To Be Done?

After funeral arrangements are made and services conducted, affairs of estate need to be completed. This generally involves an attorney probating estate, reading the will and carrying out its directives. The executor or personal representative is responsible for the distribution of assets and filing final income tax returns. A professional tax preparer (CPA) can facilitate actions to be taken and required forms to be filed with IRS.

 

Being prepared for end of life is essential for fulfilling decedent's wishes and for family's peace of mind.

 

(Source: Information summarized & amended from National Association of Tax Professionals - NATP "Death & Taxes" publication available at library Reference Desk)