People are often too busy figuring out what to do with the money they have right now. However, the truth is we cannot live forever. While, the other possibility is we cannot live the way we lived in the past, due to chronic illness, injury or other unexpected events. If those accidents happen to you, according to CNBC Invest In You, you have to prepare these 3 documents that can save your financial life.
1. A will
Everyone should have a will. Your last will and testament will show whom you want to give your assets after you die. For example, if you are minor children, a will allows you to name a guardian.
Besides, you can also specify who will take care of your kids and help them manage their day-to-day activities if something bad happens to you.
Also read: 5 Money Lies Millennials Need to Stop Telling Themselves (Part 1)
2. A durable power of attorney
If you are lying in a hospital bed or recovering from a serious injury, paying a mortgage or other bills is impossible. Therefore, you can draft a legal document. Within the document, you can assign someone else to do that task.
A durable power of attorney allows someone to step in and make financial decisions, including making sure bills are paid. You can name your spouse, another family member or a friend. Moreover, you can also choose an alternate in case the person you choose is unable or unavailable to fill the role.
Also read: Financial Literacy for Millennials
3. A living will
A living will is not a substitute for a last will and testament. In some countries, it’s called an “advanced directive” for medical decisions. It’s a written document that lets you express your wishes for medical treatments you would or would not want to be used to keep you alive. That includes resuscitation and intubation.
The person you identify as your health-care proxy must abide by what you have spelled out in your living will.
Now, you can start preparing these 3 documents to save your financial life.
