Are You Prepared to Handle a Personal Financial Crisis? s
Our firm does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that could have tax consequences. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state Individuals who are married or in a committed relationship face the possibility they’ll end up managing ﬁnances alone at some point in their lives. Unfortunately, the ﬁrst time many experience handling complicated ﬁnancial matters alone is during a personal crisis following the death or divorce of a spouse or partner.
We’ve prepared a list of thought- provoking questions pertaining to ﬁnancial ﬁtness and crisis preparedness. You can use these as a starting point to check how prepared you are to handle a personal ﬁnancial crisis in your life. Begin by reviewing the questions, determine what you’ve already done, and check those items off the list. For the questions you need to address or take action on, seek the advice of professional advisors and trusted family members.
Do I have a clear picture of where my assets are located?
Will my retirement assets provide a comfortable retirement for my life expectancy?
Do I have a well-diversiﬁed portfolio?
Are my investments appropriate in today ’s economy?
Are my assets titled properly? Do I have an emergency fund?
Am I taking advantage of techniques to reduce my taxes?
Do I have a will?
Is my will current?
Have I determined what my family may owe in estate taxes?
Have I funded my estate-tax liability?
Have I explored and taken advantage of wealth-transfer techniques?
Do I wish to provide for charitable giving? Are my power of attorney and my living will up to date?
Do I know my credit rating? Could I get a loan if I applied?
Do I have enough insurance coverage to cover medical expenses?
To provide for disability/long-term care?
To provide for family members’ security?
To fund estate-tax liability?
Have I coordinated my advisors’ (attorney, CPA, banker) activities?
What changes in my life are likely to occur within the next three years?
Do I know the status of my parents’/ children’s ﬁnancial situation and the implications for my ﬁnancial well- being?
Would I be prepared for a family emergency if it happened tomorrow?