What Basic Financial Documents Should I Have?

Taking care of your finances is one of the most important ongoing tasks a person has throughout their life. Once a year, it is beneficial to take the necessary time to get your financial documents in order as well as update the ones you currently already have. In doing so, there are certain basic financial arrangements that all people should consider making. This is regardless of their age or their current circumstances. This can include creating the following basic documentation:

A Will

With a will, you are able to control how your assets will be divided amongst your beneficiaries. This ensures that this is not done by the state, but by your final wishes. In addition to this, you can designate who you wish to be the guardian of any minor children that you may have. If the document is written properly, it can even increase your beneficiaries’ inheritance by including certain tax-saving strategies.

Power of Attorney

This document names another person as your agent. This is needed in the event that you were to become disabled or seriously ill. A power of attorney allows this individual to pay your bills, deposit your checks, and make a variety of decisions on your behalf. This person can either become effective immediately or only when the injury or illness occurs. 

Directive to Physicians

A directive to physicians is also referred to as a living will or a health care directive. This document tells your doctor whether or not extreme measures should be taken in order to keep you alive in the event that you become terminally ill or permanently unconscious. In addition to this, the document will lessen the burdens on your family by having a designated and detailed plan in place if it is needed. This ensures your family does not have to wonder or argue over what you would have wanted.

Financial Inventory

It is important for anyone to have a financial inventory. This can be done by preparing a list of all your bank accounts, other assets, income sources, mortgages, insurance policies, credit cards, and funeral arrangements. In addition to this, the name and phone number of your accountant, lawyer, doctors, and insurance agent should be included within this.

Contact our Firm

Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.