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Valued Social Butterfly
Posts: 6,878
Registered: ‎08-18-2008

Re: Living alone and keeping your emergency records updated for your family

Message 1 of 29 (2,129 Views)

lizlizzie2 wrote:
Putting your child or someone else on your bank accounts can create problems. If at any time that other person were to owe a debt to a creditor, child support, or taxes, then your accounts could be garnished.

That's true and it also could mess up the parent's estate.

Best to use a power of attorney - the legal type to be determined by the reason, time period and use.

Everybody should have at least the following as determined by the state where they reside

Last Will and Testament

Health Care Directive or Living Will with Healthcare power of attorney

Some form of (financial dealing) power of attorney.

Valued Social Butterfly
Posts: 1,690
Registered: ‎06-25-2013

Re: Living alone and keeping your emergency records updated for your family

Message 2 of 29 (2,136 Views)

Right!   Plus,  you got watch out out for the bank itself. 

My adult daughter had her own checking account in a distant city.  But same bank as me.  I had forgotten that years ago I had added her name to my account when she turned 18.  Lo and behold,  I open my statement and discover the bank lifted around $700 from my account.   "Miscellaneous" debit,  no explanation given.     Bleep ?

Come to find out  -  my kid had bounced checks.  The bank covered a few,  then stopped.  The overdrawn fee was $39 a pop,  so the whole mess quickly added up. 

When I tried to remove her name from my account,  the bank said it couldn't be done without her Consent!   Ha,  Ha,  Ha 

So I ended up having to close that account, open another one.  A lot of hassle,  changing direct deposits,  electronic transfers,  etc.   

Boy,  did I learn a lesson.  At least when the IRS or a third-party creditor files a levy,  the bank has to notify the depositor of what has happened.  Send a written notice  

  But not the Bank!  

Treasured Social Butterfly
Posts: 17,452
Registered: ‎12-25-2011

Re: Living alone and keeping your emergency records updated for your family

Message 3 of 29 (2,137 Views)

lizlizzie2 wrote:
Putting your child or someone else on your bank accounts can create problems. If at any time that other person were to owe a debt to a creditor, child support, or taxes, then your accounts could be garnished.

So true! And the government will try to collect taxes from whoever's name is on the account!

 

My widowed aunt moved in with my Mom, and when my aunt needed cancer treatment, she put Mom's name on her many CD accounts, so she could handle transfers at the bank. When Mom died first, I was told that all of those CDs would count towards the value of her estate for tax purposes, unless I could prove the money had been all my aunt's! Thankfully they kept years & years of records, so I was able to backtrack & show that none of the money was ever my Mom's .. otherwise it would have cost $30K plus in estate tax! Better if she just gave Mom power of attorney!

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Info Seeker
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Registered: ‎08-22-2011

Re: Living alone and keeping your emergency records updated for your family

Message 4 of 29 (2,151 Views)
Putting your child or someone else on your bank accounts can create problems. If at any time that other person were to owe a debt to a creditor, child support, or taxes, then your accounts could be garnished.
Treasured Social Butterfly
Posts: 17,452
Registered: ‎12-25-2011

Re: Living alone and keeping your emergency records updated for your family

Message 5 of 29 (2,205 Views)

I like the "letter of intent" idea, where you can explain how you want your funeral to be. I remember when someone I know died last year, and somehow the funeral cost them close to $20K, which I found exhorbitant! I didn't want to ask questions, since it was after-the-fact by then, but I don't want anyone misguided enough to spend more than is absolutely necessary for me! I have no siblings or children; no one's coming to visit me at a cemetery. I'd rather be cremated & have the ashes spread somewhere.

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Re: Living alone and keeping your emergency records updated for your family

Message 6 of 29 (2,211 Views)

A short article addressing the topic at hand...

 

http://www.moneytalksnews.com/2014/04/18/estate-planning-documents-you-need-right-now/?utm_source=ne...

“The third-rate mind is only happy when it is thinking with the majority. The second-rate mind is only happy when it is thinking with the minority. The first-rate mind is only happy when it is thinking."
War With Honour, 1940 ~ A.A. Milne
Valued Social Butterfly
Posts: 1,690
Registered: ‎06-25-2013

Re: Living alone and keeping your emergency records updated for your family

Message 7 of 29 (2,262 Views)
Which state do you live in? (If you don't wish to say, understand) Just never heard of advice to use a trust instead of designating a POA.
I did not give the attorney my health care POA proxy. That goes to a close neighbor, same age, who does know my feelings on end of life issues, and is not in my will.
I think it would be a huge conflict of interest for the same person to hold both regular POA (for managing financial affairs) and also health care POA. In fact, I don't think our state even permits it.
Treasured Social Butterfly
Posts: 17,452
Registered: ‎12-25-2011

Re: Living alone and keeping your emergency records updated for your family

Message 8 of 29 (2,271 Views)

They say that the easiest & most "seamless" way to do it, is to have a Trust set up, and have the person you would give POA as co-Trustee (or whatever the official name is), and if they're also your medical surrogate, that probably covers all bases .. but you've really got to trust that person totally. That's not just their level of ethics, but that they're on the same wavelength, on the gray areas not exactly specified in a living will.

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Valued Social Butterfly
Posts: 1,690
Registered: ‎06-25-2013

Re: Living alone and keeping your emergency records updated for your family

Message 9 of 29 (2,278 Views)
As I understand (here in Maryland) it, all durable POA documents are "springing". Whoever is holding it CANNOT make any financial decisions, or access any funds or accounts, without furnishing some sort of statement to the financial institution like "Mrs. so & so has been confined to such and such hospital, nursing home, whatever and is under the care of Dr. so and so. He has advised she is incapable at this time to blah blah blah , whatever. The scenario I imagine is I have been in a serious accident, or suffered a stroke, and cannot communicate.
However, this is not foolproof. My local bank assured me they would never permit Mr. X to enter my accounts without corroboration that I am indeed one sick puppy. However, all of the mutual fund companies I deal with seem to say all they will do is insist on a certified copy of the POA, their legal dept then checks to see if it conforms to state law where I live, and that's it! No further investigation into how far I may have stuck one foot in grave.
So, in some states, your point is well taken. Which makes it even more vital to choose someone you can trust implicitly, like a lawyer with a sterling record of many years standing who is unlikely to risk losing his license and reputation for doing something unethical.
Treasured Social Butterfly
Posts: 17,452
Registered: ‎12-25-2011

Re: Living alone and keeping your emergency records updated for your family

Message 10 of 29 (2,256 Views)

The problem with a Power of Attorney - as I see it - is that when someone has it, they have legal access to EVERYTHING, even before they need it. There's something called a "springing POA", which doesn't come into effect until you're "ready", but the problem is that if something catastrophic happens, you may not be able to indicate that you're ready.

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