Things You Need for Your Finances in Case of a Medical Emergency
- Author: Jeffrey Simmons
- Posted: 2024-06-15
In the unlikely event of you experiencing a severe medical emergency that can lead to disability or death, you need to have appropriate documentation that will let your family take over your finances if you are incapacitated. Nobody ever expects a disaster to happen that causes such damage, but it is always best to be prepared for everything so you and your family never get lost in the woods. If you have all that you need, you show that you and your family care for each other to make sure your assets are not lost or mishandled in case of a catastrophe. Here are things you and your family need to possess to secure your finances in case of an emergency and what to do if something gets lost.
Essential Documents That All Adults Should Keep Safe
The first important document that you must have in your record is a health care directive. This explicitly says which type of medical treatment you would like if you are incapacitated and are unable to approve anything medically. Additionally, you could authorize someone to be your medical attorney, who will be able to make the medical decisions that you can not make on your own. If you do not have this health care directive, you will likely not have someone you trust to make important medical decisions for you. In the worst-case scenario of a severe medical emergency, this is paramount.
The next significant thing you need in case of a disaster is the durable power of an attorney. Much like a health care directive, this document is for appointing a lawyer to make decisions for you if you are unable to do it yourself due to medical reasons. This attorney will take over your day-to-day financial processes, such as bills and taxes, while you are incapacitated or recovering from a severe medical incident. However, the process is not uniform across all banks. You need to work with your individual bank to navigate their forms and policies for someone who will be able to use your account in a dire emergency. Some banks accept the power of an attorney without needing to fill out extra forms. Once you have all the correct forms, you should go to your bank and submit them. They will then have them on file just in case of a disaster.
The most important financial document everyone needs to have is a last will and testament. A simple fact of life is that everyone who is born will die eventually, and nobody knows when exactly their time will be. To avoid any disputes within your family over your assets, be sure to allot certain things for certain people as you determine. This will ensure nothing gets lost or fought over. Moreover, you should also set aside money for funeral costs because they are never cheap. It is considerate for your family to not make them need to scramble at the last minute to arrange for the payment of expensive funeral costs while they are in a state of grief. Finally, you always should update your will periodically as your financial state and assets change. It is never pleasant to have to plan for something bad happening, but in the worst-case scenario, it is always best to be prepared by having a will for your family.
More Important Things You Need And Where to Store Them
Along with specific documents relating to the procedure in case of severe medical emergency or death, you should always keep your personal government documents in a safe place that your family knows. This includes your passport, birth certificate, financial statements, tax documents, insurance policies, and more. This will greatly aid your family in sorting out your finances if you are not able to control them yourself. These documents should be stored in a safe place such as a bank safe or a fireproof box inside your home.
If Anything Gets Lost
Losing important financial documents can be very dangerous and frustrating, but there are normally ways to obtain new ones. Credit and debit cards are always replaceable through your banks and credit companies. If you lose your driver's license or other important documents, you should call your state's social security agency to get them to put an alert on your account. This will prevent identity theft, just in case someone else got their hands on them. Furthermore, you should also store securely all the phone numbers of your essential institutions to contact in case of an emergency.
