Who, Legally, Gets to Walk through the Doorway to Your Life?
A Guide to Estate Planning Fundamentals…and the Questions You Should Be Asking
by Chris Brown, Ph.D., CFP® and Ron A. Rhoades, JD, CFP®
Imagine, for a moment, that tonight, on your way home, you are involved in a sudden, unexpected accident. You are injured, but not fatally. You are simply…unconscious. You are alive, but unable to speak, to communicate, or to sign any document.
Your assets – your bank accounts, your 401(k), your mortgage – are suddenly locked away from the outside world. Bills are due. Children and pets may need to be cared for. Your spouse/partner or parents rush to the hospital, desperate to help.
The question is this: Who, legally, gets to walk through the doorway to your life? Who has the immediate, undisputed authority to pay your bills, manage your investments, speak to the doctors, take care of your child/pets, or sign papers for you?
You may think it’s your partner or parent. But in that moment, with no written, signed plan in place, your loved ones will discover that the person who walks through that doorway is not them – but an adversarial stranger: The Court.
The decisions you make now – while you are healthy, of sound mind, and able to fully think through every scenario – will determine who takes control and how they are allowed to act, both in your incapacity and after your death.
There’s a common misconception that “estate planning” is for people with sprawling mansions, multiple accounts, or fortunes. But the truth is, if you have a family, if you have assets, or if you simply have opinions about your own future, you have an estate. And you need a plan.
In our latest downloadable PDF, A Guide to the Fundamentals of Estate Planning, Ron presents a conversation with two hypothetical clients. As an estate planning attorney licensed by the Florida Bar with over 40 years of experience, Ron provides guidance through the distinct documents that comprise a solid estate plan:
- Durable Power of Attorney, to protect your financial assets during incapacity.
- Advance Health Care Directives, to provide guidance and designate who can make health care decisions for you.
- Testamentary Guardianship, to provide protection for your minor children.
- Last Will and Testaments and Revocable Living Trusts, with a discussion of how these two vehicles operate in the public and private spheres.
- How to ensure your estate plan and your financial plan work together, including a look at how assets are transferred upon your death.
- Why designating a “Trusted Contact Person (TCP)” is an essential protection against scams and health emergencies.
Ready to dive in?
About the Authors
Ron A. Rhoades, JD, CFP®
Ron Rhoades is an Associate Professor of Finance at the Gordon Ford College of Business, Western Kentucky University. He also serves as a financial advisor at Scholar Financial, a practice within XY Investment Solutions LLC. With a background as both an attorney and a CERTIFIED FINANCIAL PLANNER™ professional, Ron is a nationally recognized authority on the fiduciary duties of financial advisors.
Chris Brown, Ph.D., CFP®
Chris Brown is a faculty member in the Department of Finance at the Gordon Ford College of Business, Western Kentucky University, and a financial advisor at Scholar Financial, a practice within XY Investment Solutions, LLC. He holds the CERTIFIED FINANCIAL PLANNER™ designation and a Ph.D. in Finance. His research and teaching focus is on behavioral finance, retirement planning, and evidence-based investment strategies.
This article and the downloadable guide are for educational purposes only. Scenarios and references to client experiences are used solely to illustrate financial planning concepts. Dr. Eleanor Vance is a hypothetical client and is not directly representative of any current client of Scholar Financial of XYPN Sapphire. These examples may not apply to your individual circumstances. It should not be construed as financial, legal, tax, or investment advice, nor as a recommendation to implement any specific strategy, product, or investment. As a fiduciary, we provide advice tailored to each client’s goals and financial situation. Consult with a qualified financial professional before making investment decisions.
Advisory services are offered through XYPN Sapphire and its various IAR brands under which it operates. XYPN Sapphire is an SEC registered investment adviser. For additional disclosure and privacy information, please visit XYPNSapphire.com/disclosures.
