Money Matters

Tax Refund Opportunity

2007-01-02T10:35:00.000-05:00

By Lisa Leslie

People filing 2006 tax returns in 2007 will be eligible for a refund of the long distance telephone taxes they have paid. Tax filers will also have more options and flexibility for choosing how to receive their federal income tax refunds.

Federal appeals courts have ruled that a long distance telephone tax that has been collected since 1898 is no longer compatible with today’s modern information society. As a result of these decisions, consumers who paid the long-distance tax will be eligible to file for a refund of the long distance taxes they have paid for the last three years.

People who would like to receive the refund will file on their 2006 returns. All of the 1040 forms will include a line for requesting the refund. The refund only applies to long distance. Taxes on local phone service have not gone away.

People who have kept records of their old phone bills will be able to claim the full amount of the taxes they have paid. The IRS is providing a standard refund from $30 -$60 for those who have not kept records. The exact amount of your standard refund depends on the number of exemptions you claim.

One exemption – the refund amount is $30.
Two exemptions - $40.
Three exemptions - $50.
Four exemptions - $60.

America Saves Week

2006-12-22T14:09:00.000-05:00

America Saves Week

February 27 – March 4, 2007

The first National America Saves Week offers a chance to highlight savings, financial skills and your programs. A guidebook for Extension Agents has been developed to assist you in promoting this week. You can join this effort even if you do not conduct a SAVES campaign. This is a great opportunity to promote your financial and consumer programs. Plus it is very easy to do! Contact Elaine Courtney if you need a copy of the guidebook.

List of Approved Providers of Personal Financial Management Instructional Courses (Debtor Education) for Florida

2006-12-21T13:15:00.000-05:00

American Bureau of Credit Services, Inc.
5773 West Sunrise Blvd
Plantation, Fl 33313
1-800-701-0437

American Debt Solutions, Inc.
3075 S. Federal Hwy
Delray Beach, Fl 33483
800-246-4019

Consumer Credit Counseling Service
3670 Maguire Blvd, Suite 103
Orlando, Fl 32803
407-895-8886

Dave Ramsey's Abridged Financial Peace University-Bankruptcy Edition
The Lampo Group, Inc
1749 Mallory Lane
Brentwood, TN 37027
888-227-3223

Mamie L. Davis
Chapter 13 Standing Trustee
200West Forsyth Street
Suite 1520
Jacksonville, Fl 32202
904-358-6465

Family Counseling Service Inc.
1629 Atlantic Blvd.
Jacksonville, Fl 32207
904-396-4846

Family Life Resources, Inc
5802 E. Fowler Ave
Tampa, FL 33617
800-553-8621

InCharge Education Foundation, Inc.
2101 Park Center Drive, Suite 310
Orlando, FL 32835
866-729-0049

University of Florida/IFAS, CES, FYCS
3002 C McCarty Hall
Gainesville, Fl 32611
352-392-1945 x 228

Laurie K. Weatherford
Chapter 13 Standing Trustee
150 N. Orange Avenue, Suite 450
Orlando,FL 32801
407-648-8841

CFOToday, Inc
401 St. Francis St
Tallahassee, FL 32301
850-681-1941 ext 313

Consumer Credit Counseling Service of West Florida
14 Palafox Place
Pensacola, Fl 32502
800-343-3317

Advantage Bankruptcy Class, Inc
5775 Blue Lagoon Drive, Suite 230
Miami, Fl 33126
305-267-1041

Carrying Credit Card Balances Can Be Expensive

2006-12-20T14:06:00.000-05:00

By Lisa Leslie

One of the best financial steps you can take is to pay off credit card debt. Eliminating credit card debt will save you many dollars in interest charges. This will mean less of your income will be lost on interest charges. It’s almost like a boost in pay!

Steps to reducing debt:

Stop using credit like extra cash. This means your spending needs to be less than your take home pay.
Make a list of all your debts. The list should include the balance, interest rate, and monthly payments.
Generally, paying off loans that are at the highest interest rates first is the way to save money on interest payments.
Pay more than the minimum balance each month.
Track all expenses. This will help you figure out areas where you are overspending.
Be wary of high interest consolidation loans. If you are carrying a large amount of debt compared to your income or you have a poor credit score, you may not be able to get a consolidation loan at favorable rates.
Avoid payday loans. These loans usually have a very high interest rate.
Shop carefully and be vigilant if you decide to use a credit counseling service. Beware of companies that promise that you will pay significantly less than you owe. This could hurt your credit score. Debt reduction can take time, but usually comes with long term benefits.

Funeral Home Price List Required

2006-12-14T12:40:00.000-05:00

From FTC Tests Funeral Homes For Compliance:
The Funeral Rule requires funeral homes to give consumers an itemized General Price List (GPL) at the start of a visit to the home to make funeral arrangements. Funeral homes also must show consumers separate casket and outer burial container price lists if those prices are not included in the GPL. By requiring itemized prices, the Rule gives consumers the ability to compare prices among funeral homes and buy only the goods and services they want.

Consumer Information:

Paying Final Respects: Your Rights When Buying Funeral Goods & Services

Rindiendo Honores: Sus Derechos al Momento de Comprar Artículos y Servicios para Funerales

Plan Ahead for Incapacity

2006-09-18T16:09:00.000-04:00

At some point in life, many people will need help in managing their affairs or in taking care of themselves. This can happen at any age and for many different reasons. It’s most likely to happen, as you grow older, especially in the years prior to death – a time often characterized by increasing mental and physical decline. Many individuals are disabled six months or longer before they die and may be unable to make their own decisions. A variety of legal documents are available to assist during these periods; some provide temporary help, others offer more permanent assistance. Planning ahead enables you to make important decisions about how your personal and financial affairs will be handled if you are unable to manage.

There are numerous issues to consider including:

What end-of-life decisions might you or your family members face?
How can you best prepare for the potential of mental or physical incapacity?
What planning tools, including the creation of legal documents are available?
Older people and their families also need to consider a variety of choices such as long-term care, guardianship designation, power of attorney, and dispersal of property and household items.
Who will execute the last will and testament?
Likewise, choices need to be made regarding heroic measures to prolong life and the possibility of organ donations.

These are not pleasant issues but when possible, the family needs to plan ahead. Discuss the issues with your family or persons you trust. Early discussion helps to avoid decisions that are in opposition to one’s lifestyle and wishes, as well as decisions that are unacceptable to family members or significant others.

Legal documents such as advanced directives are available to enable you to exercise more control over your life.

Advanced Directives

An advanced directive is any written document signed in advance, which gives explicit instruction regarding healthcare treatment or which names someone to make such healthcare decisions for you, if you are unable to speak for yourself. Advance directives usually take the form of a living will, healthcare surrogate, or durable or springing power of attorney.

Living Will

A living will is a document that assists an individual in making his or her wishes known regarding life-prolonging treatment and “artificially provided nutrition and hydration.” Generally, a living will is quite limited in applications. A living will allows individuals to prepare in advance for the time that they can no longer actively participate in making decisions about their healthcare. Typically, you and two other people must sign a living will; each must be at least 18 years old, of sound mind, and of no relation to you. They cannot be your doctor or employed by your doctor. They also cannot be employed by the healthcare facility where you are a patient or anyone responsible for paying your medical bills.

Some states will accept a notarized living will. Be sure to keep at least one copy in a safe, easily accessible place. You may wish to carry a copy with you when you travel. Your wishes may not be honored in another state or country if they conflict with existing laws of that state or county. The rule of the state where the treatment occurs controls not the state where the living will was signed. Nevertheless, even if the living will is not honored in the treatment state, it is valuable evidence of the patient’s wishes. It’s also a good idea to provide a copy of your living will to your physician for your medical record and to relatives with whom you might live or visit.

A national study recommends that you (or your healthcare surrogate if you are incapacitated) discuss these issues with your attending physician and have noted in your chart that you have a living will. This will help in the event of an emergency that occurs at the time when your physician is not in the hospital. Otherwise, heroic measures might be taken which you have specified that you do not want implemented. The study also showed that your living will should spell out which heroic measures you do not want taken.

Healthcare Surrogate

A healthcare surrogate is a trusted person you name to make medical and health care decisions when you are unable to do so. The naming of the surrogate is very important. Surrogates must know your values and wishes intimately, because they serve as your voice and advocate. In most states, you can designate a healthcare surrogate in your living will.

There is a growing trend across the country to combine the living will and healthcare surrogate (which is also called a healthcare power of attorney) into a single comprehensive document. Such a document ensures that the majority of health care decisions for individuals lacking capacity, such as day-to-day care and placement and treatment options, are covered.

At minimum, both a living will and health care surrogate should be executed at the same time. Generally speaking, a living will merely states your desires about life prolonging treatment when you are considered terminal, while a health care surrogate makes medical treatment decisions for you if you are unable to make them for yourself.

Organ Donations

Many people die each year while waiting to receive an organ transplant. While in recent years the supply of donated organs has increased, the number of transplants performed has also increased. Unfortunately, there is still a great shortage of donor organs.

Some individuals simply do not make their wishes to donate their organs known. Others may believe their religion does not allow for organ donations, and cite a religious reason for not electing to donate their organs. Most religions permit their followers to donate their organs to allow another’s life to be spared. If you have questions on these issues, check with your religious leaders. If you decide to donate your organs upon your death, you need to make your wishes known to others and note this on the back of your driver’s license, following the proper procedures for your state.

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

Legal Documents

2006-09-18T15:56:00.000-04:00

An earlier newsletter focused on healthcare surrogate and living wills. This newsletter will continue to examine legal documents available to help plan how your personal and financial affairs are to be handled when you are unable to take care of them.

The Durable Power of Attorney

The durable power of attorney is a more comprehensive document since it can give an individual or individuals decision-making power when your are disabled or unavailable to handle your affairs. It can cover healthcare decisions and personal matters, but is usually covers financial decisions if you become incapacitated. You might feel more comfortable having someone else manage your financial decisions because of his/her expertise. On the other hand, you might want to grant durable power of attorney to the same person you name as your healthcare surrogate. Your doctor and attorney can assist you in specifying which medical procedures and treatments you want and which you do not want. It is wise to do this now when you are young in case of an accident or other unforeseeable tragic event.

Patient Self-Determination Act

This legislation has been passed to inform an individual of his/her rights to exercise more control over his/her life. Under this act, healthcare facilities must inform all adult patients of their rights to create an advance directive, such as a living will, designation of a healthcare surrogate or durable power of attorney; explain the facility’s policies for carrying out patient decisions; and provide education for staff and the community about advance directives, including when and how they may be used. This law, although very important for the terminally ill, applies to any person using the healthcare system. The law states that hospitals, hospices, nursing homes, and all other healthcare facilities that receive Medicare funding must provide patients with written information regarding their rights to accept or refuse any medical treatment.

Representatives You Choose

Substitute Payee

A substitute payee is typically used only for the purpose of providing you with help in cashing and writing checks. Your bank will provide you with the appropriate forms for designating a substitute payee.

Representative Payee

A representative payee is used in a government benefit program such as Social Security. The person asking to be named as representative payee must file an application and must provide the Social Security Administration with evidence of the relationship to the person to whom the checks are made out. The representative payee must use the payments for taking care of the Social Security recipient and must submit a written report on how the funds are actually spent.

Court Appointed Representatives

In some cases, a court will appoint a representative for an individual who can no longer handle his/her affairs and who have not made arrangements for executing his/her wishes. For this to happen, the court must conduct a trial by jury to determine the individual’s ability to manage personal or financial affairs. While the specific terms of these positions vary from state to state, they are found nationwide. If a person is judged to be incapable of managing his or her affairs, the court may appoint another person to one or both of the following positions:

Conservator. A conservator is the person who has control in managing the business and financial affairs of an individual for reasons of mental illness or another incapacity. This person can provide assistance either temporarily or permanently depending on the duration of the disability.

Guardianship. Guardianship can be granted for any person who is incapable of managing his or her personal affairs. A district court appoints an individual to act on behalf of the disabled person.

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

Preparing a Letter of Last Instructions

2006-09-18T15:50:00.000-04:00

A letter of last instructions is an informal document and one of the first things your family will need to locate after your death. You don’t need an attorney to prepare it. The purpose of this letter is to give your personal representative or family member information concerning important personal and financial matters. Although this letter does not carry the legal weight of a will, it is very important because it clarifies requests to be carried out upon your death and provides essential information, thereby relieving the surviving family members of needless worry and speculation. Your heirs will be grateful for this information.

When writing your letter of last instructions use the following list as a guide and provide in detail, such information as names, addresses and telephone numbers.

Notification

Prepare a list of people to notify of your death. Include family members, acquaintances, and organizations. Also include professionals: your accountant, attorney, broker, employer, executor, financial institutions, insurance agents, newspapers to receive obituary information, Social Security Office (include Social Security Number and location of Social Security card), and veterans administration if appropriate.

Funeral Arrangements

Describe the arrangements you have already made and those that your family must make.

Specify your wishes on the following: Organ donations, autopsy if requested, embalming, public viewing, burial type, and cost. Remains are they to be donated (detail of arrangements made), cremated (and the ashes: scattered, buried at, disposed of as follows [provide details]), or buried. Type of service and where, specify memorial gifts or flowers. If prearrangements have been made give details.

Include the number of death certificates that will be needed to collect insurance and other benefits usually 6 to 12.

Put together information the funeral director will need such as your full name, address, marital status, spouse’s name, date of birth, birthplace, father’s and mother’s name and birthplaces, name of next of kin (other than spouse), length of residence in state and in United States, military records/history, Social Security number, occupation, and life insurance information.

Personal Papers

In your letter give the location of all of your personal documents including your will; birth, baptismal, and marriage certificates; communion and confirmation certificates; diplomas; military papers; naturalization papers; and any other documents such as divorce or adoption papers.

Insurance

List all of your insurance policies by type (life, auto, home, veteran’s medical, and credit life), company name and address, policy number and insurance agent. Don’t forget insurance policies through your employer and/or financial institution. Include a description of any loans that you have taken out against a policy and not yet repaid. Also include the location of each policy.

Personal Effects

Provide a list of your personal effects and who is to receive each. Include such detail as to who is to receive your golf clubs, gold watch and clothes. It is better to have these in a letter than in the will.

Household Contents

List the contents of your house and name of owners, form of ownership and location of documents, inventory, and appraisals.

Automobiles

Tell where the registration and other papers for your automobiles and other titled property may be found.

Taxes

Include in your letter of last instructions the location of your income tax returns for the past five years.

Boxes

Be sure to give the location of your safe deposit box, a list of the contents, and where the key is located. Also provide the location and number of any post office boxes that you have. Tell where the key(s) or the combination of the box(s) may be found.

Credit Cards

List your credit cards by issuer and by card number. Request a copy of “Credit Card Safety Record” from your local county extension office to make this task easier or download from the web.

Homeowner Records

Give the location of the deed and mortgage papers on all property that you own. Provide information on taxes, liens, leases, etc.

Investments

Make a list of all stocks, bonds, and other securities by certificate number, issuers, and cost. Tell where the documents are located, identify stockbrokers with name, address, and telephone numbers.

Trusts

Make a list of all the trust that you have established. Give the name, address of the trustee, and identify the type and size of the trust.

Loans

List all loans and other accounts that you must repay. Give full information on terms, payments, collateral, and etc.

Bank Accounts

List all your checking and savings accounts by name and institution, address of the office where the account is located, the type of account and the account number. Include the location of canceled checks and statements.

Debts Owed You

Make a list of all the debts owed to you; include full name, address and telephone number of the debtor, payment terms, collateral, etc.

Survivor’s Benefits

List possible sources of benefits such as Social Security, veteran’s, employee, fraternal association, and credit life insurance. Include how much to expect from each source.

Other

Provide the location of receipts, warranties, and other miscellaneous papers. Explain any unusual provisions of the will, such as disinheritance of a child or forgiveness of a debt.

Write your letter clearly so that even a stranger could understand it. Also be sure that your letter does not contradict your will. If you are in doubt, check with your attorney. Since this letter describes your finances in detail give a copy of the letter to your personal representative. Be sure to sign and date your letter of last instructions and keep it separate from your will.

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

Getting Your Affairs In Order

2006-09-18T15:42:00.000-04:00

The old cliché that the only thing certain in life is death and taxes should give us cause to get our affairs in order. As we all know the death of a loved one is a time of confusion and emotional upheaval.

It is important that the next of kin know where to find records that will be needed when you are gone. By listing important records and their location you can ease the stress on family members.

Develop a list of important documents. By each document on the list indicate where the original of the document is stored. You may want to use a code to represent the location. For example, you may have the original copy of your birth certificate, military papers and your will in a safe deposit box at the local bank with a copy in your at home file system. You may have more than one copy of a document such as a living will. If you are older and spend time with children, friends or other relatives you might want to make sure they have copies of important documents, in case you forget to bring such copies with you when you visit.

This checklist of important documents (PDF) is a list of documents and suggested storage locations. Note it is important to have a list of your important documents. Some documents on this list may not apply to you. Complete your checklist and let the family members or member you have delegated to handle your affairs know where the checklist is located. You may want to leave a list with your attorney. Having a checklist not only will help your survivors, but it can also help you in the future to locate one of these documents for other purposes.

Your list should include important names, addresses, and telephone numbers that may help your survivors in dealing with your affairs. Be sure to list an entry for each person or place noted on Your Checklist of Important Documents.

Keep the original checklist with your will so that your personal representative or executor has access to it. Give a copy of your checklist to individuals who have copies of your important documents, such as your lawyer or personal representative. Keep copies of documents in your home file for easy access and others in a safe deposit box for security.

For more information contact your local county extension office.

Preparing for Disaster

2006-09-18T15:23:00.000-04:00

Disasters are a part of life. Whether the disaster is a hurricane, tornado or a terrorist attack preparation is the key to survival and to clean up after the event. Knowing where your family records and valuable documents are and being able to pick them up and take them with you, if you must evacuate, can save valuable time. For your “on the go” papers you will want to purchase a packet, folder, brief case or other carrying case for your documents. Place documents in this case in a secure but easily accessed location in your home. Then if you need to evacuate, important documents that need to go with you are in one place.

If you have access to scanner, you may want to scan your papers and documents to a computer disk and keep the copy in the carrying case and leave the original in the recommended storage place. You may also want to videotape the contents of your home to supplement your household inventory. If you use a software package to keep track of your finances you may want to keep a back-up copy with your “on the go” papers.

Important Papers and Documents Checklist

What are important papers?

Important papers are papers or documents that you will need sometime during your lifetime for a variety of reasons, such as a birth certificate; used for proof of age, citizenship, to obtain a drivers license, or to go on a cruise.

Other important papers include household inventory; adoption, marriage and death certificates; passports; deeds; leases; insurance policies; social security records; contracts; wills; trusts; and ownership papers.

Why should you be concerned about important papers?

In case of a disaster, it would be difficult to remember or identify exactly what you lost. Valuable time and money could be lost while you try to remember what possessions you owned or replace lost documents. Therefore it is much better to protect valuable papers than to replace them.

Who should keep up with important papers?

Even though all family members need to know where the family’s important papers are located, one person should handle the family’s record keeping system.

Where should they be located?

Essentially there are three places where important papers should be kept. Some should be kept on your person, some at home in a file system and some in a home safe or a safe deposit box.

What is a safe place?

It is generally accepted that a home safe or fireproof file should be able to withstand heat of 1700 degrees F for one hour.

Another option for a safe place is to rent a safe deposit box at a financial institution. The rental cost is relatively small when compared to the possible loss that could occur from a fire, hurricane, or other disaster. If you store income producing property such as stocks or bonds in the box, the rental fee maybe deductible from your federal income tax. If you choose to rent a safe deposit box, the following tips will help you get organized:

Inventory documents in the safe deposit box and keep the inventory in a safe place in your home. Keep the inventory current. Set aside a time each year to update your records. When you do your income taxes is a good time to do this task.
Check your homeowner’s insurance coverage to find out if it covers the contents of your safe deposit box. Also check the agreement you sign with the financial institution for any limitations on the protection.
Keep family members informed about the location of the box and where the keys are stored.
Even though it is not the practice in Florida to seal safe deposit boxes when the owner dies, it is still not a good idea to put burial lot deeds or burial information and wishes in the safe deposit box, because the box may not be opened until after the funeral.

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

disaster, hurricane, finances

When One Cannot Make Decisions

2006-09-18T15:13:00.000-04:00

Dr. Jo Turner, Professor, Family and Consumer Economics

Earlier articles focused on documents available to help plan how your personal and financial affairs are to be handled. This article will examine other important legal documents.

Power of Attorney

A power of attorney is used when you can still make your own decisions, but you want someone else to act on your behalf. It gives another individual legal authority to manage some or all of your personal affairs. A power of attorney is created in a signed document that states who is the principal agent for you. It also describes what powers are being given on your behalf. A power of attorney does not necessarily go to an attorney, but can be any trusted individual who can act on your behalf. In most states he or she does not have to reside in the same state as you.

You need to be specific about what decision-making power you grant with the power of attorney. The power of attorney maybe very limited. You may allow someone to make a deposit into or withdraw money from your bank account or represent you in the selling of your house. In that case you need to be careful to limit the power of attorney’s action. The power of attorney can be very general and broad to cover any activity that you could do for yourself. The power of attorney may end in several ways:

a) When you remove the power of attorney. (This can be done at any time.)

b) When the individual has completed the designated task;

c) If you become unable to make decisions, and/or

d) Upon your death.

Will

The main purpose of a will is to carry out your wishes in disbursing your property (assets) and to allow you to identify guardianship for a minor child, or incompetent child or adult. Without a will, state law will guide the distribution of assets among your relatives including the decision of who will be designated as the guardian for individuals who need such oversight.

Trust

A trust is a legal document in which legal title of property is held (home, investment, etc). A person or institution (trustee) then manages the property for the beneficiaries. This relieves the burden of managing finances from an individual who is inexperienced in handling finances. It allows the individual to decide how and when money will be disbursed from one generation to the next. A trust also allows the estate to avoid the risk of a will being contested. A trust can shorten the time it takes to distribute property to heirs as well as providing privacy for financial affairs. A personal trust is also advantageous in the event that you become incapacitated. In addition it avoids the process of going through probate court.

A trust will not suit everyone’s needs, and you should consult an attorney before deciding to set up a trust. You must weight the cost of setting up a trust verses the benefits a trust can provide you. In most states, the probate process is usually simple and relatively inexpensive for small estates.

Letter of Last Instructions

Upon your death, your loved ones will need information to collect death benefits and settle your estate. Last instructions should include your full name, birth date and place. It should contain the location of important records, such as marriage certificates, Social Security papers, life and other insurance policies. It also should contain the location of any other legal documents, including your will, deeds to property, automobile titles, and income tax records for the last seven years. In addition your letter of last instructions may include specific directions for funeral arrangements.

Accepting the Reality of Death

2006-09-15T09:18:00.000-04:00

Senior Highlights: Accepting the Reality of Your Death

Written by: Jo Turner, Professor, Family and Consumer Economics

Just about everyone I know has lost a family member or friend to death. There were five children in my mother’s family, three of them died in the first nine months of this year. Death is a reality for all of us. Even though you watch what you eat, exercises regularly and have annual checkups, this is still not enough to keep from becoming a statistic.

On any given day at least 130,000 people worldwide die. Some die of disease; others from starvation, murder, acts of war, accidents, or the easing away of the body after a life well lived. Some deaths are violent, others peaceful.

This is the first of a series of articles dealing with concerns of older Floridians that offer ideas and planning suggestions that will help make the older years golden and ease the pain of loosing a loved one.

Death may be just around the corner. Although we don’t like to think about it, each of us has a terminal condition. The meter runs. Some have five weeks, others decades. But every one of us has only so much time to live.

It is important that we come to terms with our own death. Unless we do so, we will have a limited ability to assist and understand those who are dying and those grieving the death of a loved one. Accepting your death will help to ease your fears and enable you to offer more peace and comfort to those struggling with death and loss.

Coming to terms with your own death also puts life in perspective. You see more clearly what’s important and what’s not. As a result, you are more likely to focus on values and goals close to your heart. Surprisingly, you may even find that you feel calmer and more alive.

Make peace with death. Take some time alone to ponder several or all of the following items. Go slowly, so that you can visit with the questions in a heartfelt way. Then discuss your responses with a good friend or family member.

If you discovered you were going to die later today, would you make any phone calls? To whom? What would you say?
Do you believe in God or another higher power, or a vision that lends purpose and meaning to your life?
Do you have a philosophy on life or why we exist?
Are you willing, given the limited time available to you, to say what’s on your mind? To do what you think is important? To stop hiding behind pretensions and facades and be the real you?
What things are most important to you? Does the way you use time and set priorities reflect your most deeply held values?
Are there changes you would like to make in the way you live routinely?
Can you imagine your own death and write an obituary that expresses how you would like to be remembered?
Do you sense in your most important relationships any unfinished business? A troubled relationship you’d like to heal? Love ones to which you might better express your feelings? Someone to whom you want to apologize or express thanks?
Does the thought of your own death frighten you, or are you at peace with the idea? What do you believe happens after death? What could you do to better prepare yourself for dying when the time comes?
What do you like best about your life? Consider how you are blessed. Ponder opportunities you might want to pursue.

Using Death to Enrich Life

Lawrence LeShan, author of Cancer as a Turning Point, believes each of us had a dream that burns brighter than all the rest. Some times we know this as a “passion.” “Those who have the courage to follow their heart live significantly healthier, richer lives,” LeShan says. He also suggestss the following three-part exercise as a way of exploring and perhaps living your dream or passion:

Imagine that six months from now, your outward life – the work you do, the place you live, the person or people you live with, the way you spend your time – can be exactly the way you want it. Describe what your ideal, outward life is like.

Think about your ideal inner life. Six months from now, what attitudes, gifts and abilities would you like to have acquired, developed or strengthened?

Consider your responses to the first two items. What efforts have you made recently to realize these things? What elements of your personality make such changes difficult? How might you overcome these internal obstacles?

Properly understood, death becomes an exquisite teacher, throwing life into sharp perspective and encouraging us to achieve our fullest potential. Death reminds us our time is limited, that it’s important not to put off those things we value most, that each moment is fresh and precious opportunity.

death, grief

Home Business Center

2006-07-08T14:00:00.000-04:00

It is never too late to set up a home business center or reorganize your current one. The time you spend now may save you tax dollars later. Tax rules require records to support the information given on your tax forms.

Handling your personal finances will be much easier if you have a well-equipped home business center. It does not have to be elaborate. It should be located in a convenient, comfortable area of the home, contain necessary equipment, supplies, papers, records and references, and have a good light.

You may be able to find space for a home business center in just about any room of your house. Ideally, you would have a special room—an office. But few homes today are large enough for such a luxury. Instead, consider a spare corner in the living room, dining room, a bedroom, kitchen or family room.

You’ll also need storage space for inactive records. That space might be in the attic, garage, basement, under a bed, or those hard-to-reach top closet shelves, under stairs or in the back of a deep closet.

You will need some equipment for your home business center such as: an ample, sturdy writing surface, comfortable chair, storage space for current records and papers, equipment and supplies.

This does not automatically mean you need a desk and file cabinet. You can use the dining room table as your writing surface and a nearby cabinet or chest for storage space. A desk and storage unit can be built into an unused closet. A plywood or hollow core door mounted on two, two-drawer file cabinets provide both storage and writing surface. Or you could use a new or remodeled standard office desk and file, or a combination desk and metal file unit.

You also will need some supplies such as pencils, erasers, tape, account books, ruler, scissors, deposit slips, pencil sharpener, stationery, paper clips, rubber bands, stamps, a dictionary and wastepaper basket.

Other supplies that you may want, but that are not essential include: stapler, spindle, paper weights, address book, book ends, typewriter, parcel post scale, parcel post labels, glue, sponge for moistening envelopes, stamps, letter opener, hole punch, adding machine and bulletin board.

In your home business center you will need storage space for your equipment and supplies, reference materials, important papers and documents, bills, unanswered mail, current receipts, and a place to store inactive files.

For more information on what to keep in your business center contact your local county Extension office for information on the "Planning Your Financial Future” workshop

Prepared by: Dr. Josephine Turner, CFP
Professor, Family, Youth and Consumer Economics
University of Florida

Disaster Tips

2006-07-07T13:19:00.000-04:00

Disasters are a part of life. Whether the disaster is a hurricane, tornado or a terrorist attack preparation is the key to survival and to clean up after the disaster. Knowing where your family’s records and valuable documents are and being able to pick them up and take with you, if you must evacuate, can save valuable time. For your “on the go” papers you will want to purchase a packet, folder, brief case or other carrying case for your documents. Place documents in this case in a secure but easily accessed location in your home. Then if you need to evacuate, important documents that need to go with you are in one place.

If you have access to a scanner, you may want to scan your papers, documents, and photographs to a computer disk. Keep the computer disk in the carrying case and leave the original in the recommended storage. You may also want to videotape the contents of your home to supplement your household inventory. If you use a software package to keep track of your finances keep a back-up copy with your “on the go” papers and update the back-up disk monthly.

“On the go” Important Papers and Documents Checklist

Important papers are papers or documents that you will need sometime during your lifetime for a variety of reasons, such as a birth certificate which is used for proof of age and or citizenship to obtain a drivers license or to go on a cruise. Other important papers include adoption, marriage and death certificates, passports, deeds, leases, insurance policies, Social Security records, contracts, wills, trusts, and ownership papers.

Why should you be concerned about important papers?

In case of a disaster, it would be difficult to remember or identify exactly what you lost. Valuable time and money could be lost while you try to remember what possessions you owned or while trying to replace lost documents. Therefore, it is much better to protect valuable papers than to replace them.

Papers to keep on your person (wallet or purse):

Personal identification: your name, address, telephone number and the name, address and telephone number of a relative or close friend.
Credit Cards
Medical Information: blood type, diseases (diabetes, heart disease, epilepsy, etc.)
Doctor’s name, address and telephone number
Social Security Card
Cash for emergencies
Driver’s license

“On the go papers” filed in special packet

Disk of family records including the following or a copy of the following:
Checking Account numbers and bank
List of savings and investments including CD’s, stocks, bonds, and mutual funds
Credit card safety record
Household inventory – videotape, paper copy, and or disk
List of Insurance policies with name of company, type of policy and policy number
Copy of your will and trust documents
Titles (house, car, other property)
Certificates or a copy of them: birth, marriage, divorce, death, and adoption
Passports
List of family advisors: accountant, attorney, banker, doctors, dentist, employer, financial adviser, insurance agents, religious leader, banker
Bank account numbers
Educational records
Investment records
Military records
Debt Instruments
Other special papers that would be difficult or impossible to replace if lost.
_____________________________
_____________________________

For more assistance with family records see publications FCS 5209, FCS 7103, FCS 7018, and FCS 7027.

Prepared by: Dr. Josephine Turner, CFP
Professor, Family Youth and Consumer Economics
University of Florida

The Plastic Dilemma

2006-07-06T16:17:00.000-04:00

Credit Series: The Plastic Dilemma

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

How many credit cards do you carry in your wallet or purse? According to a recent American Bankers Survey 8 out of 10 U. S. households own one or more credit cards with the average family owning nine credit cards. Bank, stores, airlines, oil companies and travel and entertainment companies issue credit cards. Only one-third of card users pay off their balances in full each month.

New on the market is the "Smart Card" which is a combination of a credit card, driver's license, health care ID, telephone card, etc. At the University of Florida students are using a smart card to pay tuition, borrow books from the library, rent videos, buy meals in the cafeteria, and gain access to dormitories and online study groups.

The credit card and smart card are different from the debit card. The debit card electronically subtracts from your account at the moment you buy goods and services.

The following tips will help you protect your cards (debit and credit) from theft or fraud.

Never leave your cards unprotected on a counter, in a hotel room or in a car glove compartment. A card lying around is equal to a $50 bill or a signed $50 check.
Wait to present your card until the sale or service has been completed. And always be sure that it is your card that is returned. Read the receipt slip carefully before you sign. Be sure the total amount equal what you actually purchased. Never sign an incomplete or blank sales slip.
If an error was made on a sales slip, be sure it was destroyed before you sign another.
Save the receipt to compare with your monthly statement. When the statement comes in, go over it carefully with the receipts in front of you. Are there charges you did not make? Is there a billing error? If there is, follow the directions for a contested bill and immediately contact the card issuer explaining what you believe to be wrong.
When you pay your monthly bill, write your card account number on the check. Otherwise, your check could be credited to the wrong account.
Keep a list of all your card account numbers in a safe place at home along with the phone numbers of the issuers. Periodically check your cards to be sure they are where they should be. When carrying your cards, keep them separate from your personal identifications if possible.
If you move, give the issuer your new address promptly. If you don't, renewal cards could be sent to the wrong address and could be lost or stolen.
Always notify the card issuer if a renewal or new card doesn't come in a reasonable time.
If you lose a card or if it is stolen, report it to the issuer by telephone. Follow immediately with a written notice. Keep a copy of the notice for yourself. Include your card number and when and where you think that you lost it. Should you find your missing card later, promptly report this to your issuer. Ask whether you could continue to use it or destroy it and wait on a new card.

For more information contact your local county Extension office.

Reference: Kapoor, Dlabay, Hughes. Personal Finance (6^th edition) 2001

In a Bind...Which Bills Do You Pay First?

2006-07-06T16:12:00.000-04:00

Credit Series: In a Bind...Which Bills Do You Pay First?

Dr. Jo Turner, Professor, Family and Consumer Economics

Many people find themselves in a bind from time to time. The way they pay their bills will have an impact on their credit report and could harm them for years. Even after the debts have been paid a poor credit rating could prevent someone from buying a car, renting an apartment or even getting a job.

If you find your self in a financial bind be very careful to avoid being 90 days or more late on any bill. Some creditors write accounts off as bad debts and report your failure to pay to the credit bureau. This can make it difficult to get credit in the future. If you are juggling expenses, the list below should help you prioritize payments:

Child Support. It is critical to make child support payments. By law, credit bureaus must report any information received about overdue child support, as long as it's verified by the proper agency and is not more than seven years old. A bad credit rating may be the least of your worries. Law enforcement agencies can intercept your tax refund, garnish your wages, put a lien on your property, and suspend your driver's license. If you can't pay because of a financial crisis, you should go to court and see if you can get payments reduced.

Mortgage. If you are more than 90 days late on your house payments, it will probably end up on your record. Mortgages also tend to have hefty late-payment fees, and if you miss two or more, your lender may start foreclosure proceedings.

Car Loans. You should not fall behind on car payments. In some states, your car can be repossessed after only one missed payment. If your car is worth more than you owe, you may be able to refinance your loan with lower monthly payments. If not, your lender may agree to a temporary schedule of reduced payments. Most of the major auto financing companies let a borrower with a good payment history and a reasonable repayment plan either skip a few payments or refinance. Before calling to discuss alternatives with the lender, draw up a plan for getting back on schedule.

Taxes. The Internal Revenue Service (IRS) can be rough if you don't pay on time. If you are notified that you owe past-due taxes, make every effort to pay as quickly as possible. If you can't pay, contact the IRS to arrange a repayment schedule. If you can't pay because of a genuine hardship such as major medical bills or lengthy unemployment, you can petition the IRS with an "Offer in Compromise" by which you repay only a portion of the total back taxes owed. You'll need to seek the service of an accountant.

Bank Credit Cards. MasterCard and VISA cards are valuable references on your credit report. Pay them on time, even if you only make the minimum payment. Once you are able to pay all of your bills as they come due, make a plan to pay off the entire balances on all of your credit cards. It is very costly to carry over balances from month to month and can lead to serious problems

Department Store Cards. Most will accept lower payments for a few months.

Utilities. Utility companies may be willing to work out a modified payment schedule for a short period, if you can't pay on time. But you may have to put up larger security deposits for future services.

Student Loans. Federal student loans may be deferred if you are having financial problems. If your loan is deferred, you won't be required to make payments, but you can't qualify for deferment once your loan is in default, so don't wait until you are behind in payments to apply. Continue making payments until your request is approved.

Medical Bills. Most medical bills aren't reported to credit bureaus until they are sent to collection agencies. You can probably work out a payment schedule with the doctor or hospital. Just be sure to confirm any agreements in writing and ask for confirmation that reduced payments won't be reported to the credit bureau.

Small Bills. Set aside small bills, such as magazine subscriptions and book clubs, but be sure to contact the creditor if you can't pay the bills now.

Until you can pay all of your bills on time, STOP using credit of any kind. Remove your credit cards from your wallet and cut them up. Also STOP trying to borrow yourself out of debt.

Look for additional income by getting a second job, or a job with more pay. Use your hobbies and skills to produce extra income. Sell some items you no longer need such as that second or third car and apply this money to reducing your debts.

If you are thinking of consolidating your debts, remember you will have smaller payments over a longer time period and it is usually more costly. With consolidated debts people often think they have more money and soon find themselves back in the same situation again. You may want to consider a home equity loan. If, however, you get a home equity loan or a consolidated loan, pledge to yourself that you will not use credit in any form until you have completely paid of the loan. If you get into debt trouble again you could lose your house.

Last but not least, think about the problem you are having paying bills and use this as an opportunity to learn from your mistakes. Resolve to make some changes in the ways that you handle money to see that such problems never happen again.

Credit Rating

2006-07-06T16:07:00.000-04:00

Credit Management Series: Credit Rating

Written By: Dr. Jo Turner, Professor, Family and Consumer Economics

A good credit rating is a valuable asset in today's credit oriented society. If you have a good credit rating it is worth protecting. You protect your credit rating by the way you manage your money and your debts. Use credit to increase your assets. Make payments according to the terms in the credit contract you signed.

Your credit rating begins when you first apply for credit. The prospective lender requests information about you on the credit application. This information is used to predict your credit behavior. The loan officer examines the information on the credit application for three items, usually known as the three C's of credit.

Character -- Your reputation for honesty and reliability and your record of responsibility.
Capital -- Things of monetary value that you own.
Capacity -- The income you now have and what can be expected in the future with which to pay for the credit you get.

Typical questions which provide the loan officer with information needed to make the decision on your loan application include: Where are you employed? How long have you worked there? How much is your take-home pay from all sources? Where do you live? How long have you lived there? Do you own or rent? Do you have a checking or saving account? Where? What are your present debts, including all loans and charge accounts?

Prior to acting on the application, the loan officer will conduct a credit investigation. The credit investigation may be limited to information available from the local credit bureau or the investigation could be more extensive depending upon the amount and purpose of the loan and the information available from the credit bureau.

The credit bureau serves as a clearinghouse. They develop a credit file on people who use credit. They collect, store, and sell information. They do not decide your credit rating or whether you will be able to get credit. The loan officer decided to grant or deny credit based on the results of the credit investigation.

Your credit record, good or bad, follows you wherever you go. You can't hide from it. Your credit record is a history of how you use credit. It includes the information that you have given about yourself on credit applications. It also includes information your creditors have given the credit bureau about you. Creditors give the credit bureau such information as how often you use credit, what you use credit for, and the speed with which you pay your bills.

When you apply for credit, answer all questions honestly. If you neglect to include some unfavorable information, it most likely will come out during the investigation and lessen your chances of obtaining credit. If there is or has been a problem, explain the reason for the problem.

If you find that you can't pay your bills as scheduled, contact the lender before the accounts are declared delinquent. You and the creditor can usually work out an agreement that will suit you both. Creditors are not interested in punishing you for your misfortune. They only want reasonable assurance that their money will be repaid.

If you are refused credit, ask the loan officer for an explanation. If you are refused credit due to some incorrect information in your credit file, visit your local credit bureau. They will be willing to get all the facts straightened out. If it is not straightened out to your satisfaction, you have the right to put your version of the story within limits in your credit record.

A good credit rating is something everyone should have, if for no other reason than to make it possible to get credit in an emergency. For more information on credit contact your local county Extension office.

money, credit rating, credit

Credit Rating

2006-07-06T14:46:00.000-04:00

Credit Management Series: Credit Rating

Written By: Dr. Jo Turner, Professor, Family and Consumer Economics

Character -- Your reputation for honesty and reliability and your record of responsibility.
Capital -- Things of monetary value that you own.
Capacity -- The income you now have and what can be expected in the future with which to pay for the credit you get.

money, credit rating, credit

Credit Card Insurance: Do You Need It?

2006-07-06T13:43:00.000-04:00

Credit Series: Credit Card Insurance: Do You Need It?
Dr. Jo Turner, Professor, Family and Consumer Economics

Do you own a credit card? Most Americans do. You might even feel a need to protect yourself and your credit cards against credit card crimes.

You may be contacted by an agency offering credit card protection insurance. You may already have been contacted by one of these firms. Before you sign up for credit card protection, know what you are buying.

Credit card protection firms -- for a fee ranging from $15 to $50 per year -- generally offer to keep a record of the cardholder's credit card account numbers, report lost or stolen cards, arrange for replacements, and notify card issuers of the customer's address change. Some services also provide stranded travelers with emergency cash advances and airplane tickets.

Many people think they need a protection service for insurance against having to pay for purchases charged to their account if their card is lost or stolen.

These services may sound inviting, until you realize what your rights are as a holder of a credit card.

Your credit card losses are limited by law to $50 per card if you immediately report the card lost or stolen. Some card issuers will not press the victim for this $50 per card loss if the victim is willing to file charges against the thief, if caught.

By paying for credit card protection, you're unlikely to receive services that you do not already have by owing a credit card, or services that you cannot easily provide yourself -- with no middleman cost. You may be doing yourself a disservice by buying credit card protection, because of the likely time-delays in agency reporting.

Protect yourself from unauthorized charges against your credit cards by keeping a record of each credit card number. It is as simple as a telephone call and a follow-up letter to report a lost or stolen card. It may be more important that you do the reporting yourself to eliminate the risk of being held liable for unmade purchases. A protection agency may not make a report to the issuer for several days to a week after you report it to them.

As for the other services offered by an agency, you already receive a form to be completed for an address change along with your charge card bill each month. And many credit cards provide emergency cash advances.

So think carefully before you decide you really need additional credit insurance. For more information on credit contact your local county Extension office.

money, credit, insurance

Cash or Credit

2006-07-06T12:12:00.000-04:00

Credit Series: Cash or Credit

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

To pay cash or use credit is a choice consumers have to make each time they buy. There are many good points and bad points to using credit.

Credit costs money. The consumer pays extra for items when buying because of finance charges. Credit can be bad also because the consumer is spending future income. They are living on money they expect to have in the future. What happens if they lose their job or become ill?

Another bad point to credit is that consumers may overspend. This is easy to do when bills don't come for a month.

Good points of credit include tracking spending is easier, getting goods and services before paying for them, and using credit to take care of emergencies. Another good point is credit eliminates the consumer's need to carry large amounts of cash.

Before deciding to use credit, consumers should figure out how much they can afford to repay each month. They must remember they are agreeing to pay back the money spent and must make monthly payments.

Before using credit consumers should ask themselves the following questions:

Do I really need the item, or can it wait?
What will be the extra cost of using credit?
Is having it now worth the extra costs?
Can I make the monthly payments as scheduled?
Will I have to give up something else more important in order to use credit now? And,
Will I be able to handle an emergency if one comes up?

Instead of using credit and making minimum monthly payments, consumers would be wise to save money and pay cash for items later. By saving money consumers can earn interest and will not have to pay finance charges.

money, credit

Letter of Last Instructions

2006-07-06T11:38:00.000-04:00

Crisis Management Series
Dr. Jo Turner, Professor, Family and Consumer Economics

A letter of last instructions is an informal document and one of the first things your family will need to locate after your death. You don't need an attorney to prepare it. The purpose of this letter is to give your personal representative or family member information concerning important personal and financial matters. Although this letter does not carry the legal weight of a will, it is very important because it clarifies requests to be carried out upon your death and provides essential information, thereby relieving the surviving family members of needless worry and speculation. Your heirs will be grateful for this information.

When writing your letter of last instructions use the following list as a guide and provide in detail, such information as names, addresses and telephone numbers.

Notification

Prepare a list of people to notify of your death. Include family members, acquaintances, and organizations. Also include professionals, your accountant, attorney, broker, employer, executor, financial institutions, insurance agents, newspapers to receive obituary information, Social Security Office (include Social Security Number and location of Social Security card), and Veterans Administration if appropriate.

Funeral Arrangements

Describe the arrangements you have already made and those that your family must make.
Specify your wishes on the following: Organ donations, autopsy if requested, embalming, public viewing, burial type, cost. Remains are they to be donated (detail of arrangements made), cremated (and the ashes: scattered, buried at, disposed of as follows [provide details]), or buried. Type of service and where, specify memorial gifts or flowers. If prearrangements have been made give details.
Include the number of death certificates that will be needed to collect insurance and other benefits usually 6 to 12.
Put together information the funeral director will need such as your full name, address, marital status, spouse's name, date of birth, birthplace, father's and mother's name and birthplaces, name of next of kin (other than spouse), length of residence in state and in United States, military records/history, Social Security number, occupation, and life insurance information.

Personal Papers

Insurance

List all of your insurance policies by type (life, auto, home, veteran's medical, credit life), company name and address, policy number and insurance agent. Include a description of any loans that you have taken out against a policy and not yet repaid. Also include the location of each policy.

Personal Effects

Provide a list of your personal effects and who is to receive each. Include such detail as to who is to receive your golf clubs, gold watch and clothes.

Household Contents

List the contents of your house and name of owners, form of ownership and location of documents, inventory, and appraisals.

Automobiles

Tell where the registration and other papers for your automobiles and other titled property may be found.

Taxes

Include in your letter of last instructions the location of your income tax returns for the past five years.

Boxes

Credit Cards

List your credit cards by issuer and by card number. Request a copy of "Credit Card Safety Record" from your local county Extension office to make this task easier.

Homeowner Records

Give the location of the deed and mortgage papers on all property that you own. Provide information on taxes, liens, leases, etc.

Investments

Make a list of all stocks, bonds, and other securities by certificate number, issuers, and cost. Tell where the documents are located and identify stockbrokers with name, address and telephone numbers.

Trusts

Make a list of all the trust that you have established. Give the name and address of the trustee and identify the type and size of the trust.

Loans

List all loans and other accounts that you must repay. Give full information on terms, payments, collateral, and etc.

Bank Accounts

Debts Owed You

Make a list of all the debts owed to you; include full name, address and telephone number of the debtor, payment terms, collateral, etc.

Survivor's Benefits

List possible sources of benefits such as Social Security, veteran’s, employee, fraternal association, and credit life insurance. Include how much to expect from each source.

Other

Provide the location of receipts, warranties, and other miscellaneous papers. Explain any unusual provisions of the will, such as disinheritance of a child or forgiveness of a debt.

Write your letter clearly so that even a stranger could understand it. Also be sure that your letter does not contradict your will. If you are in doubt check with your attorney. Since this letter describes your finances in detail give a copy of the letter to your personal representative and keep the original and copies in a safe place. Be sure to sign and date your letter of last instructions and keep it separate from your will.

money, financial, wills, funerals, finances, funeral arrangements

Legal Matters

2006-07-05T13:35:00.000-04:00

Crisis Management Series
Legal Matters
Dr. Jo Turner, Professor, Family and Consumer Economics

This article will continue to examine legal documents available to help plan how your personal and financial affairs are to be handled when you are unable to take care of them.

The Durable Power of Attorney

The durable power of attorney is a more comprehensive document since it can give an individual or individuals decision-making power when your are disabled or unavailable to handle your affairs. It can cover healthcare decisions and personal matters, but it usually covers financial decisions if you become incapacitated. You might feel more comfortable having someone else manage your financial decisions because of his/her expertise. On the other hand, you might want to grant durable power of attorney to the same person you name as your healthcare surrogate. Your doctor and attorney can assist you in specifying which medical procedures and treatments you want and which you do not want. It is wise to do this now when you are young in case of an accident or other unforeseeable tragic event.

Patient Self-Determination Act

This legislation has been passed to inform an individual of his/her rights to exercise more control over his/her life. Under this act, healthcare facilities must inform all adult patients of their rights to create an advance directive, such as a living will, designation of a healthcare surrogate or durable power of attorney; explain the facility's policies for carrying out patient decisions; and provide education for staff and the community about advance directives, including when and how they may be used. This law, although very important for the terminally ill, applies to any person using the healthcare system. The law states that hospitals, hospices, nursing homes, and all other healthcare facilities that receive Medicare funding must provide patients with written information regarding their rights to accept or refuse any medical treatment.

Representatives You Choose

Substitute Payee. A substitute payee is typically used only for the purpose of providing you with help in cashing and writing checks. Your bank will provide you with the appropriate forms for designating a substitute payee.

Representative Payee. A representative payee is used in a government benefit program such as Social Security. The person asking to be named as representative payee must file an application and must provide the Social Security Administration with evidence of the relationship to the person to whom the checks are made out. The representative payee must use the payments for taking care of the Social Security recipient and must submit a written report on how the funds are actually spent.

Court Appointed Representatives

In some cases, a court will appoint a representative for an individual who can no longer handle his/her affairs and who have not made arrangements for executing his/her wishes. For this to happen, the court must conduct a trial by jury to determine the individual's ability to manage personal or financial affairs. While the specific terms of these positions vary from state to state, they are found nationwide. If a person is judged to be incapable of managing his or her affairs, the court may appoint another person to one or both of the following positions:

Guardianship. Guardianship can be granted for any person who is incapable of managing his or her personal affairs. A district court appoints an individual to act on behalf of the disabled person.

power of attorney, patient self-determination , representatives

Important Legal Documents-When One Cannot Make Decisions

2006-07-05T13:13:00.000-04:00

Crisis Management Series
When One Can Not Make Decisions
Dr. Jo Turner, Professor, Family and Consumer Economics

Power of Attorney

A power of attorney is used when you can still make your own decisions, but you want someone else to act on your behalf. It gives another individual legal authority to manage some or all of your personal affairs. A power of attorney is created in a signed document that states who is the principal agent for you. It also describes what powers are being given on your behalf. A power of attorney does not necessarily go to an attorney, but can be any trusted individual who can act on your behalf. He or she does not have to reside in the same state as you.

You need to be specific about what decision-making power you grant with the power of attorney. The power of attorney maybe very limited. You may allow someone to make a deposit into or withdraw money from your bank account or represent you in the selling of your house. In that case you need to be careful to limit the power of attorney's action. The power of attorney can be very general and broad to cover any activity that you could do for yourself. The power of attorney may end in several ways:

When you remove the power of attorney. (This can be done at any time.)
When the individual has completed the designated task;
If you become unable to make decisions, and/or
Upon your death.

Will

Trust

A trust will not suit everyone's needs, and you should consult an attorney before deciding to set up a trust. You must weigh the cost of setting up a trust verses the benefits a trust can provide you. In most states, the probate process is usually simple and relatively inexpensive for small estates.

Letter of Last Instructions

power of attorney, will, letter of last instructions, trust, money, insurance

Plan Ahead for Incapacity

2006-07-05T12:52:00.000-04:00

Crisis Management Series
Plan Ahead for Incapacity
Dr. Jo Turner, Professor, Family and Consumer Economics

At some point in life, many people will need help in managing their affairs or in taking care of themselves. This can happen at any age and for many different reasons. It's most likely to happen, as you grow older, especially in the years prior to death -- a time often characterized by increasing mental and physical decline. Many individuals are disabled six months or longer before they die and may be unable to make their own decisions. A variety of legal documents are available to assist during these periods; some provide temporary help, others offer more permanent assistance. Planning ahead enables you to make important decisions about how your personal and financial affairs will be handled if you are unable to manage.

There are numerous issues to consider including:

What end-of-life decisions might you or your family members face?
How can you best prepare for the potential of mental or physical incapacity?
What planning tools, including the creation of legal documents are available?
Older people and their families also need to consider a variety of choices such as long-term care, guardianship designation, power of attorney, and dispersal of property and household items.
Who will execute the last will and testament?
Likewise, choices need to be made regarding heroic measures to prolong life and the possibility of organ donations.

These are not pleasant issues but when possible, the family needs to plan ahead. Discuss the issues with your family or persons you trust. Early discussion helps to avoid decisions that are in opposition to one's lifestyle and wishes, as well as decisions that are unacceptable to family members or significant others.

Legal documents such as advanced directives are available to enable you to exercise more control over your life.

Advanced Directives

Living Will

A living will is a document that assists an individual in making his or her wishes known regarding life-prolonging treatment and "artificially provided nutrition and hydration." Generally, a living will is quite limited in applications. A living will allows individuals to prepare in advance for the time that they can no longer actively participate in making decisions about their healthcare. Typically, you and two other people must sign a living will; each must be at least 18 years old, of sound mind, and of no relation to you. They cannot be your doctor or employed by your doctor. They also cannot be employed by the healthcare facility where you are a patient or anyone responsible for paying your medical bills.

Some states will accept a notarized living will. Be sure to keep at least one copy in a safe, easily accessible place. You may wish to carry a copy with you when you travel. Your wishes may not be honored in another state or country if they conflict with existing laws of that state or county. The rule of the state where the treatment occurs controls not the state where the living will was signed. Nevertheless, even if the living will is not honored in the treatment state, it is valuable evidence of the patient's wishes. It's also a good idea to provide a copy of your living will to your physician for your medical record and to relatives with whom you might live or visit.

Healthcare Surrogate

At minimum, both of a living will and health care surrogate should be executed at the same time. Generally speaking, a living will merely states your desires about life prolonging treatment when you are considered terminal, while a health care surrogate makes medical treatment decisions for you if you are unable to make them for yourself.

Organ Donations

Some individuals simply do not make their wishes to donate their organs known. Others may believe their religion does not allow for organ donations, and cite a religious reason for not electing to donate their organs. Most religions permit their followers to donate their organs to allow another's life to be spared. If you have questions on these issues, check with your religious leaders. If you decide to donate your organs upon your death, you need to make your wishes known to others and note this on the back of your driver's license, following the proper procedures for your state.

money, bills, advance directives, wills, organ donations, healthcare surrogate

Consumer Tips For Dealing With Disaster

2006-07-05T11:39:00.000-04:00

Crisis Management Series
Consumer Tips For Dealing With Disaster
Dr. Jo Turner, Professor, Family and Consumer Economics

When disaster occurs the following 11 tips can help you keep your balance and protect your future.

Tip 1: Don't Panic! Stay in control.

Remember you have survived other disasters and you probably will also survive this one. As calmly as possible assess the situation and take appropriate action.

Tip 2: Practice prudent consumer behavior.

Use good judgment in making decisions. Many people lose money by turning their investments into cash in a panic and buying high-priced "survival" and protection items. Panic buying can be costly. Before buying items such as a gas mask, a year's supply of food, or a gun in response to a specific risk or emergency ask yourself, "Just when, where and how will I use this purchase? How will it help me? And how will I store it?"

Tip 3: Avoid con artist and gougers.

During hurricanes or tornadoes the price of items from ice to generators may more than triple. Watch out for these opportunists and choose not to be a victim.

Tip 4: Be a good citizen.

Report price-gouging, con artists, and anyone who behaves in a suspect manner to the appropriate authority, such as: local police, Attorney General's office or Department of Agriculture and Consumer Services.

Tip 5: Manage credit wisely.

Credit is one way many Floridians manage emergencies. Keep credit card and debt balances below the maximum. By keeping the limit below the maximum, you will have a temporary emergency fund available in the short term.

Tip 6: Know where your important papers are located.

A well-ordered home filing system is important in responding to disasters. An updated household inventory is important in a speedy adjustment to property loss. The whereabouts of insurance policies will save time and stress in dealing with any type of covered loss resulting from a disaster.

It is also vital to know where locate contracts, bank and investment information. Knowing where family members are and how to locate them is important; as well as knowing who and where family advisors are and how to locate them. If you need more information on what important papers to keep, where to keep them and how long to keep them contact your local county Extension agent for information.

Tip 7: Keep gasoline in your car.

This is standard procedure for families in remote areas of the state. Keep at least 1/4 of a tank of gasoline at all times.

Tip 8: Review and update insurance policies.

It is a good practice to review your insurance policies on a regular basis. If your family situation has changed, review your coverage for life, health, and disability insurance. Do you need more or less insurance? Do you need to change beneficiaries? Check property insurance to ensure that your property is adequately covered. If you have an old car you may want to reduce coverage. Yet your "old" house may have increased in value and need more insurance.

Tip 9: Review and update your will and other property transfer documents.

Data show that only one out of four have a personal will. Remember if you don't make your wishes known about the disposition of your property, through properly executed transfer documents, the state has specified what will happen to your property. Many people will not have a problem with the first line to inherit but the problem comes with the second and third line to inherit.

Tip 10: Review your living will.

If you do not have one you may want to consider writing one. A living will is a written statement indicating that the signer does or does not wish extraordinary medical measures to be taken if he or she has no reasonable expectation of recovery. Living wills must conform precisely to laws in the state of the signer's residence. Hospitals routinely ask patients if they have a living will or if they want to write one.

Tip 11: Implement a standing plan.

Develop and use a "standing plan" for your actions. A standing plan is one that you and your family have developed in the event of disasters. The plan should include:

What to do to immediately to get to safety
What to take with you if you have time to evacuate (papers, clothes, food, etc.)
What follow-up actions you would implement
Where you and your will family meet if you become separated (school, church, police department, etc.)

hurricanes, disaster preparedness, money