People often don’t know where to start with their estate planning, so I always encourage beginning with the very basics. These are steps you can take to protect your interests while you are alive but in an incapacitated condition where you cannot voice or make decisions on your own behalf: They are:

• an advance directive, also known as a Living Will. This document outlines what type of medical care you do and do not want to have. It is a guide for medical providers and takes the emotional burden of decision-making off your family;

• a durable medical power of attorney. This allows you to name a person to have legal authority to represent your wishes for your medical care and to act on your behalf;

• a durable financial power of attorney. This gives a person legal authority to take care of your finances while you are incapacitated, such as paying bills, filing tax returns, signing legal documents, and so on.

Anything you own of value, such as cash or something that can be converted to cash, is considered an asset. A beneficiary is a person you would like to receive that asset after you’re gone. Many assets allow you to name a beneficiary so the asset will transfer to them automatically with no involvement from a probate court:

● Have a bank account? You can name a “payable on death” beneficiary.

● Have a 401(k) or other type of retirement account? Definitely add one here.

● Investment accounts, savings bonds, insurance policies? Yep.

●Cars, boats, planes, floating homes, motorhomes, manufactured homes, and real property? Not in all states but some will allow a “transfer on death” beneficiary.

Bottom line: Take advantage of this wherever you can and, if there’s a minor child you want to receive the asset, well, they can’t be named but a person named as their custodian can. 

In order for a will to be legally recognized, a court has to validate that it meets all the many requirements of the state where you live. This is called a valid will. If it does not, the will is considered invalid, and so is ignored, as if it didn’t exist. 

● Moved to a new state? Your existing will might need to be updated.

● Hand wrote your will? Not all states will recognize it as valid no matter how detailed you are.

● Typed your will, used a software program or fill-in forms? Prime for being thrown out if you left areas blank, crossed areas out, added handwritten notations, didn’t include a date, didn’t have disinterested witnesses sign, and so on.

● Want to leave out a spouse? This can almost guarantee your will will be invalid.

Bottom line: You get the idea. Always get an attorney review to make sure your will meets the legal requirements of the state where you live.

I personally know the father of a friend who avoided a “grandpa I need money” scam by a very alert bank teller. Scams happen, especially to the elderly it seems (though the baby boomer daughter of this gentleman was saved from an IRS “pay through gift cards” scam by an astute retail clerk. Clearly, no generation is safe.). You can’t protect every situation, but there is one way that can help:

The Consumer Financial Protection Bureau recommends adding a trusted contact person to brokerage and financial accounts.

This doesn’t give the person access to the account holder’s money. It simply gives the financial institute someone to contact if they feel a potential scam is in play or they’re unable to reach the account holder when an important issue on the account arises.

Bottom line: Anyone can be a victim of someone trying to get their money, but especially as they get older and perhaps are easily confused. Adding this contact person could mean the difference between having a life’s savings or having nothing at all.