Put Your Wishes in Writing

Many people think of terms like “power of attorney” and “estate planning” only when they near the end of their working life. But there are great reasons for having your affairs in order — even when you’re young, healthy and decades away from retirement.

Estate planning can save you and your family money. In a crisis, it can also save time, avoid confusion and guarantee that your wishes are carried out and your interests protected, even if you are unable to make decisions for yourself.

 

What Is an Estate Plan?

Your “estate” is the total of all your cash and property — including your home, investments, automobiles and other assets. An “estate plan” is a broad term for how you prepare for your assets to be distributed or disposed of after you pass away.

A power of attorney and a will are common in many estate plans.

 

Power of Attorney

Granting someone “power of attorney” allows you to identify someone you trust to make financial decisions for you if you become incapacitated or if you need help. You decide everything, from when it can take effect to what kinds of decisions that person can make on your behalf.

To grant authority to handle your TCDRS benefits, fill out the Durable Power of Attorney (TCDRS-67) form.

 

Will

A will is a legal document describing how you want your estate distributed after you pass away. However, a Will does not impact who receives your TCDRS benefit — that is determined by your beneficiary designation.

 

Review Your Estate Plan Regularly

Once you have all your documents and arrangements in place, you should still review them every year or two, especially if you experience life-changing events such as marriage, divorce or the birth of a child (or grandchild). Taking charge of these issues can save you and your loved ones a lot of stress and hardship.

Personal Finance Retirement Prep