Tag Archives: POA

Back to Basics Fun Educational Review – Part Six – Estate Planning … No Fear of the Fancy Terminology!

Welcome back to Part Six of our “Back to Basics” series .. we hope you’ve enjoyed the First Five which started with all about “The Emergency Fund” in Part 1Part 2 being “Protection Planning” and Part 3 discussing All about Debt Planning or “The Good the Bad and the Ugly of Debt”, Part 4 Retirement PlanningPart Five, Back to Basics Education Planning and now “Estate Planning!”

As a reminder this is a high level Financial Planning Education like overview, starting with the basics of and we will continue into advanced topics in order of Planning Importance.  

So who needs Estate Planning?

In a word, everyone should have an Estate Plan and Estate Documents.

As your family complexity increases, the need for Estate Planning documents rises. Young families just starting out with no dependents that may be moving to another state in the very near future can have a brief hall pass as each state has its own unique rules, but the clock is ticking.

Couples with a dependent, you need an Estate plan!

Even with simple family situations, as we get older, statistically we get closer to utilizing these documents, thereby increasing our need.

Any further complexities, as an example multiple assets, multiple dependents, some type of unique family situation, you absolutely must have a good Estate Plan and Estate Planning documents.

Why do we need estate plan documents?

Without them you are leaving your wishes recklessly in the hands of the public domain via the court system for a prolonged timeframe and an unfamiliar person, (a judge), to try and guesstimate what your wishes would have been, using the general rules of the state you reside! Not good.

OK enough lecturing on who needs them and why, let’s take the complexity out of Estate Planning and make it very easy for you to prepare and complete the documents.

Rather than go into the complexities of all of the documents, keeping with our “Back to Basics” theme, we are going to go into what you need to think about to easily complete all of your Estate Documents. Don’t worry about the fancy legal and financial terms, if you can answer the following few questions, your Estate Documents can be easily completed …

So here we go!

If something happens to one of the couple, the general rule is the other is the primary default, hence the following terminology for decisions.

If something happens to both you and your spouse at the same time, Who will be in charge of administrating your estate and who is the backup person? This is called your executor.

If something happens to both you and your spouse, who will take care of your minor children? This is called guardian.

Assuming you and your spouse once again are gone, who will take care of the financial stuff for your minor children? This is called your Trustee and you’ll need at least one back up.

At what age do you want you’re now grown children, once again assuming you and your spouse are gone, to distribute financial assets? This is the terminal clauses of your trust, a very common age is 1/3 at age 25, 30 and 35 but parameters can vary widely. Trusts cannot be perpetual and therefore must eventually end.

Lastly, a very unlikely scenario, but one that should be answered, if everyone in your immediate family… you, your spouse, and minor children should perish, think of where you would like your assets to be distributed i.e. beneficiaries.

Other Documents

There are a few simple peripheral documents such as Power of Attorney (POA) and healthcare power of attorney that will need decisions, but we find if you have answered the above questions you likely already have a person that fits each of these roles.

One planning tip: Try and match the personality of your person to the role, i.e. the caring family person may be best fit for guardian, a good financial person trustee, a close relative with a very pragmatic attitude and calm and nature, your executor… as this is the most emotional role and comes first.

That’s it, each of those answers fit into a fancy legal term and your legal professional will know exactly how to formulate the appropriate language for your specific state. With the aforementioned answers your Estate Planning documents can be easily created.

Over the years we found many people fearful of the complexity of the documents, when in reality the majority of the problems are simply answering the questions above.

You are now armed with how to easily complete your Estate Documents, why you need them, how to be ready and how to easily complete!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Estate Planning – Total Document Summary – Part 1

This is another redo of an article/post of several years back. We reference this so much we thought it a good idea to present it again, especially to those who may not have seen it originally – As a reminder, we like all of your Estate Planning Documents to have a virtual home in your Vault for easy, safe continued access! Ok – Let’s get going – again!

The term “Estate Planning” gets thrown around frequently, sometimes by us. Recently we tossed the term out and upon finding we did not have an article with a total summary of “Estate Planning Docs” an article was born.

Break in – If you have not reviewed your documents in five + years, now is a good time… let us know, as we should have a soft copy of file … if not…send us one please!

Estate Planning Docs

Will – Document that directs non-beneficiary directed assets (Ex ..house, property, cash and regular investment assets) and may create trusts for minors, names a Custodian, Executor and may also create trusts and Trustees for estate tax minimization and other uses (see final statement in article below on Trusts.)

Power of Attorney– Financial document that appoints someone other than you to make most financial decisions in your absence. Generally this document immediately becomes effective upon authorization, as opposed to upon disability.

Healthcare Power of Attorney – Document that appoints someone to make important healthcare decisions if you are unable. Think un-conscience and need to approve some type of procedure.

HIPPA – Allows your appointed person to receive medical information on your behalf. This is the ant-privacy document to counter unintended consequences of many of the recently enacted privacy laws.

Living Will- Cease and Decease – DNR – These titles are one in the same and are frequently confusing. This document allows medical professionals to NOT mandate all possible care, should you become deceased mentally, but not in body function. DNR stands for do not resuscitate, and is probably the most explanative title.

We will dig more into Trusts in a specialized post (Part 2)  just dealing specifically with that area of Estate Planning!

Now you have a great all-in-one spot for just what the heck all those “Estate Planning” docs are… and us too !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

JK Street Cents Logo

April 2016 Video, Economic and Capital Market Monthly Review, By John Kvale

Here is our April 2016, all new…trendy format Monthly Economic and Capital Market Review, along with a Video for your viewing and listening pleasure. Hope you are enjoying!

 April 2016 Video

Financial Planning Tip – The Estate Plan

Estate Docs Summary

Recently we came across the fact that we did not have a post with a summary of Estate Planning Docs. Here is a link to the detailed explanation of each.

The documents needed:

  • Wills
  • Power of Attorney
  • Healthcare Power of Attorney
  • HIPPA
  • Living Will
  • Trusts

A good Estate Plan will likely include most of these documents.

Economic Update

US Dollar Takes a rest

After a scorching run (much stronger) in 2014 and early 2015, the US Dollar has slowed it’s ascent. While travelers abroad have enjoyed a stronger translation of currency, headwinds have occurred in many other ways.

  • International Company profits struggle
  • Commodity weakness
  • Foreign holdings sag in value
  • Foreign Countries holding US debt saw increased amounts
  • China devalue the US peg, slowly

4-29-16 US Dollar 1- year

 

GDP Update

The first Quarter of 2016, Gross Domestic Production (the broadest measure of economic growth/production) was revised to .5%.  The Federal Reserve members want this much higher, think 2% plus.

As can be seen this number is volatile and for some reason has been showing a rather weak first quarter reading the past several years.

Two consecutive negative readings of GDP are the definition of a recession.

 4-28-16 GDP Econoday

Capital Markets Update

Commodities

After dropping to $26 and change in February, oil breached $45 a barrel this latest month. It is highly possible that when we look back on the affects of this extremely low oil price had on our economy, it MAY have been much greater than we ever expected.

Oil related tentacles may have gone much more broad than measured. Another benefactor of the stable/weaker US dollar.

 

4-29-16 Crude Front Futures

 

International Markets

Little brother international markets, more commonly known as Emerging Markets may be getting their feet under them. Tossed out and left for dead, these markets may have the strongest long term growth potential in the world.

4-28-16 EEM

Never go all in or all out !

 

Have a Great Day!

See you again at the end of May !

John A. Kvale

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
JK Street Cents Logo

 

 

Estate Planning – Total document summary

The term “Estate Planning” gets thrown around frequently, sometimes by us. Recently we tossed the term out and upon finding we did not have an article with a total summary of “Estate Planning Docs” an article was born.

Break in – If you have not reviewed your documents in five + years, now is a good time… let us know, as we should have a soft copy of file … if not…send us one please!

Estate Planning Docs

Will – Document that directs non-beneficiary directed assets (Ex ..house, property, cash and regular investment assets) and may create trusts for minors, names a Custodian, Executor and may also create trusts and Trustees for estate tax minimization and other uses (see final statement in article below on Trusts.)

Power of Attorney– Financial document that appoints someone other than you to make most financial decisions in your absence. Generally this document immediately becomes effective upon authorization, as opposed to upon disability.

Healthcare Power of Attorney – Document that appoints someone to make important healthcare decisions if you are unable. Think un-conscience and need to approve some type of procedure.

HIPPA – Allows your appointed person to receive medical information on your behalf. This is the ant-privacy document to counter unintended consequences of many of the recently enacted privacy laws.

Living Will- Cease and Decease – DNR – These titles are one in the same and are frequently confusing. This document allows medical professionals to NOT mandate all possible care, should you become deceased mentally, but not in body function. DNR stands for do not resuscitate, and is probably the most explanative title.

We will dig more into Trusts in a specialized post just dealing specifically with that area of Estate Planning!

Now you have a great all-in-one spot for just what the heck all those “Estate Planning” docs are… and us too !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

JK Street Cents Logo

 

April 2015 Financial Planning Tax Tip, Capital Market and Economic Review (Video)

Welcome to our monthly Economic, Capital Market, and Financial Planning tip of the month.

This months Financial Planning Tip of the month is a reminder of an important Estate Planning Document

Once again a special thanks to all of  YOU … the best clients and friends as your experiences have again given us the subject matter for our Financial Planning Tip of the Month.

For those new to our writings, we touch on the most pertinent Financial “stuff” along with a video of my mug that has even more specialized details of the latest month as well as this post.

Ok…let’s go!

VIDEO

You Tube Direct Link  or   Vimeo Direct Link

 

The Power of Attorney – Another great Financial Planning Tip:

With the vacation season coming, dust off that Power of Attorney document and take a look!

This document frequent comes in two forms, both very powerful.LivingTrustEstatePic

  • Financial Power of Attorney
  • Health care Power of Attorney

These documents can be an invaluable part of your Estate plan. Be sure we have a copy too, for easy access. These powerful documents are relatively simple, and usually only a couple of pages in length.

 

Just how tough this last recession was

This neat adjustable graph comes from the Minneapolis Federal Reserve Bank research. What stands out is just how deep the recession was. Because it was so deep, it is not surprising that the recovery is taking so long. The sicker we are the longer it takes to get well.

5-1-15 Last Four Recession Recovery

This is one of the longest recoveries on record, in part due to the severity, while not predicting another recession … the longer we go in this business cycle the faster we approach our next slowdown … our radars are up!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

The Power of Attorney …

As summer travel season nears we thought a quick reminder to make sure you have all of your Estate documents (Wills, Trusts …) in order, and especially one document we find extremely useful.

The Power of AttorneyLivingTrustEstatePic

This document frequent comes in two forms, both very powerful.

  • Financial Power of Attorney
  • Health care Power of Attorney

Both documents provide the named person to act like you in case you are not available. Both documents are extremely powerful … be sure you have the correct person named. Both documents can be an invaluable part of your Estate plan … be sure we have a copy too, for easy access. Last but not least, both documents are relatively simple, and usually only a couple of pages in length.

Have a Great Monday!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

Q4 2011 Digital Version of J.K. Financial, Inc. Newsletter is Now Posted

We are happy to inform you that the Digital version of our Q4 2011 J.K. Financial, Inc. Newsletter is posted here on the Newsletter portion of our website for your viewing. With this posting you will find we have a total of six years of Quarterly newsletters now posted. Wow, how time flies!

Our lead story, Part 3 in a series on Options, digs deeper into the terrific protective characteristics options can have if used correctly.

Our second story highlights a few of the more popular investment scams you may want to watch out for; organized in order of popularity from our standpoint, and a NASAA, a governing investment body.

Highlights and a historical look back on how the Small Investor has advantages today, rounds out the middle of our newsletter.

Later we highlight the Power of Attorney (POA), an estate planning document, whose importance is often forgotten.

We are all Lemmings in one way or another, concludes our formal articles with a true, but humorous, explanation of the Lemming and human similarities.

Have a Great Day and a Super Week!

JK