Sometimes you wonder if having smart overachievers for children is really a good thing. A lot of old folk who are neglected by their over ambitious offspring and find themselves put up in old age homes are actually asking themselves this question.
If you're a woman in your late 50s, 60s or more (or perhaps know someone who is), you must brace yourself for a life alone especially in the absence of your spouse. Especially if your kid is an over achiever without a conscience!
It would be a good idea to prepare yourself to shoulder more responsibility, right from paying the electricity bill to filing tax returns to managing social relations. If your children step up to their responsibility you have nothing to lose. If they don't, well, at least you're prepared for it.
1. Financial security: Security, Security and more security should be your primary goal. Get to know what is where, how much, and who is managing it, ie advisor, broker, CA, planner, lawyer etc.
2. The All Important Will: Depending on the asset size and family dynamics, find out if the Will is registered. It's important that a Will is drawn up specifying exactly how the assets will get transferred in the contingent absence of any one spouse.
3. Receivables: Take stock of the following:
a. Life insurance: What is the policy? What is the likely death benefit going to be? How do you file the claim? Is the agent accessible? These days banks sell insurance and if you really need help, be sure to know where and whom to get your claim from. When that money comes in who will help you manage it? You must have all the answers.
b. Pension: This is with regards to spouse pension payments. Is the money going to come into the bank account directly, or do you need to file a claim? What is the procedure to transfer the pension payments in your name?
c. Other investments: Are all investments likely to get transferred to your name? There can be numerous procedural bottlenecks. For example, dematerialisation of shares, joint holding with children and not you etc. There are numerous instances where you can see your money but cannot touch it. At times like this, you wish you had kept all your paperwork in order.
4. Payables: All your receivables will come to naught if your payables aren't in order. Take stock of:
a. Bills/utilities: This is your responsibility now. How will the utility bills get paid? It is a small thing but can you live without a mobile or telephone or electricity?
b. Money owed: Are there any loans or monies owed to anyone that need to be paid off? Make sure they're paid off on priority.
5. Healthcare: Are you covered by the company your spouse was working in? Are there adequate funds for this? If the medical Insurance is not available what are your options?
6. Power of attorney (POA): Another most critical area that is never even thought of is POA. As you age and if your health declines, you may not be able to write our own signature properly. I don't need to tell you what happens if your signature does not match. But imagine the plight, only you can sign but your current signature does not match your earlier one. In this case, choose someone you trust, and give them the general POA or specific POA.
The list goes on but with the six items above taken care of. But if you have the above in order, it will be a whole lot easier for you to manage. Of course, the easier way out would be to threaten to disinherit your kids if they don't do their duty! Go on, flash that cash!
Disclaimer: The contents of the above articles are the intellectual property and copyright of the author, Kartik Jhaveri. No part may be used or reproduced in any form or manner. If you choose to act upon the information contained in the above article it is at your own risk. This article is purely educative and you are strongly advised to consult an expert prior to taking any significant decision.
Comments
0 comment