Top 10 Tips for Graduates: A Checklist of Legal and Financial Steps to Protect You and Your Family
It’s graduation season. That means long speeches full of advice for the future. Whether heading off to college or joining the workforce, use this checklist of important legal and financial steps to protect yourself – and your family.
Megan Harris-Pero, partner of the Saratoga law firm, Harris-Pero & Botelho, offers her top 10 tips for graduates.
Health Care Decisions
Once you are 18, decide who can make health care decisions for you in the event of an accident, and put in place a Health Care Proxy and Living Will (instructions for whether you would want to be placed on machines if you are near death). Talk to an estate planning attorney to help make informed decisions about what should go in these documents. Ask your parents if they are prepared for an emergency. Do they have a Will, Health Care Proxy, Living Will, and Powers of Attorney in place? Should they update anything now that you are graduating?
Bank Accounts
If you are over 18, decide who can access your bank accounts and assist you with contracts (and all things non-medical) if you are in an accident and need help. This person would be your Agent or Power of Attorney. Contact an estate planning attorney to establish a Power of Attorney, Health Care Proxy and Living Will in your name.
Passwords
Save important usernames and passwords in a safe place and share the location with someone you trust, who can access them in an emergency. Make sure your Power of Attorney document specifies that you are giving your Agent (parent, sibling, friend, etc.) permission to use your passwords. Also consider a password manager like 1Password or Keeper for extra protection and ease of sharing passwords with your Agent.
Another Email for Purchases
Don’t give out the same email you use for important communications to stores and retailers. Create a different account where the inbox can be filled with promotions and receipts. This reduces the number of emails you have to read every day. Added bonus: not seeing all those “sale” emails can keep you from making impulse purchases you’ll regret later!
Social Media
Name a Legacy Contact in your Facebook and other social media account settings. This allows a family member or friend to access your account and keep it active should you pass away. This can be important in sharing information and saving photos.
Beneficiary
Open a bank account in your own name if you haven’t already. Be sure to add a beneficiary (called a Transfer on Death Beneficiary) to your account. This person can access funds if you pass away without your family needing to go through Court.
Important Documents
Store important documents in a fireproof safe. Include your social security card, birth certificate, original Power of Attorney and Will, if you have one. If you are living at college or away from your permanent home, consider keeping documents in the safe of a trusted parent, grandparent, or family member.
Your Car
If you own a vehicle in your name alone and you pass away, your family can avoid going through Court to transfer the vehicle to a new owner. Using a DMV form for a transfer after your death only works if there is only one vehicle to transfer, if the vehicle is worth less than $25K, and if there are no other assets that must go through Court. If those conditions are met then your next of kin, surviving spouse, or minor child is able to successfully use the DMV form (MV-349 or MV-349.1). If those conditions are not met, you should consider speaking to an estate planning attorney about drafting a Will.
Joint Accounts, Loans & Purchases
Think twice before opening a joint bank account, making a large purchase, or entering into a loan with a friend or significant other. Joint bank accounts typically have rights of survivorship. This means if you pass away, the other person gets all your money, which may not be your intention. If you get in a fight, will that person empty your account? Do you trust the person to pay off a loan for furniture, a computer or car? Your decision now could have long-term consequences on your credit score.
Your Credit Card Bill
Always pay your credit card bill on time and in full. Make it a habit to pay right away if you have the money in the bank. Check your statement every month for fraudulent charges and notify the credit card company immediately if you find any -- before you pay the bill.
Graduation is an exciting time. Be proud of everything you’ve worked for by taking these steps to protect yourself, your assets and your future. Good luck, graduates!
Have questions? Need to create or update your advanced directives, including your health care proxy, living will and power of attorney? Our team at Harris-Pero & Botelho can help. Visit our website to schedule a complimentary 15-minute phone consultation.