#53 Is Your Documentation House in Order?
For specific situations that
are on our day list or in progress, most of us get the needed documentation
together, distribute it where required, acquire it where entitled and move
on. But, when it comes to documentation we
should have ready, in advance, for when it’s needed some time in the future – we
tend to put it off, forget to update or just procrastinate. Maybe
you are one who has it all under control, but for the rest of us, here’s a
nudge!
To begin with, it’s not just
our personal documentation obligations that are important. When we participate in our business
community, our general society, our government and our acquisitions – such as
the purchase of a home -- it’s vital to be sure others provide the correct
documents to us for what we buy, own and use, etc. Some documentation is about an outreach factor
on our part; and some is about the compliance of others.
Many factors drive the kinds
of documents we need to pull together, provide, execute, acquire, store safely
and update regularly. Age is a driving
factor, as is our marital and/or parental status. For some of us, our health may demand that we
have very specific documents.
When we are young we do not
usually spend a great amount of time thinking about our elder years, the
realities of later life, incurable illness and inevitable death! We don’t always think about things like a
Will or a Health Directive. Unless we have
children, we don’t consider Guardianship preference documents or life insurance
to help them if they still need to be provided for when we die.
There are important documents
without which we just can’t do certain things unless we conscientiously keep
them current, and updated if our circumstances change (like drivers’ or
contractors’ licenses). Documents such
as Leases, Rental Agreements, Mortgages, Medical Identifications (HMO, Social
Security, Medicare, etc.) medication stipulations and various Insurance
policies are additional important documents that need to be kept current for
functional, referral and legal purposes...
How about other forms of
documentation? When moving through the
process of purchasing a home, we have the entire documentation history of that property
researched through the Title company that our Mortgage loan officer recommends. We might not like the time it takes, but it is
essential. Your Mortgage is one of the
most important documents you will have during your lifetime.
An essential document
inventory is similar in many ways for all of us, but it’s very specific for
each of us in other ways. Those in the
know advise us that young adults should take action to protect their assets and
provide a record of their wishes in the event of a crisis. In California, we have to insure our
vehicles in order to have our driving privileges! Many medical providers insist on a DNR in
their files, with specific instructions and authorized parties named.
Being clear about exactly what
protections you have to have as well as what is advisable to have can get
confusing. Many, many smart protections
are completely optional.
It’s good investment to get
professional guidance in some of those optional cases. For instance, how much life insurance is
reasonable? Your Mortgage loan officer,
your attorney and your financial advisor are all good resources for what
documentation you need, how to acquire it, how to maintain it and how to benefit
from it!
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