My Survivorship A to Z Guide

• The idea of the list is to have in one place all the information that keeps your financial and personal life functioning. The list is helpful to:
  • Save precious time.
  • Help you keep organized through the year to make sure things are done in a timely manner.
  • Make it easy for someone to take over for you if you travel or it becomes necessary.
• For convenience, we provide a List of Instructions for your use.
• If you don't want to take the time to write the whole List now, then just start. As things in your life happen, put them on your List. For example, if you call a repair person or pay a bill that you pay once a year, or call your attorney. Put house maintenance on the List so you're reminded each year when you're supposed to do it.
• Keep your List with your medical file so it doesn't get lost. If you keep it on your computer, make sure people know where it is, and your password.

There are several ways you can obtain money from real estate in addition to selling it. For instance, consider the following:

• Mortgage.
  • If you don't have a mortgage, you can take one against the value of your home. The lender may even be able to arrange credit life insurance. (Keep in mind that with a loan against the home, you stand a chance of losing it if you cannot pay back the loan.)
  • If you do have a mortgage, determine if you have equity. Equity is the difference between the amount of your loan and the value of the house. If there is equity, you refinance your mortgage.
• Home Equity Line of Credit ("HELOC"): 
  • A HELOC also allows you to obtain money against the equity in your home.
  • Compare the costs of obtaining a HELOC against the costs of a new mortgage. Some HELOCs do not charge any costs if you keep the line of credit for a minimum period of time. 
  • Check the provisions carefully. Some mortgages with the same name have vastly different provisions.
• Reverse Mortgages: People age 62 and older are eligible for a reverse mortgage. With a reverse mortgage, you receive a monthly income instead of making payments. Costs of taking out a reverse mortgage can be high, but worth it if you don't have a short life expectancy.
• Rental:
  • It may also be possible to rent a portion of your home without having to move out. For example, you could set up a separate part of your house as an apartment, or take in a roommate. 
  • If you can't do chores, offer a reduced rent if the renter assumes responsibility for maintaining your home.
  • Talk with an accountant about how to report this income and expenses relating to it.
• Home Care: If you ultimately need home care, it is possible to turn your home into an assisted living facility. You will not only get home care, but companionship as well.

 Potential sources of lenders are:

• Friends and family, particularly people who would inherit the items.
• Commercial lenders.
• Pawnbrokers - they still exist and are generally regulated.
• An auction house that is putting an item up for sale for you.

NOTE: If you are interested in a loan against a pay check (a payday loan) or a vehicle (a title loan), keep in mind that a missed payment frequently results in a major increase in interest rates and fees making it very difficult to repay the loan.

You can borrow against the following investments without selling or closing them before you want to:

• Certificates of Deposit
• Stocks
• Bonds

Loans on these items can come from:

• Banks or other commercial lenders.
• Brokerage houses.
• Friends and family.

 Storing important papers and documents appropriately:

• Protects them against loss.
• Saves you time.
• Makes life easier if someone needs to take over for you.

For example, the original copy of your Will should be at your attorney's or another safe, accessible place - not in a safe deposit box.  Speaking of Wills, you indicated that you do not have a Will. Please take this as a reminder to write one. Everyone should have a Will. For information about wills, including what should go into one, who should be the executor, how to make a will challenge proof, and when to use an attorney, click here. 

Make a note in your diary for a month from now to start organizing your old papers and records. If you're not up to the task then, move the date off another month. You don't have to organize everything at once.

• Any method of organizing your papers that works for you is the right way.
  • You don't have to spend a lot of money to get organized. A few files and shoe boxes will do.
  • Just be sure that if your system of organizing is not readily apparent, show a friend or family member how you do it. It would be helpful to write down the system as well.
  • For information about simple methods of keeping organized, click here. 
• Consider whatever other time saving devices work for you. For example, banking on line saves time compared with hand writing checks.

• Any method of organizing your papers that works for you is the right way.
  • You don't have to spend a lot of money to get organized. A few files and shoe boxes will do.
  • Just be sure that if your system of organizing is not readily apparent, show a friend or family member how you do it. It would be helpful to write down the system as well.
  • For information about simple methods of keeping organized, click here. 
• Consider whatever other time saving devices work for you. For example, banking on line saves time compared with hand writing checks.

Keep a photocopy of all forms you complete.

• If you mail a form, include a cover letter with a date. Attach a copy of the cover letter to the copy of the form.
• When you mail anything that seems important, send it by certified mail, return receipt requested or by overnight with a delivery system that provides delivery receipts. Note on your copy of the letter the receipt number so there is proof what was included in the particular envelope. Keep the receipt with your copy of the letter or document.
• When you are told things must be done by a deadline, note the deadline in your diary -- and finish on time.

Credit also has new uses for people with a health condition as you will see elsewhere on this site. Credit scores are used for more and more purposes - including when setting homeowners and automobile insurance premiums, and when employers decide who to hire. .

Learn what goes into a credit score. Your credit score is a short hand system used by the national credit bureaus to give potential lenders an idea of your credit worthiness. The factors are simple and can keep you from hurting your score unintentionally.

• Check what the credit bureaus say about you. It's free. Make an alert in your computer or on your calendar to check with the credit bureaus at least once a year. Checking helps correct mistakes. It also helps stop identity theft.
• Fix mistakes. If the company won't correct them, you have the right to make comments that have to be included on your report. You don't need a credit counseling company to do it for you. (If you're not up to it, ask a friend.)
• Get as much credit as you can.
• If you have credit balances, move the balances to the card with the lowest rate of interest. Check charges to make a transfer before moving money to be sure a move is worthwhile. Also watch for late fees. If you get to a point where you think you are at the end of your life, move balances to the cards with life insurance.
• Do everything you can to protect your credit. Missteps can be costly.

Watch for identity theft. It only takes a few minutes every couple of months. The last thing you need is to go through the awful time consuming hassle of fixing this kind of problem - and possibly losing a lot of money.

• An alert in your computer or a notation in your diary can remind you to make the calls to the credit bureaus. 
• Don't give your Social Security number to people who call you.
• Consider putting a freeze on new accounts. You can do it through the credit bureaus. 

A dollar saved is an easy dollar earned.

Look at all parts of a tax return to see how to maximize your net income by paying the minimum amount of allowable tax. It is perfectly legal to do what you can to take advantage of the tax laws.

Just because a medical expense is not covered by health insurance, does not mean it's not deductible. For example:

• Transportation to and from your doctor is a deductible expense.
• The cost of changing your home to accommodate any physical needs is deductible -- at least to the extent it does not increase the value of your property.
• A wig for hair falling out due to a treatment may be deductible if it is prescribed by your doctor as a cranial prosthesis.

Medical expenses are only deductible from your income to the extent they exceed the threshold. The threshold for the itemized deduction for unreimbursed medical expenses is 10% of the taxpayer’s Adjusted Gross Income (AGI). However, in the years 2013–2016, if either the taxpayer or the taxpayer’s spouse has turned 65 before the close of the tax year, the threshold is 7.5% of AGI. In 2017 the 10% threshold will apply to all taxpayers

If you and your spouse file separate returns, and the person with the lower income pays the medical bills, there may be a deduction that would otherwise be lost.

If you have a flexible savings account: Money not spent by the end of the year is lost. If you are headed toward a year end with a balance, check the rules to maximize your expenditures. Also check the latest date by which the money can be spent.

If you owe past due taxes or haven't filed tax returns, a health condition is not an excuse. Don't wait to get caught. Penalties can be severe.  File the returns and pay the taxes now. If you can't pay the taxes, work out a solution.

On the other hand, your condition can help you through an audit by letting the auditor know about your diagnosis. It's not a legal excuse. However, even though the auditor works for the IRS, he or she is still human.

• Treat the person courteously. We do indeed get more with honey than with vinegar. This can be particularly difficult when you're not feeling well and are confronted with an endless phone tree. It's okay to let the person know how frustrating the wait to get to him or her has been. It wouldn't hurt to also let the person know you're venting, that you understand it's not their fault, but hope they will let the company know how frustrating it is.
• Keep your emotions, particularly anger, in check when dealing with the government or insurance bureaucracy. 
• Use emotional appeals when they would be effective There are times when anger is appropriate. Even then, use it sparingly -- and always in a manner that is under control. If you have to get frustrating emotions out of your system, vent them with family, friends or your support team.
• Before the end of each conversation, to be sure you are both got the same result from the conversation,, summarize to the other person what is to be done, by whom, and by when.  Ask whether the person agrees with your summary.
• Make notes of the conversation:
  • Include the day and time and what was said. 
  • Also include the person's direct contact information such as direct phone number and e-mail address.
  • Keep your notes in the file with whatever subject you're calling about. It will make it easier to find them when needed.
• Make an alert on your calendar to follow up to check to see if what was promised was done on a timely basis. Follow up on the day of your alert.

In order to avoid problems with the people closest to you and who you rely on for emotional and other support:

• Only ask people who can afford to lose whatever you're asking to borrow. While your intention is to pay the money back, stuff happens.
• Make an arrangement that you think you will be able to live with. Then put it in writing.
• If it seems unlikely that you are going to be able to repay the money, or to repay on a timely basis, let the person know.