Guide to Personal and Financial Preparedness

In Case of Emergency: Your Guide to Personal and Financial Preparedness

When life is running smoothly, it’s natural to avoid thinking about worst-case scenarios – that’s no fun. But part of wise planning, especially in retirement, is preparing for the unexpected. Whether it’s a medical emergency, cognitive decline, or the inevitable reality of death, having the right documents and plans in place ensures that your wishes are clearly communicated and honored.

Taking the time to organize these pieces now is not just about protecting your finances or healthcare decisions; it’s also a tremendous gift to your family. In moments of crisis or grief, the last thing your loved ones need is uncertainty or conflict about what your wishes would be. By removing ambiguity, you allow them to focus on what matters most: caring for you and supporting one another.

Even if you’ve already done estate planning, it’s wise to review and update certain tools regularly. Here’s a refresher on the documents and steps that can help you and your family avoid confusion, legal hurdles, or unintended consequences when life takes an unexpected turn.

Medical Directives & Healthcare Power of Attorney

A medical directive (sometimes called a living will or advance directive) outlines what kind of medical care you’d want if you became unable to communicate. This can include decisions about life support, resuscitation, feeding tubes, pain management, organ donation, etc. These choices can be deeply personal and documenting them clearly helps ensure that your values and preferences are honored if you can’t speak for yourself.

A healthcare power of attorney is another legal document that pertains to end-of-life care. The healthcare power of attorney allows you to name someone you trust to make healthcare decisions on your behalf if you’re incapacitated. This person – sometimes called a healthcare proxy – should be someone who understands your wishes and is comfortable advocating for you, even in emotionally difficult situations. Having the right person in this role can make all the difference in ensuring your medical care reflects your desires.

The difference between the two can be confusing, so think of it this way: an advance directive ensures your wishes are known and respected, while a healthcare power of attorney ensures someone can act on your behalf when you can’t.

Some questions to consider:

• Are you medical directive and healthcare power of attorney documents current and reflective of your present wishes?
• Have you clearly communicated your decisions to the person you’ve named as your healthcare proxy?
• Do your doctors, family members, and trusted professionals know where to find these documents if needed?

Durable Power of Attorney

A durable power of attorney fulfills a similar role to the healthcare power of attorney, but as it pertains to your financial interests. This document allows someone you trust to manage your financial matters if you ever become unable to handle them yourself. This might include paying bills, handling tax filings, managing investments, overseeing property maintenance, or making other financial decisions on your behalf.

Without this document in place, your loved ones could face court proceedings to be appointed as your conservator or guardian which can be a stressful, time-consuming, and often expensive process. By setting up a durable power of attorney in advance, you can ensure your financial affairs continue smoothly, no matter what happens.

Trusted Contact Person(s)

A trusted contact is someone you authorize a financial institution to reach out to if there’s concern about your well-being, unusual activity in your accounts, or if they can’t get in touch with you after repeated attempts.

Imagine this situation:

Our client Michael has always been prompt and consistent in responding to calls and emails about his accounts. However, recently, we’ve tried reaching him multiple times by phone, email, and even by mailing a letter with no response. This is unusual for Michael and naturally raises some concern.

In this case, we decide to reach out to his trusted contact, his sister Phyllis. When we call her, we do not disclose any personal or financial details about Michael’s accounts. The conversation might sound something like this:

"Hi Phyllis, this is Sean McCulloch from Blackbridge Financial. I’m just reaching out because we haven’t been able to get in touch with Michael for some time now, and that’s out of the ordinary based on his usual communication with us. Since you’re listed as his trusted contact, we wanted to check in and see if everything is okay or if you might know why he hasn’t been responding."

Phyllis lets us know that Michael recently slipped at his boat dock and has been in the hospital for the last few weeks mending a few broken bones. Thankfully, she shares that he’s expected to return home soon and will likely be in touch once he’s settled back in.

This is a good example of how a trusted contact can help us look out for our clients’ well-being, not just their accounts. It’s a safeguard designed to protect clients when something unusual happens, giving us a responsible way to check in without crossing personal or financial boundaries. You can easily add a trusted contact to your accounts by calling us or letting us know next time you’re in the office.

Account Access & Trading Authority

Some clients choose to give a trusted family member, friend, or professional some level of account access or trading authority. This allows the designated person to step in and assist with managing investments if you’re ever unable to do so yourself, whether due to illness, travel, or other life events.

There are different ways to structure this authority, depending on your comfort level and needs. In some cases, it might allow for investment decisions like requesting trades. In other cases, it could extend to broader financial management responsibilities.

Whatever level of access you consider, it’s important to choose someone you fully trust, both in terms of integrity and financial judgment. Giving someone access to your account sis a significant decision, and it should be made thoughtfully, with a clear understanding of the responsibilities involved.

The “Love Letter” File: A Gift to Your Family

One of the most carrying and considerate things you can do for your loved ones is to create what we call a “love letter” file – a collection of all the important personal and financial information your family might need if something happens to you.

This is not a legal document, but rather a practical guide your family can turn to during a stressful time. It eliminates the guesswork and helps avoid frantic searches for passwords, documents, or account numbers when emotions are already running high.

Your love letter file might include:

• Instructions for managing household bills or subscriptions (utilities, phone, memberships, etc.)
• Contact information for your financial advisor, accountant, attorney, or other professionals that your family may need to contact in case something were to happen.
• Personal notes about your wishes, such as funeral preferences, care for pets, or guidance for your heirs that wouldn’t appear in a formal will.
• Login information for online accounts (banking, email, streaming services, etc.)
• With the ever-growing prevalence of social media, having a way for your family to lock or delete your social media accounts after you pass away is more important than ever, so be sure to list the login information for your social media accounts.

By organizing this information now, you’re making things exponentially easier for your loved ones in the future – a true act of love and generosity.

Creating your “love letter” file is only part of the process, though. The other essential step is making sure your loved ones know where it is and how to access it when the time comes.

You don’t want to go to the effort of organizing this information only for it to be locked away in a place no one can reach. For example, a paper folder hidden in a safe no one has the combination to, or a file stored on a computer your family can’t unlock won’t do anyone any good. Here are some practical storage options to consider:

Physical (Hard Copy) Storage Options:

• A Clearly Labeled Folder in a Known Location: Store it in a place your family can easily find, like a home filing cabinet or desk drawer, and make sure at least one trusted person knows exactly where it is.
• A Fireproof Safe (with Shared Access Info): If you prefer extra security, you can use a safe – but make sure your trusted family member has the combination, key, or backup access information.
• Include Copies with Your Estate Attorney: Some families choose to give a copy to their attorney to have it stored alongside their legal documents. Be sure your family knows who to contact.
• Share a Copy with Us: We would be happy to keep a copy of your “love letter” on file. If that’s something you’re interested in, just mention it next time you’re in the office and we can help you get started.

Digital Storage Options:

• Password-Protected Document Storage in the Cloud: Use a secure cloud storage service (such as Google Drive, Dropbox, or OneDrive) with shared access or instructions on how to access the file when needed.
• A Secure Digital Vault or Password Manager: Many password managers (like LastPass, 1Password, or Keeper) allow you to store not only passwords, but important notes and documents. These tools often have emergency access features that allow a trusted contact to retrieve the information if something happens to you.
• A USB Drive or External Hard Drive: You can store your “love letter” on an encrypted USB or hard drive but be sure someone knows where it is and how to unlock it.

Final Thoughts

Planning for life’s “what ifs” may not be fun, but it is one of the most valuable and selfless things you can do. By setting up the right documents and organizing your personal information, you make it easier for your family to carry out your wishes without second-guessing or conflict—especially during times of grief or crisis.

If you’d like help reviewing your current plans, coordinating with your attorney, or creating your own “love letter” file, we’re here to support you every step of the way.

Blackbridge Financial and LPL Financial do not provide legal advice or tax services.  Please consult your legal advisor or tax advisor regarding your specific situation.