It is never too late to set up a home business center or reorganize your current one. The time you spend now may save you tax dollars later. Tax rules require records to support the information given on your tax forms.

Handling your personal finances will be much easier if you have a well-equipped home business center. It does not have to be elaborate. It should be located in a convenient, comfortable area of the home, contain necessary equipment, supplies, papers, records and references, and have a good light.

You may be able to find space for a home business center in just about any room of your house. Ideally, you would have a special room—an office. But few homes today are large enough for such a luxury. Instead, consider a spare corner in the living room, dining room, a bedroom, kitchen or family room.

You’ll also need storage space for inactive records. That space might be in the attic, garage, basement, under a bed, or those hard-to-reach top closet shelves, under stairs or in the back of a deep closet.

You will need some equipment for your home business center such as: an ample, sturdy writing surface, comfortable chair, storage space for current records and papers, equipment and supplies.

This does not automatically mean you need a desk and file cabinet. You can use the dining room table as your writing surface and a nearby cabinet or chest for storage space. A desk and storage unit can be built into an unused closet. A plywood or hollow core door mounted on two, two-drawer file cabinets provide both storage and writing surface. Or you could use a new or remodeled standard office desk and file, or a combination desk and metal file unit.

You also will need some supplies such as pencils, erasers, tape, account books, ruler, scissors, deposit slips, pencil sharpener, stationery, paper clips, rubber bands, stamps, a dictionary and wastepaper basket.

Other supplies that you may want, but that are not essential include: stapler, spindle, paper weights, address book, book ends, typewriter, parcel post scale, parcel post labels, glue, sponge for moistening envelopes, stamps, letter opener, hole punch, adding machine and bulletin board.

In your home business center you will need storage space for your equipment and supplies, reference materials, important papers and documents, bills, unanswered mail, current receipts, and a place to store inactive files.

For more information on what to keep in your business center contact your local county Extension office for information on the "Planning Your Financial Future” workshop

Prepared by: Dr. Josephine Turner, CFP
Professor, Family, Youth and Consumer Economics
University of Florida

Disasters are a part of life. Whether the disaster is a hurricane, tornado or a terrorist attack preparation is the key to survival and to clean up after the disaster. Knowing where your family’s records and valuable documents are and being able to pick them up and take with you, if you must evacuate, can save valuable time. For your “on the go” papers you will want to purchase a packet, folder, brief case or other carrying case for your documents. Place documents in this case in a secure but easily accessed location in your home. Then if you need to evacuate, important documents that need to go with you are in one place.

If you have access to a scanner, you may want to scan your papers, documents, and photographs to a computer disk. Keep the computer disk in the carrying case and leave the original in the recommended storage. You may also want to videotape the contents of your home to supplement your household inventory. If you use a software package to keep track of your finances keep a back-up copy with your “on the go” papers and update the back-up disk monthly.

“On the go” Important Papers and Documents Checklist

Important papers are papers or documents that you will need sometime during your lifetime for a variety of reasons, such as a birth certificate which is used for proof of age and or citizenship to obtain a drivers license or to go on a cruise. Other important papers include adoption, marriage and death certificates, passports, deeds, leases, insurance policies, Social Security records, contracts, wills, trusts, and ownership papers.

Why should you be concerned about important papers?

In case of a disaster, it would be difficult to remember or identify exactly what you lost. Valuable time and money could be lost while you try to remember what possessions you owned or while trying to replace lost documents. Therefore, it is much better to protect valuable papers than to replace them.

Papers to keep on your person (wallet or purse):

• Personal identification: your name, address, telephone number and the name, address and telephone number of a relative or close friend.
• Credit Cards
• Medical Information: blood type, diseases (diabetes, heart disease, epilepsy, etc.)
• Doctor’s name, address and telephone number
• Social Security Card
• Cash for emergencies
• Driver’s license

“On the go papers” filed in special packet

• Disk of family records including the following or a copy of the following:
• Checking Account numbers and bank
• List of savings and investments including CD’s, stocks, bonds, and mutual funds
• Credit card safety record
• Household inventory – videotape, paper copy, and or disk
• List of Insurance policies with name of company, type of policy and policy number
• Copy of your will and trust documents
• Titles (house, car, other property)
• Certificates or a copy of them: birth, marriage, divorce, death, and adoption
• Passports
• List of family advisors: accountant, attorney, banker, doctors, dentist, employer, financial adviser, insurance agents, religious leader, banker
• Bank account numbers
• Educational records
• Investment records
• Military records
• Debt Instruments
• Other special papers that would be difficult or impossible to replace if lost.
• _____________________________
• _____________________________

For more assistance with family records see publications FCS 5209, FCS 7103, FCS 7018, and FCS 7027.

Prepared by: Dr. Josephine Turner, CFP
Professor, Family Youth and Consumer Economics
University of Florida

Credit Series: The Plastic Dilemma

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

How many credit cards do you carry in your wallet or purse? According to a recent American Bankers Survey 8 out of 10 U. S. households own one or more credit cards with the average family owning nine credit cards. Bank, stores, airlines, oil companies and travel and entertainment companies issue credit cards. Only one-third of card users pay off their balances in full each month.

New on the market is the "Smart Card" which is a combination of a credit card, driver's license, health care ID, telephone card, etc. At the University of Florida students are using a smart card to pay tuition, borrow books from the library, rent videos, buy meals in the cafeteria, and gain access to dormitories and online study groups.

The credit card and smart card are different from the debit card. The debit card electronically subtracts from your account at the moment you buy goods and services.

The following tips will help you protect your cards (debit and credit) from theft or fraud.

• Never leave your cards unprotected on a counter, in a hotel room or in a car glove compartment. A card lying around is equal to a $50 bill or a signed $50 check.
  
  
• Wait to present your card until the sale or service has been completed. And always be sure that it is your card that is returned. Read the receipt slip carefully before you sign. Be sure the total amount equal what you actually purchased. Never sign an incomplete or blank sales slip.
  
  
• If an error was made on a sales slip, be sure it was destroyed before you sign another.
  
  
• Save the receipt to compare with your monthly statement. When the statement comes in, go over it carefully with the receipts in front of you. Are there charges you did not make? Is there a billing error? If there is, follow the directions for a contested bill and immediately contact the card issuer explaining what you believe to be wrong.
  
  
• When you pay your monthly bill, write your card account number on the check. Otherwise, your check could be credited to the wrong account.
  
  
• Keep a list of all your card account numbers in a safe place at home along with the phone numbers of the issuers. Periodically check your cards to be sure they are where they should be. When carrying your cards, keep them separate from your personal identifications if possible.
  
  
• If you move, give the issuer your new address promptly. If you don't, renewal cards could be sent to the wrong address and could be lost or stolen.
  
  
• Always notify the card issuer if a renewal or new card doesn't come in a reasonable time.
  
  
• If you lose a card or if it is stolen, report it to the issuer by telephone. Follow immediately with a written notice. Keep a copy of the notice for yourself. Include your card number and when and where you think that you lost it. Should you find your missing card later, promptly report this to your issuer. Ask whether you could continue to use it or destroy it and wait on a new card.

For more information contact your local county Extension office.

Reference: Kapoor, Dlabay, Hughes. Personal Finance (6^th edition) 2001

Credit Series: In a Bind...Which Bills Do You Pay First?

Dr. Jo Turner, Professor, Family and Consumer Economics

Many people find themselves in a bind from time to time. The way they pay their bills will have an impact on their credit report and could harm them for years. Even after the debts have been paid a poor credit rating could prevent someone from buying a car, renting an apartment or even getting a job.

If you find your self in a financial bind be very careful to avoid being 90 days or more late on any bill. Some creditors write accounts off as bad debts and report your failure to pay to the credit bureau. This can make it difficult to get credit in the future. If you are juggling expenses, the list below should help you prioritize payments:

• Child Support. It is critical to make child support payments. By law, credit bureaus must report any information received about overdue child support, as long as it's verified by the proper agency and is not more than seven years old. A bad credit rating may be the least of your worries. Law enforcement agencies can intercept your tax refund, garnish your wages, put a lien on your property, and suspend your driver's license. If you can't pay because of a financial crisis, you should go to court and see if you can get payments reduced.

• Mortgage. If you are more than 90 days late on your house payments, it will probably end up on your record. Mortgages also tend to have hefty late-payment fees, and if you miss two or more, your lender may start foreclosure proceedings.

• Car Loans. You should not fall behind on car payments. In some states, your car can be repossessed after only one missed payment. If your car is worth more than you owe, you may be able to refinance your loan with lower monthly payments. If not, your lender may agree to a temporary schedule of reduced payments. Most of the major auto financing companies let a borrower with a good payment history and a reasonable repayment plan either skip a few payments or refinance. Before calling to discuss alternatives with the lender, draw up a plan for getting back on schedule.

• Taxes. The Internal Revenue Service (IRS) can be rough if you don't pay on time. If you are notified that you owe past-due taxes, make every effort to pay as quickly as possible. If you can't pay, contact the IRS to arrange a repayment schedule. If you can't pay because of a genuine hardship such as major medical bills or lengthy unemployment, you can petition the IRS with an "Offer in Compromise" by which you repay only a portion of the total back taxes owed. You'll need to seek the service of an accountant.

• Bank Credit Cards. MasterCard and VISA cards are valuable references on your credit report. Pay them on time, even if you only make the minimum payment. Once you are able to pay all of your bills as they come due, make a plan to pay off the entire balances on all of your credit cards. It is very costly to carry over balances from month to month and can lead to serious problems

• Department Store Cards. Most will accept lower payments for a few months.

• Utilities. Utility companies may be willing to work out a modified payment schedule for a short period, if you can't pay on time. But you may have to put up larger security deposits for future services.

• Student Loans. Federal student loans may be deferred if you are having financial problems. If your loan is deferred, you won't be required to make payments, but you can't qualify for deferment once your loan is in default, so don't wait until you are behind in payments to apply. Continue making payments until your request is approved.

• Medical Bills. Most medical bills aren't reported to credit bureaus until they are sent to collection agencies. You can probably work out a payment schedule with the doctor or hospital. Just be sure to confirm any agreements in writing and ask for confirmation that reduced payments won't be reported to the credit bureau.

• Small Bills. Set aside small bills, such as magazine subscriptions and book clubs, but be sure to contact the creditor if you can't pay the bills now.

Until you can pay all of your bills on time, STOP using credit of any kind. Remove your credit cards from your wallet and cut them up. Also STOP trying to borrow yourself out of debt.

Look for additional income by getting a second job, or a job with more pay. Use your hobbies and skills to produce extra income. Sell some items you no longer need such as that second or third car and apply this money to reducing your debts.

If you are thinking of consolidating your debts, remember you will have smaller payments over a longer time period and it is usually more costly. With consolidated debts people often think they have more money and soon find themselves back in the same situation again. You may want to consider a home equity loan. If, however, you get a home equity loan or a consolidated loan, pledge to yourself that you will not use credit in any form until you have completely paid of the loan. If you get into debt trouble again you could lose your house.

Last but not least, think about the problem you are having paying bills and use this as an opportunity to learn from your mistakes. Resolve to make some changes in the ways that you handle money to see that such problems never happen again.

Credit Management Series: Credit Rating

Written By: Dr. Jo Turner, Professor, Family and Consumer Economics

A good credit rating is a valuable asset in today's credit oriented society. If you have a good credit rating it is worth protecting. You protect your credit rating by the way you manage your money and your debts. Use credit to increase your assets. Make payments according to the terms in the credit contract you signed.

Your credit rating begins when you first apply for credit. The prospective lender requests information about you on the credit application. This information is used to predict your credit behavior. The loan officer examines the information on the credit application for three items, usually known as the three C's of credit.

• Character -- Your reputation for honesty and reliability and your record of responsibility.

• Capital -- Things of monetary value that you own.

• Capacity -- The income you now have and what can be expected in the future with which to pay for the credit you get.

Typical questions which provide the loan officer with information needed to make the decision on your loan application include: Where are you employed? How long have you worked there? How much is your take-home pay from all sources? Where do you live? How long have you lived there? Do you own or rent? Do you have a checking or saving account? Where? What are your present debts, including all loans and charge accounts?

Prior to acting on the application, the loan officer will conduct a credit investigation. The credit investigation may be limited to information available from the local credit bureau or the investigation could be more extensive depending upon the amount and purpose of the loan and the information available from the credit bureau.

The credit bureau serves as a clearinghouse. They develop a credit file on people who use credit. They collect, store, and sell information. They do not decide your credit rating or whether you will be able to get credit. The loan officer decided to grant or deny credit based on the results of the credit investigation.

Your credit record, good or bad, follows you wherever you go. You can't hide from it. Your credit record is a history of how you use credit. It includes the information that you have given about yourself on credit applications. It also includes information your creditors have given the credit bureau about you. Creditors give the credit bureau such information as how often you use credit, what you use credit for, and the speed with which you pay your bills.

When you apply for credit, answer all questions honestly. If you neglect to include some unfavorable information, it most likely will come out during the investigation and lessen your chances of obtaining credit. If there is or has been a problem, explain the reason for the problem.

If you find that you can't pay your bills as scheduled, contact the lender before the accounts are declared delinquent. You and the creditor can usually work out an agreement that will suit you both. Creditors are not interested in punishing you for your misfortune. They only want reasonable assurance that their money will be repaid.

If you are refused credit, ask the loan officer for an explanation. If you are refused credit due to some incorrect information in your credit file, visit your local credit bureau. They will be willing to get all the facts straightened out. If it is not straightened out to your satisfaction, you have the right to put your version of the story within limits in your credit record.

A good credit rating is something everyone should have, if for no other reason than to make it possible to get credit in an emergency. For more information on credit contact your local county Extension office.

money, credit rating, credit

Credit Management Series: Credit Rating

Written By: Dr. Jo Turner, Professor, Family and Consumer Economics

A good credit rating is a valuable asset in today's credit oriented society. If you have a good credit rating it is worth protecting. You protect your credit rating by the way you manage your money and your debts. Use credit to increase your assets. Make payments according to the terms in the credit contract you signed.

Your credit rating begins when you first apply for credit. The prospective lender requests information about you on the credit application. This information is used to predict your credit behavior. The loan officer examines the information on the credit application for three items, usually known as the three C's of credit.

• Character -- Your reputation for honesty and reliability and your record of responsibility.

• Capital -- Things of monetary value that you own.

• Capacity -- The income you now have and what can be expected in the future with which to pay for the credit you get.

Typical questions which provide the loan officer with information needed to make the decision on your loan application include: Where are you employed? How long have you worked there? How much is your take-home pay from all sources? Where do you live? How long have you lived there? Do you own or rent? Do you have a checking or saving account? Where? What are your present debts, including all loans and charge accounts?

Prior to acting on the application, the loan officer will conduct a credit investigation. The credit investigation may be limited to information available from the local credit bureau or the investigation could be more extensive depending upon the amount and purpose of the loan and the information available from the credit bureau.

The credit bureau serves as a clearinghouse. They develop a credit file on people who use credit. They collect, store, and sell information. They do not decide your credit rating or whether you will be able to get credit. The loan officer decided to grant or deny credit based on the results of the credit investigation.

Your credit record, good or bad, follows you wherever you go. You can't hide from it. Your credit record is a history of how you use credit. It includes the information that you have given about yourself on credit applications. It also includes information your creditors have given the credit bureau about you. Creditors give the credit bureau such information as how often you use credit, what you use credit for, and the speed with which you pay your bills.

When you apply for credit, answer all questions honestly. If you neglect to include some unfavorable information, it most likely will come out during the investigation and lessen your chances of obtaining credit. If there is or has been a problem, explain the reason for the problem.

If you find that you can't pay your bills as scheduled, contact the lender before the accounts are declared delinquent. You and the creditor can usually work out an agreement that will suit you both. Creditors are not interested in punishing you for your misfortune. They only want reasonable assurance that their money will be repaid.

If you are refused credit, ask the loan officer for an explanation. If you are refused credit due to some incorrect information in your credit file, visit your local credit bureau. They will be willing to get all the facts straightened out. If it is not straightened out to your satisfaction, you have the right to put your version of the story within limits in your credit record.

A good credit rating is something everyone should have, if for no other reason than to make it possible to get credit in an emergency. For more information on credit contact your local county Extension office.

money, credit rating, credit

Credit Series: Credit Card Insurance: Do You Need It?
Dr. Jo Turner, Professor, Family and Consumer Economics

Do you own a credit card? Most Americans do. You might even feel a need to protect yourself and your credit cards against credit card crimes.

You may be contacted by an agency offering credit card protection insurance. You may already have been contacted by one of these firms. Before you sign up for credit card protection, know what you are buying.

Credit card protection firms -- for a fee ranging from $15 to $50 per year -- generally offer to keep a record of the cardholder's credit card account numbers, report lost or stolen cards, arrange for replacements, and notify card issuers of the customer's address change. Some services also provide stranded travelers with emergency cash advances and airplane tickets.

Many people think they need a protection service for insurance against having to pay for purchases charged to their account if their card is lost or stolen.

These services may sound inviting, until you realize what your rights are as a holder of a credit card.

Your credit card losses are limited by law to $50 per card if you immediately report the card lost or stolen. Some card issuers will not press the victim for this $50 per card loss if the victim is willing to file charges against the thief, if caught.

By paying for credit card protection, you're unlikely to receive services that you do not already have by owing a credit card, or services that you cannot easily provide yourself -- with no middleman cost. You may be doing yourself a disservice by buying credit card protection, because of the likely time-delays in agency reporting.

Protect yourself from unauthorized charges against your credit cards by keeping a record of each credit card number. It is as simple as a telephone call and a follow-up letter to report a lost or stolen card. It may be more important that you do the reporting yourself to eliminate the risk of being held liable for unmade purchases. A protection agency may not make a report to the issuer for several days to a week after you report it to them.

As for the other services offered by an agency, you already receive a form to be completed for an address change along with your charge card bill each month. And many credit cards provide emergency cash advances.

So think carefully before you decide you really need additional credit insurance. For more information on credit contact your local county Extension office.

money, credit, insurance

Credit Series: Cash or Credit

Written by: Dr. Jo Turner, Professor, Family and Consumer Economics

To pay cash or use credit is a choice consumers have to make each time they buy. There are many good points and bad points to using credit.

Credit costs money. The consumer pays extra for items when buying because of finance charges. Credit can be bad also because the consumer is spending future income. They are living on money they expect to have in the future. What happens if they lose their job or become ill?

Another bad point to credit is that consumers may overspend. This is easy to do when bills don't come for a month.

Good points of credit include tracking spending is easier, getting goods and services before paying for them, and using credit to take care of emergencies. Another good point is credit eliminates the consumer's need to carry large amounts of cash.

Before deciding to use credit, consumers should figure out how much they can afford to repay each month. They must remember they are agreeing to pay back the money spent and must make monthly payments.

Before using credit consumers should ask themselves the following questions:

• Do I really need the item, or can it wait?
• What will be the extra cost of using credit?
• Is having it now worth the extra costs?
• Can I make the monthly payments as scheduled?
• Will I have to give up something else more important in order to use credit now? And,
• Will I be able to handle an emergency if one comes up?

Instead of using credit and making minimum monthly payments, consumers would be wise to save money and pay cash for items later. By saving money consumers can earn interest and will not have to pay finance charges.

money, credit

Crisis Management Series
Dr. Jo Turner, Professor, Family and Consumer Economics

A letter of last instructions is an informal document and one of the first things your family will need to locate after your death. You don't need an attorney to prepare it. The purpose of this letter is to give your personal representative or family member information concerning important personal and financial matters. Although this letter does not carry the legal weight of a will, it is very important because it clarifies requests to be carried out upon your death and provides essential information, thereby relieving the surviving family members of needless worry and speculation. Your heirs will be grateful for this information.

When writing your letter of last instructions use the following list as a guide and provide in detail, such information as names, addresses and telephone numbers.

Notification

Prepare a list of people to notify of your death. Include family members, acquaintances, and organizations. Also include professionals, your accountant, attorney, broker, employer, executor, financial institutions, insurance agents, newspapers to receive obituary information, Social Security Office (include Social Security Number and location of Social Security card), and Veterans Administration if appropriate.

Funeral Arrangements

• Describe the arrangements you have already made and those that your family must make.
• Specify your wishes on the following: Organ donations, autopsy if requested, embalming, public viewing, burial type, cost. Remains are they to be donated (detail of arrangements made), cremated (and the ashes: scattered, buried at, disposed of as follows [provide details]), or buried. Type of service and where, specify memorial gifts or flowers. If prearrangements have been made give details.
• Include the number of death certificates that will be needed to collect insurance and other benefits usually 6 to 12.
• Put together information the funeral director will need such as your full name, address, marital status, spouse's name, date of birth, birthplace, father's and mother's name and birthplaces, name of next of kin (other than spouse), length of residence in state and in United States, military records/history, Social Security number, occupation, and life insurance information.

Personal Papers

In your letter give the location of all of your personal documents including your will; birth, baptismal, and marriage certificates; communion and confirmation certificates; diplomas; military papers; naturalization papers; and any other documents such as divorce or adoption papers.

Insurance

List all of your insurance policies by type (life, auto, home, veteran's medical, credit life), company name and address, policy number and insurance agent. Include a description of any loans that you have taken out against a policy and not yet repaid. Also include the location of each policy.

Personal Effects

Provide a list of your personal effects and who is to receive each. Include such detail as to who is to receive your golf clubs, gold watch and clothes.

Household Contents

List the contents of your house and name of owners, form of ownership and location of documents, inventory, and appraisals.

Automobiles

Tell where the registration and other papers for your automobiles and other titled property may be found.

Taxes

Include in your letter of last instructions the location of your income tax returns for the past five years.

Boxes

Be sure to give the location of your safe deposit box, a list of the contents, and where the key is located. Also provide the location and number of any post office boxes that you have. Tell where the key(s) or the combination of the box(s) may be found.

Credit Cards

List your credit cards by issuer and by card number. Request a copy of "Credit Card Safety Record" from your local county Extension office to make this task easier.

Homeowner Records

Give the location of the deed and mortgage papers on all property that you own. Provide information on taxes, liens, leases, etc.

Investments

Make a list of all stocks, bonds, and other securities by certificate number, issuers, and cost. Tell where the documents are located and identify stockbrokers with name, address and telephone numbers.

Trusts

Make a list of all the trust that you have established. Give the name and address of the trustee and identify the type and size of the trust.

Loans

List all loans and other accounts that you must repay. Give full information on terms, payments, collateral, and etc.

Bank Accounts

List all your checking and savings accounts by name and institution, address of the office where the account is located, the type of account and the account number. Include the location of canceled checks and statements.

Debts Owed You

Make a list of all the debts owed to you; include full name, address and telephone number of the debtor, payment terms, collateral, etc.

Survivor's Benefits

List possible sources of benefits such as Social Security, veteran’s, employee, fraternal association, and credit life insurance. Include how much to expect from each source.

Other

Provide the location of receipts, warranties, and other miscellaneous papers. Explain any unusual provisions of the will, such as disinheritance of a child or forgiveness of a debt.

Write your letter clearly so that even a stranger could understand it. Also be sure that your letter does not contradict your will. If you are in doubt check with your attorney. Since this letter describes your finances in detail give a copy of the letter to your personal representative and keep the original and copies in a safe place. Be sure to sign and date your letter of last instructions and keep it separate from your will.

money, financial, wills, funerals, finances, funeral arrangements

Crisis Management Series
Legal Matters
Dr. Jo Turner, Professor, Family and Consumer Economics

This article will continue to examine legal documents available to help plan how your personal and financial affairs are to be handled when you are unable to take care of them.

The Durable Power of Attorney

The durable power of attorney is a more comprehensive document since it can give an individual or individuals decision-making power when your are disabled or unavailable to handle your affairs. It can cover healthcare decisions and personal matters, but it usually covers financial decisions if you become incapacitated. You might feel more comfortable having someone else manage your financial decisions because of his/her expertise. On the other hand, you might want to grant durable power of attorney to the same person you name as your healthcare surrogate. Your doctor and attorney can assist you in specifying which medical procedures and treatments you want and which you do not want. It is wise to do this now when you are young in case of an accident or other unforeseeable tragic event.

Patient Self-Determination Act

This legislation has been passed to inform an individual of his/her rights to exercise more control over his/her life. Under this act, healthcare facilities must inform all adult patients of their rights to create an advance directive, such as a living will, designation of a healthcare surrogate or durable power of attorney; explain the facility's policies for carrying out patient decisions; and provide education for staff and the community about advance directives, including when and how they may be used. This law, although very important for the terminally ill, applies to any person using the healthcare system. The law states that hospitals, hospices, nursing homes, and all other healthcare facilities that receive Medicare funding must provide patients with written information regarding their rights to accept or refuse any medical treatment.

Representatives You Choose

Substitute Payee. A substitute payee is typically used only for the purpose of providing you with help in cashing and writing checks. Your bank will provide you with the appropriate forms for designating a substitute payee.

Representative Payee. A representative payee is used in a government benefit program such as Social Security. The person asking to be named as representative payee must file an application and must provide the Social Security Administration with evidence of the relationship to the person to whom the checks are made out. The representative payee must use the payments for taking care of the Social Security recipient and must submit a written report on how the funds are actually spent.

Court Appointed Representatives

In some cases, a court will appoint a representative for an individual who can no longer handle his/her affairs and who have not made arrangements for executing his/her wishes. For this to happen, the court must conduct a trial by jury to determine the individual's ability to manage personal or financial affairs. While the specific terms of these positions vary from state to state, they are found nationwide. If a person is judged to be incapable of managing his or her affairs, the court may appoint another person to one or both of the following positions:

Conservator. A conservator is the person who has control in managing the business and financial affairs of an individual for reasons of mental illness or another incapacity. This person can provide assistance either temporarily or permanently depending on the duration of the disability.

Guardianship. Guardianship can be granted for any person who is incapable of managing his or her personal affairs. A district court appoints an individual to act on behalf of the disabled person.

power of attorney, patient self-determination , representatives

Crisis Management Series
When One Can Not Make Decisions
Dr. Jo Turner, Professor, Family and Consumer Economics

Power of Attorney

A power of attorney is used when you can still make your own decisions, but you want someone else to act on your behalf. It gives another individual legal authority to manage some or all of your personal affairs. A power of attorney is created in a signed document that states who is the principal agent for you. It also describes what powers are being given on your behalf. A power of attorney does not necessarily go to an attorney, but can be any trusted individual who can act on your behalf. He or she does not have to reside in the same state as you.

You need to be specific about what decision-making power you grant with the power of attorney. The power of attorney maybe very limited. You may allow someone to make a deposit into or withdraw money from your bank account or represent you in the selling of your house. In that case you need to be careful to limit the power of attorney's action. The power of attorney can be very general and broad to cover any activity that you could do for yourself. The power of attorney may end in several ways:

1. When you remove the power of attorney. (This can be done at any time.)
2. When the individual has completed the designated task;
3. If you become unable to make decisions, and/or
4. Upon your death.

Will

The main purpose of a will is to carry out your wishes in disbursing your property (assets) and to allow you to identify guardianship for a minor child, or incompetent child or adult. Without a will, state law will guide the distribution of assets among your relatives including the decision of who will be designated as the guardian for individuals who need such oversight.

Trust

A trust is a legal document in which legal title of property is held (home, investment, etc). A person or institution (trustee) then manages the property for the beneficiaries. This relieves the burden of managing finances from an individual who is inexperienced in handling finances. It allows the individual to decide how and when money will be disbursed from one generation to the next. A trust also allows the estate to avoid the risk of a will being contested. A trust can shorten the time it takes to distribute property to heirs as well as providing privacy for financial affairs. A personal trust is also advantageous in the event that you become incapacitated. In addition it avoids the process of going through probate court.

A trust will not suit everyone's needs, and you should consult an attorney before deciding to set up a trust. You must weigh the cost of setting up a trust verses the benefits a trust can provide you. In most states, the probate process is usually simple and relatively inexpensive for small estates.

Letter of Last Instructions

Upon your death, your loved ones will need information to collect death benefits and settle your estate. Last instructions should include your full name, birth date and place. It should contain the location of important records, such as marriage certificates, Social Security papers, life and other insurance policies. It also should contain the location of any other legal documents, including your will, deeds to property, automobile titles, and income tax records for the last seven years. In addition your letter of last instructions may include specific directions for funeral arrangements.

power of attorney, will, letter of last instructions, trust, money, insurance

Crisis Management Series
Plan Ahead for Incapacity
Dr. Jo Turner, Professor, Family and Consumer Economics

At some point in life, many people will need help in managing their affairs or in taking care of themselves. This can happen at any age and for many different reasons. It's most likely to happen, as you grow older, especially in the years prior to death -- a time often characterized by increasing mental and physical decline. Many individuals are disabled six months or longer before they die and may be unable to make their own decisions. A variety of legal documents are available to assist during these periods; some provide temporary help, others offer more permanent assistance. Planning ahead enables you to make important decisions about how your personal and financial affairs will be handled if you are unable to manage.

There are numerous issues to consider including:

• What end-of-life decisions might you or your family members face?
• How can you best prepare for the potential of mental or physical incapacity?
• What planning tools, including the creation of legal documents are available?
• Older people and their families also need to consider a variety of choices such as long-term care, guardianship designation, power of attorney, and dispersal of property and household items.
• Who will execute the last will and testament?
• Likewise, choices need to be made regarding heroic measures to prolong life and the possibility of organ donations.

These are not pleasant issues but when possible, the family needs to plan ahead. Discuss the issues with your family or persons you trust. Early discussion helps to avoid decisions that are in opposition to one's lifestyle and wishes, as well as decisions that are unacceptable to family members or significant others.

Legal documents such as advanced directives are available to enable you to exercise more control over your life.

Advanced Directives

An advanced directive is any written document signed in advance, which gives explicit instruction regarding healthcare treatment or which names someone to make such healthcare decisions for you, if you are unable to speak for yourself. Advance directives usually take the form of a living will, healthcare surrogate, or durable or springing power of attorney.

Living Will

A living will is a document that assists an individual in making his or her wishes known regarding life-prolonging treatment and "artificially provided nutrition and hydration." Generally, a living will is quite limited in applications. A living will allows individuals to prepare in advance for the time that they can no longer actively participate in making decisions about their healthcare. Typically, you and two other people must sign a living will; each must be at least 18 years old, of sound mind, and of no relation to you. They cannot be your doctor or employed by your doctor. They also cannot be employed by the healthcare facility where you are a patient or anyone responsible for paying your medical bills.

Some states will accept a notarized living will. Be sure to keep at least one copy in a safe, easily accessible place. You may wish to carry a copy with you when you travel. Your wishes may not be honored in another state or country if they conflict with existing laws of that state or county. The rule of the state where the treatment occurs controls not the state where the living will was signed. Nevertheless, even if the living will is not honored in the treatment state, it is valuable evidence of the patient's wishes. It's also a good idea to provide a copy of your living will to your physician for your medical record and to relatives with whom you might live or visit.

A national study recommends that you (or your healthcare surrogate if you are incapacitated) discuss these issues with your attending physician and have noted in your chart that you have a living will. This will help in the event of an emergency that occurs at the time when your physician is not in the hospital. Otherwise, heroic measures might be taken which you have specified that you do not want implemented. The study also showed that your living will should spell out which heroic measures you do not want taken.

Healthcare Surrogate

A healthcare surrogate is a trusted person you name to make medical and health care decisions when you are unable to do so. The naming of the surrogate is very important. Surrogates must know your values and wishes intimately, because they serve as your voice and advocate. In most states, you can designate a healthcare surrogate in your living will.

There is a growing trend across the country to combine the living will and healthcare surrogate (which is also called a healthcare power of attorney) into a single comprehensive document. Such a document ensures that the majority of health care decisions for individuals lacking capacity, such as day-to-day care and placement and treatment options, are covered.

At minimum, both of a living will and health care surrogate should be executed at the same time. Generally speaking, a living will merely states your desires about life prolonging treatment when you are considered terminal, while a health care surrogate makes medical treatment decisions for you if you are unable to make them for yourself.

Organ Donations

Many people die each year while waiting to receive an organ transplant. While in recent years the supply of donated organs has increased, the number of transplants performed has also increased. Unfortunately, there is still a great shortage of donor organs.

Some individuals simply do not make their wishes to donate their organs known. Others may believe their religion does not allow for organ donations, and cite a religious reason for not electing to donate their organs. Most religions permit their followers to donate their organs to allow another's life to be spared. If you have questions on these issues, check with your religious leaders. If you decide to donate your organs upon your death, you need to make your wishes known to others and note this on the back of your driver's license, following the proper procedures for your state.

money, bills, advance directives, wills, organ donations, healthcare surrogate

Crisis Management Series
Consumer Tips For Dealing With Disaster
Dr. Jo Turner, Professor, Family and Consumer Economics

When disaster occurs the following 11 tips can help you keep your balance and protect your future.

Tip 1: Don't Panic! Stay in control.

Remember you have survived other disasters and you probably will also survive this one. As calmly as possible assess the situation and take appropriate action.

Tip 2: Practice prudent consumer behavior.

Use good judgment in making decisions. Many people lose money by turning their investments into cash in a panic and buying high-priced "survival" and protection items. Panic buying can be costly. Before buying items such as a gas mask, a year's supply of food, or a gun in response to a specific risk or emergency ask yourself, "Just when, where and how will I use this purchase? How will it help me? And how will I store it?"

Tip 3: Avoid con artist and gougers.

During hurricanes or tornadoes the price of items from ice to generators may more than triple. Watch out for these opportunists and choose not to be a victim.

Tip 4: Be a good citizen.

Report price-gouging, con artists, and anyone who behaves in a suspect manner to the appropriate authority, such as: local police, Attorney General's office or Department of Agriculture and Consumer Services.

Tip 5: Manage credit wisely.

Credit is one way many Floridians manage emergencies. Keep credit card and debt balances below the maximum. By keeping the limit below the maximum, you will have a temporary emergency fund available in the short term.

Tip 6: Know where your important papers are located.

A well-ordered home filing system is important in responding to disasters. An updated household inventory is important in a speedy adjustment to property loss. The whereabouts of insurance policies will save time and stress in dealing with any type of covered loss resulting from a disaster.

It is also vital to know where locate contracts, bank and investment information. Knowing where family members are and how to locate them is important; as well as knowing who and where family advisors are and how to locate them. If you need more information on what important papers to keep, where to keep them and how long to keep them contact your local county Extension agent for information.

Tip 7: Keep gasoline in your car.

This is standard procedure for families in remote areas of the state. Keep at least 1/4 of a tank of gasoline at all times.

Tip 8: Review and update insurance policies.

It is a good practice to review your insurance policies on a regular basis. If your family situation has changed, review your coverage for life, health, and disability insurance. Do you need more or less insurance? Do you need to change beneficiaries? Check property insurance to ensure that your property is adequately covered. If you have an old car you may want to reduce coverage. Yet your "old" house may have increased in value and need more insurance.

Tip 9: Review and update your will and other property transfer documents.

Data show that only one out of four have a personal will. Remember if you don't make your wishes known about the disposition of your property, through properly executed transfer documents, the state has specified what will happen to your property. Many people will not have a problem with the first line to inherit but the problem comes with the second and third line to inherit.

Tip 10: Review your living will.

If you do not have one you may want to consider writing one. A living will is a written statement indicating that the signer does or does not wish extraordinary medical measures to be taken if he or she has no reasonable expectation of recovery. Living wills must conform precisely to laws in the state of the signer's residence. Hospitals routinely ask patients if they have a living will or if they want to write one.

Tip 11: Implement a standing plan.

Develop and use a "standing plan" for your actions. A standing plan is one that you and your family have developed in the event of disasters. The plan should include:

• What to do to immediately to get to safety
• What to take with you if you have time to evacuate (papers, clothes, food, etc.)
• What follow-up actions you would implement
• Where you and your will family meet if you become separated (school, church, police department, etc.)

hurricanes, disaster preparedness, money

Good Credit Rating Helps in Emergencies
Dr. Jo Turner, Professor, Family and Consumer Economics

If you have been granted credit lately, from a department store, charge account, a home mortgage, or an automobile loan, your credit record is probably in good shape.

Yet, there could be cases where a credit record is inadequate or even nonexistent. Many older adults have slim credit files. Some have been cash only buyers for years.

Some people, especially women, may have credit information related to an account listed in a spouse's name and not in their own file.

The Equal Credit Opportunity Act specifies that all joint accounts opened after 1977 are automatically reported in both names. That is joint accounts! In addition, credit grantors must consider the record of any account held only in one person's name if the spouse can show it reflects his or her own credit worthiness.

Don't wait until a death or divorce occurs to find out if you have a credit record for yourself. This same "don't wait for an emergency" advice applies to single adults who want to establish financial independence.

To find out if you have a credit record in your name, contact one of the credit reporting agencies.

• Equifax 1-800-685-1111
• Experian 1-800-397-3742
• Trans Union 1-800-851-2674

The business of the credit bureau is to collect and store information about borrowers supplied to them by lenders. The credit bureau is a clearinghouse for credit records. It does not assign credit ratings. That is the responsibility of the individual credit grantor based on the application and information about the person in his or her credit file.

If you find you don't have a credit record, or that it is woefully lacking, here are some recommendations to help build a good credit history:

• Open a checking and or savings account. This will not actually begin your credit file, but will show that you have money and that you know how to manage it.
• Buy on credit at a local store, or get a small loan from your bank or credit union. Then repay the loan according to the terms agreed upon. This will show that you can use credit responsibly.
• If you can't get a loan yourself, ask a friend or relative with a good credit rating to co-sign. Then, pay back the money according to the loan contract.

For more information on credit contact your local county Extension agent.

money, credit, credit reports, loans

When you lose your job, the key is don't panic. First of all, your financial affairs are still in your control. The following nine guides will help you hold onto what resources you have and survive this financial crisis.

Guide 1: Talk to your family about the situation. Let family members know what decisions must be made. Talk about what is important and what is not so important.

Talking with each other helps the family share concerns. If they understand what choices are available and what actions are necessary, they will be more willing to help. Don't forget to listen to what other family members are saying and feeling. Remember, your whole family probably is upset. But each member can help the family make it through these rough times.

Guide 2: File for unemployment benefits. Take your social security card and go to the unemployment office or location nearest your home as soon as possible. They will help you file your claim. If there is a waiting period between the time you apply for unemployment benefits and the time your check begins, you may be eligible for public assistance. Also, if you are not eligible for unemployment benefits or if your unemployment benefits run out before you find another job, you may be able to get public assistance.

Guide 3: Evaluate the ways your family uses money. Many times people buy things, not because they need the things, but because they want to spend money. Now is the time to tighten the purse strings and eliminate needless spending. Do you see yourself in any of the following examples?

• Do you have a "get even" philosophy? In other words, do you feel you deserve to buy something for yourself just because someone else gets something new?
• Do you buy things you don't really need now because you think, "tomorrow it may cost even more?" Or because "we might be even less able to afford it later?"
• Do you use money to bribe or reward others? Or do you withhold money as punishment?
• Do you spend money as a way to work off frustration or to relieve boredom or anxiety?

Now is the time to abandon these self-defeating spending habits! One of the most difficult things about being unemployed is to realize you cannot spend the way you did before. Pretending to yourself and to others that nothing has changed will not make things easier. Spending less is a must.

Talk about what your family really needs and what they would like to have. Put off buying what you would like to have but do not need now.

All fixed expenses, such as rent or mortgage payments, installment payments, insurance premiums, and other payments due on a specific date must be paid. Cutting out waste and unnecessary purchases can reduce other expenses, such as for food, clothing, and recreation.

Guide 4: Take a financial inventory. Look at what your family now owns. A few minutes spent calculating your family's net worth just might boost your spirits. Add up the total value of all your belongings and subtract from that total the amount you owe. Remember to figure the value of everything at today's market prices, not the price you paid for it. In other words, how much could you sell it for?

Guide 5: Find ways you can cut corners. To do this, you must know exactly how much money you have coming in and going out each month. Use all your check stubs and receipts to list your fixed expenses (housing, insurance premiums, taxes, installment payments, and other debts). Then estimate what you spend on food, clothes, school, gifts, and other expenses. You may find that you don't have a clear picture of where the money is going. If that is the case, try the following plan:

• Cut down on your spending.
• Make a list before going shopping and weigh the importance of each item before buying.
• Write down everything you spend money on for two to four weeks.
• Reduce the number of shopping trips you make.
• Plan ahead for big bills, such as insurance payments.
• Agree with your family that every purchase over a certain amount, say $50 or $100 will be brought to the family for discussion before buying.

Guide 6: Talk to the people you owe money to. Don't ignore bills or you may lose what you already have. Immediately contact your creditors: the finance company, bank, credit union, and department stores. Make an appointment to explain your problem. Here are some solutions you and your creditors might work out:

• Make smaller payments that you can afford for a short period of time.
• Refinance your loan. You can make another contract for smaller payments over a longer period of time. The new payments will be smaller, but the overall cost for the loan will be larger.

If all else fails, consider a consolidation loan. You can take out one loan to pay off all your bills at once. Then you will have just one debt to pay off to just one creditor. Each payment will be smaller, but you will commit yourself for a longer period of time, usually at a higher total cost.

Don't forget to work out a way to handle your monthly mortgage payments. If they are too high for you to pay, go to your lender and explain. Ask the officer in the mortgage-lending department to permit you to pay only the interest for a certain period of time. Or perhaps you can postpone one or two payments until you have pulled yourself out of your financial crises.

The important thing is that you talk with your creditors about your problem and come to an agreement about what you can do and keep from losing what you have.

Guide 7: Examine your insurance policies. Chances are that you were insured under your former employer's group health plan. If you were, the Comprehensive Omnibus Budget Resolution Act (COBRA) of 1985 provides you the opportunity to continue group health insurance for up to 18 months after you have been laid off. You will need to apply for this. You will have to pay the premiums but you have 18 months to find other insurance. If your former employer provided you with group accident and life insurance you will probably have a 30-day period from the day you left the company to reapply for an individual policy with the same insurance company without having a medical examination. The premiums for an individual policy will probably be higher than the premiums you paid for the group policy. But you need insurance now perhaps more than ever.

In many life insurance contracts there is a so-called automatic premium loan clause. This clause says the company will use your dividends to pay your premiums or will deduct the premium payments from the cash value of your policy. Check your permanent life insurance policies or call your agent as soon as possible to see if you have this clause.

Guide 8: When you need cash, you may need to decide whether to withdraw some of your savings or to make a loan. What you decide will depend on your individual circumstances, but there are disadvantages either way.

• When you take money from your savings account, it will no longer earn interest.
• If you take out a loan, you will pay interest for using someone else's money.

One solution might be a passbook loan that is a loan against your savings. You'll lose interest on your savings account and pay 1-1/2 to 2 percent interest in addition, but the total cost might be less than the interest charged for another type of loan.

If you decide to withdraw money from your savings account, take the money from a regular account first and leave any certificates of deposit untouched. You'll lose interest (early withdrawal penalty) on the certificates if you cash them in before they mature.

In any case, think very carefully about taking on additional debt while you're unemployed.

Guide 9: If you find you need outside help, turn to social agencies. Several programs, such as Food Stamps and Medicaid, are available for families needing financial aid.

Contact the Department of Children and Families' Food Stamp Office of to find out if you are eligible. Your family's resources and family income determine eligibility.

When you apply for the Food Stamp Program, take with you your rent receipts or housing payment book, utility bills, proof of medical bills (doctor, hospital, etc.), and proof of income for all working members of your household, including all benefits such as Social Security and public assistance, bank books, or any papers showing what you have in savings.

Summary

Remember, if you lose your job for whatever reason:

• Don't panic. You can still control your financial situation, if you plan carefully.
• Communicate. Analyze what is important and, as a family, decide on a plan of action.
• File a claim for unemployment insurance right away. You may be eligible for assistance or Food Stamps, as well.
• Don't default on payments. Go to your creditors, explain your situation, and work with them to make adjustments.
• Be prepared to change your standard of living, at least temporarily, so you don't have to give up essentials.

unemployment, money, stress, financial, bills

Dr. Jo Turner, Professor, Family and Consumer Economics

Financial stress is a common malady afflicting every household to some degree. If you're not complaining about the high price of food, shoes, or airline tickets, you're just out of step with the world today. Unemployment or inflation and its impact on family income are such accepted topics of conversation that you can strike up a good discussion anywhere, anytime, even with perfect strangers.

You can recognize financial stress by the pressures it imposes on your family.

• You worry over bills, especially ones that are overdue, interest on revolving credit accounts keeps pilling up when you only make small payments on bills.
• You worry over not being able to buy everything you want, especially if your children have to do without the things they want, the things other children have, or the things you want them to have because you never had them as a child.
• You worry because you can't save any money. Every family should have a savings plan, shouldn’t they? But, you put off saving until later.
• You feel social pressures because you can't keep up with the neighbor's lifestyle, as well as the economic pressures of creditors or bill collectors.
• You may have family tensions leading to arguments -- husband vs. wife, parents vs. child. You may get flak from your in-laws.
• Even headaches and high blood pressure may result from these financial pressures.

Financial stress can be defined as a condition that occurs whenever income is less than desired outgo. If you are a victim of financial stress your only solution to the problem is to balance income and outgo. This balancing act can take two forms (1) either increased income or (2) decreased desired outgo. You do have a choice, but only in the long run if you are now deeply in debt. Debts you owe must be paid out of present and future income. Can you reduce your debts in the future? To reduce your debts in the future, it may be necessary to reduce your expectations for your style of living. Are you willing to make that choice?

• When you have done everything possible to increase income, such as getting another job, putting another family member to work, working longer hours, getting a raise, or getting higher returns on investments;
• When you've stretched your income through better buymanship -- planning ahead, buying only at sales, comparing prices, using coupons and refunds, buying only quality merchandise, and using it properly;
• When you've substituted every other resource -- your time, energy, skills, and abilities for money and still feel pressure,

You may be ready to look at your basic lifestyle and decide to get just as much out of living but without the need to buy, buy, buy.

Living a simpler lifestyle requires planning, decision-making, and more cooperation among family members. But it can result in a calmer, happier family life, and a feeling of greater value from the money you spend. It won't occur unless you take some special steps to identify why you can't live within your income, and unless you make changes that will put less demand on financial resources. And, it won't occur unless you have the personal strength to stick with the decisions you have made.

Many ideas are available for coping with financial stress. Magazines, newspaper and other media all suggest ways to save money while shopping. A simpler lifestyle might require that you not make certain purchases at all. And, if your desired outgo is reduced you may be able to balance it with your income.

Consider the following tips to help you reduce outgo:

• Think about the basic values you believe in, and define them for yourself. You might even write them down, and discuss them with other family members to see if they hold the same values. If health is a value you believe in, should you buy products to consume that would not provide better health for each family member? If integrity is another of your values should you make debts you may not be able to pay? Put each of your buying decisions to this type of test -- will buying and using the product or service help you live by the values you profess?
• When you consider buying a new item think about what you already have. Especially in buying appliances, do you have to have every new appliance on the market? Do you already have something that does essentially the same thing? Apply this thinking to each purchase. Ask yourself this question, "What do I already have that could serve the same purpose?"
• Be aware that certain purchases require upkeep; maintenance or accessory items that continue to drain the family budget.
• Are you willing to learn new skills to provide for family needs?
• Do you have the courage to say, "We can't afford it" to some purchases?

bills, financial, stress, money