Before tragedy strikes, get house in order

Among the many consequences of 9/11 is a heightened awareness of the need for individual estate and financial planning. The tragic events of that day brought home both the unpredictability of life and the realization that many, perhaps most, people are woefully unprepared for a sudden disaster and the effects it can have on their families.

While the chances of being involved in a terrorist incident are remote, planners point out that earthquakes, fires, floods and other natural disasters can also have a major impact. While it is impossible to anticipate everything that could happen, thoughtful planners now agree on the importance of creating an "individual disaster plan" to provide for surviving family members.

Here are some of the suggestions that have arisen:

+Establish spousal support trusts to take care of children and surviving spouses.

+Determine where you should keep your important documents and be sure other family members know where to find them. Make copies.

+Provide for backup communication in case family members are separated by a disaster. This might include additional cellphones, multiple e-mail accounts or agreed-upon meeting locations.

+Appoint guardians for minor children. If you do not, courts may make this decision, as they were forced to in New York following Sept. 11.

+Appoint different guardians for different issues, that is, one guardian for financial and estate decisions and another for personal matters such as schools, healthcare and clothing.

+Coordinate planning documents to ensure clarity of who has the power to do what. Be sure that there is no conflict or ambiguity between multiple documents that may be activated simultaneously.

+Consider the use of "trust protectors" or committees when disaster situations call for action and there are questions as to the whereabouts or existence of settlors, trustees or beneficiaries.

+Provide your advisors (attorneys, accountants, bankers, etc.) with direct instructions as to who handles what and how they are to work together.

Your unique circumstances and desires will dictate what your plan should include. Whatever you decide, remember that responsible and prudent planning dictates periodic reviews and updates of your total plan to ensure that your goals and objectives can be carried out as you wish.

Roger Stinnett is vice presi- dent and manager of tax and fi- nancial planning with City Na- tional Bank. For more informa- tion, call (800) 708-8881.