Court TV Host: Chat live online with personal finance guru Suze Orman about living wills and durable power of attorney, topics that have gotten intense interest since the controversy over Terri Schiavo. How should you go about making your wishes known, in case you are unable to later on? Chat with Suze Orman, author of The Money Book for the Young, Fabulous and Broke, about living wills, and another topic she just spoke about on Catherine Crier Live, the proposed new bankruptcy law... and take a look at her website at www.suzeorman.com

Court TV Host: Welcome, thanks for being our guest today.

Suze Orman: Feel free to ask any question you want of me -- you don't have to limit it to the topics we discussed on the show!

Question from kiara: Welcome Suze thanks for the chat...what is the difference between a living will and a directive order?

Suze Orman: A living will and an advance directive are technically the same thing. Living wills came about years ago, and they're not as technically detailed as an advance directive. So you can think about it as an updated and newer type of living will that is more complete.

Question from Anne: Why are you defending deadbeats and criticizing the bankruptcy bill?

Suze Orman: I'm not defending deadbeats, but if you knew your facts you'd know that the main people who are declaring bankruptcy are the people who have suffered a medical mishap, so if that means that the few deadbeats who are declaring bankruptcy for not honorable reasons, get to do so, so be it. It's all so that those who really need to claim it, those who have already suffered a serious loss physically speaking, don't have to suffer a devastating financial loss as well. That's why.

Question from ally_oops: Welcome to CTV and thank you for chatting with us today. At what age would you recommend to get a living will?

Suze Orman: Right now. Absolutely, right now. There are many cases when a child is hit by a car, teenagers -- at what age do you need a living will? From the moment you are born. So if you're reading this, you need one. And you can go to my website to do it free -- right now: www.suzeorman.com

Question from Trish: Do living wills also direct finances?

Suze Orman: No, they do not. They have nothing to do with finances. What you need, if you want someone to be in charge of your money for you, in case of an incapacity, you need either a living revocable trust, that has an incapacity clause in it, or a durable power of attorney, for your finances.

Question from kiara: Welcome Suze...what advice would you give to today's 30-somethings in the workplace with regard to social security?

Suze Orman: To ignore it. Your goal should not be to one day retire and at that point in time to be dependent on social security. Social security is in serious trouble and I doubt very much that any of the solutions on the table will come even close to fixing it, so therefore you're going to have to figure out how to fund your own retirement yourself, which is why I wrote the new book, The Money Book for the Young Fabulous and Broke. Get a copy of it.

Question from ally_oops: Since every state has different rules for a living will, should you update your living will every time you move to another state?

Suze Orman: No. The living will, what I am calling the advance directive and durable power for health care, that is on my website, for free, is good in all 50 states, so therefore it does not matter where you were when you created it or where you may be when you need it. If you're not sure that yours is that comprehensive, use mine and replace the one you have.

Question from tara: Suze, if you have a living will, isn't it best to have it notarized and presented to admissions when going to the hospital?

Suze Orman: Absolutely, the truth is your doctor should have a copy of it before you are ever admitted into a hospital, but again, let me reiterate that a living will is NOT enough. You need a durable power of attorney for health care.

Question from Amber: Can you recommend resources on how to start a budget for a young family with no savings?

Suze Orman: You start by spending less on unnecessary interest expenses. I have found that many of what I am calling YFBers (young fabulous and broke) are paying higher interest on credit cards than they should be paying: higher interest on car loans, and higher interests on mortgages when they get around to finally being able to buy a home. So the key to being able to save money is to not spend money that you don't need to be spending on these interest charges. A high FICO score is a necessity for lower interest rates. Check your FICO score, make sure it's above 720, and that's how you start paying less, and being able therefore to be able to save more.

Question from InfamousM: What is your position on videos for wills?

Suze Orman: You have to be very, very careful when doing a video will, because in most cases they will not stand up if any of the beneficiaries were in the room, or if it wasn't done absolutely correctly. So I think you're still far better off doing a written will, and a living revocable trust, than videotaping anything.

Question from Sharon: I have $200,000 in medical bills, my credit otherwise is great, but I'm beginning to receive court summons. Is it wise to dump my good credit to get rid of the medical bills as I surely cannot afford to pay them?

Suze Orman: If you know without a shadow of a doubt that you are never going to be able to pay these then I do not have a problem in a situation such as yours, for you to not care about your credit, and to alleviate that kind of debt by claiming bankruptcy. With that said, you better claim bankruptcy tomorrow, or you will not be able to -- how sad is that?

Question from ally_oops: Who should all you distribute copies of your living will to?

Suze Orman: Your doctor, your agent, the person who is going to make a decision for you besides the doctor, family members, and of course, you should keep a copy as well.

Question from Anne: Creditors don't deserve to get paid?

Suze Orman: Are you saying that people who fall ill don't deserve to have a life without being in financial prison, simply because they got ill? Is that what you're saying?

Question from ally_oops: what if you want to cancel a living will?

Suze Orman: You just do a restatement of it, and create a new one.

Question from ally_oops: Should you discuss your living will and give a copy to your physician to make sure he agrees with your decisions?

Suze Orman: Yes, because if your doctor does not agree with your decision, chances are he may become on e of the 65% of all doctors who do not follow instructions, which is why, in addition to a living will, you also need a durable power of attorney for health care.

Question from JUSTICE: Do you think Bush's plan will work for social security?

Suze Orman: No, I am very sorry, I do not think it will work.

Question from Row: Hi Suze, given all the possibility about the housing market bubbling over, does it still make financial sense to buy a place at this point? I am not really looking to make money off the real estate, but I just want to avoid owing money when time comes when I do have to sell the place.

Suze Orman: If you want to avoid owing money when it comes time to sell, do not, and I repeat do NOT, buy a home if the only way you can afford it is to do an interest-only loan. For if you do an interest only loan, there's a better chance you'll owe money when you go to sell it than you'll make money.

Court TV Host: Any closing thoughts?

Suze Orman: My closing thoughts are this: so many topics, so many things that are necessary for you to take action on, right here and right now. You have to have an advance directive, you have to have a durable power of attorney for health care, you have to have plans of action to be able to support your family, yourself, by knowing your FICO score, knowing how to increase them, knowing how to finance what you want to buy, so you end up making money, not losing it. The answers are out there for you. Just find them. I hope you found this all beneficial.