No matter your assets, everyone can benefit from end-of-life planning. A little forethought now about your estate and finances can give you peace of mind and spare your loved ones a lot of stress and hassle later, in their darkest hour.
If we do not plan and prepare our loved ones for our departure, we will leave them with a mess of financial decisions that will be difficult to manage.
In this post, we will discuss the finances of dying and the things you need to do before you die.
The Importance Of Planning
If you have surviving loved ones who depend on you for their well-being, financial planning is critical. While personal assets like jewellery and heirlooms are easy to distribute, there are more complex financial matters to consider, such as taxes, cash flow, power of attorney and delays.
Financial planning for death is a way of making sure that the wealth you have acquired throughout your life is preserved for those you wish to benefit after your death.
Gather Important Documents and Information
The first step to financial planning for your death is to gather important documents and information. The key documents include birth certificates, marriage certificates and bank statements as well as contact details for attorneys, insurance brokers, banks and doctors. Having all this information in one place makes it easier for your loved ones later.
Execute a Last Will and Testament
A last will and testament is a document that sets out your wishes for the distribution of your estate after you die. This document can be simple or complex, depending on your needs and assets.
Complete a Living Will
A living will is a document that sets out your wishes for medical treatment in the event that you are unable to communicate them yourself. This document can be critical in ensuring that your wishes are followed if you are incapacitated.
Obtain a Power Of Attorney
A power of attorney is a legal document that appoints someone to act on your behalf in financial and legal matters. This can be especially helpful if you are unable to make decisions for yourself.
Secure Your Digital Assets
Digital assets can be just as valuable as physical assets and should be protected accordingly. Make sure to include passwords, login details and contact information for your digital accounts in your emergency contact list.
Talk With Your Loved Ones
The most important step in financial planning for your death is talking with your loved ones about your wishes. This open discussion can help to avoid conflict and confusion after you die. The clearer they are on what you want, the more likely it is that your wishes will be followed.
Helping You Get Everything In Order
As Benjamin Franklin says, “by failing to prepare, you are preparing to fail”. By taking the time now to financially plan for death, you ensure that your loved ones are covered. However, this can be a challenging process. At Dying to Understand you are provided with a host of resources to help you prepare for your death. Browse their website to learn more.
