7 Things to Prepare Before You Die
I have never met anyone who died and lived to tell the tale. Death is imminent for each of us, and it is important to make sure that everything is squared away in case it happens. Estate Planning Awareness Week is October 15th-22nd, so take the time now to plan to take care of your estate and family when the time comes for you to leave this earth. Below are the 7 things that you need to make sure you to prepare before you die.
Will
Of course, the thing that most people think about in estate planning is writing a will. You can either make a DIY will based on online templates, or hire a lawyer to make sure that all laws and regulations are properly followed.
While making your will, you will choose an executor, or a person to handle your estate after you die. While you might want to assign your spouse to be your executor, it may be better to to assign someone else, as their emotional state will affect their decision-making. In the will, you designate who will receive what assets, as well as who will take care of your minor children.
Inventory your life
Last Will and Testament Document Ready to Sign.
Make an inventory of all the things you own and then write down who you would like them to go to in a column next to the item. Some of this will be covered in your will, but many items are too insignificant to include in a will, but are sentimental items that family members may fight over after you are deceased.
If you have any items of historical significance, make sure they are donated to museums so they can be protected and enjoyed for generations to come.
Set up a living will and power of attorney
If you become too sick to manage your affairs yourself, you will need to give a trusted family member the ability to take care of your financial and business affairs. Give someone you trust power of attorney to take care of necessary items through sickness.
If you have specific wishes if certain medical conditions happen to you, consider writing a living will. For example, if you would prefer to be taken off of life support after a certain amount of time rather than continue living as a vegetable, state that in your living will.
Square away debts, finances, etc
After death, all of a person’s belongings and debts become an estate, and it is up to the executor to sell off portions of the state to pay debts. Spouses typically take over mortgage debt, and in some states, all debt becomes community property, and spouses are required to pay off additional debts even if they did not know about them.
For more about what happens to debts when you die, check out this blog. If you have any individual credit cards or bank accounts, consider putting your spouse’s name on them so that they can have access to them as well as earn credit.
Put important documents in one place
If anything were to happen to you, your family will have to be able to take care of the everyday tasks that you typically perform. Gather all of your important documents such as your will, marriage and divorce licenses, car titles, health insurance, life insurance, birth certificates, emergency contacts, social security card, tax returns, investment documentation, etc. and put them in a safe place.
Let a trusted family member or friend know where those documents are kept. If you have a safety deposit box, let them know where the key is kept as well.
Prepay funeral services, pick your grave plot, opt for cremation, etc.
If you want a specific grave plot, if you’d like to be cremated, or if you have a plan for how your funeral service will go, square that away as soon as possible. If you can, prepay your funeral to take the financial stress off of your family (the average funeral costs about $6,500). You can put this information in your will, or make your wishes known to family members.
Take care of your digital life
We all have many accounts, social media, email, etc. that need to be taken care of if we pass away. Gather all usernames and passwords and put them in a secure place that a trusted family member can get to if the worst comes, as some servers will not allow access even to executors. Write instructions as to what you would like done with your accounts after you die, whether you’d like them deleted, memorialized, or if you’d like your obituary posted.
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Category: Family Finances
