Managing financial planning decisions, such as retirement savings, budgeting, and estate planning, can be a complex, emotional, and challenging task that many people wish to delay. However, neglecting your financial affairs can negatively impact you and your loved ones should you become ill or pass away.
Keep your financial affairs in order to reduce stress and confusion for your family during an already difficult time. Here’s how to get started.
Bank accounts, credit card accounts, and more.
These three lists will help streamline the process of settling your affairs.
- Create a comprehensive list of all your bank accounts and investment institutions, including their corresponding account numbers.
- Create another list with your credit cards, utility accounts, and other financial obligations, along with clear instructions on how and when they should be paid.
- Ensure all your bank accounts have designated direct beneficiaries. This simple step can save your loved one’s time and effort in accessing funds after your death. To claim the funds, the designated beneficiary only needs to provide the bank with a copy of your death certificate and a valid form of identification.
Documents to avoid probate.
Your family must have certain documents on hand to avoid probate. Failing to provide these documents means an attorney must create an estate bank account for any funds without designated beneficiaries. The attorney must also alert potential claimants to your property by publicizing your passing in the newspaper or the county courthouse. This process can be cumbersome and time-consuming.
- Transfer on Death Deed: If you own a home, completing and filing a Transfer on Death (TOD) deed with your county can save your heirs a significant amount of money. This legal document allows you to transfer ownership of your home to a chosen beneficiary. To assume ownership, the person only needs to present their identification and your death certificate at the county building.
- Living Will: A living will is a legal document that enables you to articulate your healthcare preferences in writing if you cannot communicate them verbally. This document provides clear guidance on your wishes for medical treatment and care and ensures those wishes are followed and respected.
- Durable Power of Attorney: A durable power of attorney enables you to appoint another person to make legal decisions on your behalf. This document gives them the legal authority to act on your behalf regarding finances, legal affairs, and healthcare.
- Power of Attorney for Healthcare: Similar to a durable power of attorney but on a smaller scope, a power of attorney for healthcare is a legal document that enables you to appoint someone to make healthcare decisions on your behalf.
- Last Will and Testament: A last will and testament is a legal document that outlines your final wishes and instructions for how your property and assets should be distributed after your death. It also typically appoints an executor to manage your estate and carry out the instructions in the will.
- Funeral Planning Declaration: A funeral planning declaration is a legal document that allows you to outline your preferences for your funeral or memorial service and other related matters, such as burial or cremation, music, readings, and other personal details. The document may also include information about any prearrangements made for the funeral or related expenses.
Passwords
- Ensure at least one person knows your login credentials for sensitive accounts such as your Apple ID and bank accounts, including usernames and passwords.
Vehicle information
- Ensure you have proper documentation for all your vehicles, campers, and similar assets.
Managing your financial affairs and planning for the future can bring you and your loved ones peace of mind. Do you need help streamlining the process to ensure a smoother transition for your loved ones when the time comes? Boris Benic and Associates can help.