The passing of a loved one is an emotional time, and family members are often dealing with their grief in different ways. If left undecided, the many legal and financial choices families have to make after the death of a loved one can be an additional emotional drain on their already overwhelmed minds. Larger families can often suffer an even greater burden as they must make decisions that involve many parties — choices that can sometimes lead to arguments or even major fights.
Making end-of-life plans ahead of time can help prevent much of the stress that comes with the financial and legal aftermath of a loved one’s death. Taking the following six steps now, as recommended by the financial experts of Kiplinger Advisor Collective, can help ensure your family is taken care of in the event of your passing and are allowed to grieve without any additional burdens.
Discuss end-of-life wishes with your family early and often
“Start talking to your family early about end-of-life wishes, and continue the conversation throughout your life as circumstances change. Bring up estate and end-of-life planning in low-stakes situations to normalize them and make it easy for anyone to ask questions. As you clarify your wishes, keep a running list, and talk with a financial planner and legal adviser to ensure they’re carried out.” — Dana Miranda, YOU DON’T NEED A BUDGET
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Inventory your property and assign it to an heir
“Create a home inventory of your personal property and assign it to an heir. Digital home management tools can itemize everything in your home. This first helps with home insurance to make sure you are properly insured. One extra step assigns it to an heir, which becomes part of your estate plan. This is important for items of value and sentimental items to eliminate family struggles around who gets what item.” — John Bodrozic, HomeZada
Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives. Learn more >
Set aside money for funeral expenses
“Yes, you need a will, but what about your remains? With a funeral costing around $8,000 in the U.S., you can save your loved ones stress and money if you’re clear about what you want and set aside enough money to cover the expense. You don’t want your heirs trying to decipher your wishes based on previous conversations, and you definitely don’t want them paying for your funeral after you’re gone.” — Howard Dvorkin, Debt.com
Create a comprehensive estate plan
“They need to create a comprehensive estate plan that includes a will, a trust and clear beneficiary designations for all assets. They need to make sure that the trust also gets funded correctly. Creating a list of important key contacts and the location of important documents can also be incredibly helpful to their family members.” — Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
Get end-of-life decisions in a writing or personal directions letter
“Get professional advice to create and fund an estate plan that designates who will make decisions for you financially and medically. Plan to minimize estate tax. Include your end-of-life decisions in a writing or personal directions letter. The medical directive only indicates if your life is to be prolonged by machines. A writing can ensure that your doctors and/or family will not litigate.” — John Goralka, The Goralka Law Firm
Support family members with investments, funds and full understanding
“Establish a comprehensive estate plan and set up income-generating investments or funds to create a legacy that supports loved ones financially. Share clear instructions and involve family members in understanding the plan, empowering them with financial literacy and peace of mind for the future.” — Dr. Clemen Chiang, Spiking
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The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
