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How to Financially Prepare for Your Death

January 24, 2022 By MelissaB Leave a Comment

 

No one likes to think about the day when you leave this Earth. It’s depressing and scary. Most of us would rather spend our time living our life. However, if you have parents or older relatives who died, you may have had the challenging task of cleaning out their homes and trying to arrange their finances. For most people, this is no easy task because the individuals never took steps to make the process easier for loved ones. If you don’t want your family to go through the same difficulty when you pass on, take these steps to financially prepare for your death.

How to Financially Prepare for Your Death

Below, you can find an end-of-life planning guide to help you emotionally and financially prepare for your death while removing any future burden from your loved ones.

Make Funeral Arrangements

Having been through the death of loved ones, I can tell you that the last thing you want to do when you’ve lost someone is to go to the funeral home and make arrangements. If you do this yourself so your family doesn’t have to, you will be giving them an incredible gift.

Create a List of People to Tell

Make a list of people you would like notified in the event of your death. Of course, that includes family and friends. But also include companies that you contracted with.

I’m currently making my list for my husband because I handle all of our finances. I have several accounts with food delivery services like Imperfect Foods, Misfits Market, ButcherBox, and Good Chop. He’d have no idea about these services until the food showed up at our doorstep. He’ll need to know how to contact the companies and stop the deliveries.

When working with my mom, I need to know how to contact some of her friends that I know of but don’t know how to reach in the event of her death. The same goes for companies like her home security system.

Names on Bills

If you have one partner who handles the money, or if you are single, carefully consider the names on your bills.

When Both Spouses Are Alive

If both spouses are alive, have both partners’ names on each bill, if you can. Then, if one partner passes away, the other partner has access to the accounts because his name is on them.

Some companies will only let one person’s name be on the account. If that is the case, make sure the spouse knows the web address to log into the account and how to pay the bill. Then the account can be kept current until you get the death certificate and can close the account and open a new one in the surviving spouse’s name.

Add an Adult Child’s Name on Bills

If you are single and have adult children, add the child’s name to your account. Then, the child can access the account if you suddenly pass away. However, only take this step if both the child and the parent have trust in one another and are both financially responsible.

Access to Important Documents

The person closest to you and most likely to handle your affairs when you pass away—your spouse or children or close family friend—should know how to access your important documents.

Keep Paperwork in One Place

How to Financially Prepare for Your Death
Open safe deposit box with money, jewels and golden ingot. 3d illustration

Keep all of your important paperwork such as will, trust, and life insurance policy in one safe, secure spot that the person who handles your affairs knows about. Some people choose to keep these documents in a bank safety deposit box. Others keep them in a safe in their home. Either way, make sure your trusted contact has the key.

List of Accounts and Passwords

Create a list of all of the accounts that you have and the user ID and passwords so that whoever manages your affairs after you pass can close accounts and pay the remaining bills. You’ll want to list the accounts for all of the services and bills that you have as well as social media accounts.

People often forget the most important passwords—those to your cell phone and computer.

Clean Out Your House

We’ve all heard horror stories of parents who pass away, leaving their children to clean up their homes. If you pass away at 80 and you’ve lived in your house for 50 years, you’ve likely accumulated a lot of stuff. Your basement, garage, and closets may be full. Your adult children do not want to spend weeks sifting through all of your belongings trying to decide what to keep, what to throw, and what to sell.

When you move into a new house, routinely go through it every year or two to throw or give away items you no longer need or that no longer work. Continue doing this throughout your life, and your children won’t face 50 years of accumulated stuff when you pass away.

Don’t Keep Secrets about Power of Attorney & Will

If you don’t want your death to cause hard feelings, be honest before you die about who you have given power of attorney to and why. You should also share what your will contains so no one is surprised after your death.

When my paternal great uncle died, his will was a surprise. He did not split his assets evenly among his children, and the members of his large family had hard feelings toward one another. Even though my great uncle died more than three years ago, the children are fractured and don’t talk to one another due to the contents of the will.

Final Thoughts

None of us likes to think about dying, but all of us will die one day. If you’re able to face your mortality, you can give your spouse and children a great gift by taking these steps to financially prepare for your death. Those you leave behind will be forever grateful for the actions you took while you were alive to make their job of closing your estate easier after you’re gone.

Read More

What to Do with a Sudden Large Sum of Money,

Reasons Why You Need a Will Even If You’re Broke,

How to Handle Financially Toxic Parents

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Insurance, Married Money Tagged With: death, life insurance, power of attorney, trust, will

How to Deal with a Person Who Keeps on Asking for Money

November 8, 2021 By MelissaB 5 Comments

Most of us know a family member or friend who is always asking for money. They may start their request with a typical line, “I hate to ask, but I have a financial situation and wondered if you could help?” If they’ve asked you many times before, they may also add, “I promise, this will be the last time I ask.” Sound familiar? If you have experienced this, here’s how to deal with this type of person in your life.

Recognize Your Role in the Problem

If you have a person like this in your life, recognize that you’ve enabled this person to feel dependent on you. You do this by lending the person money over and over again even though the person repeatedly shows that she is financially irresponsible.

I don’t point this out to make you feel bad but rather to help you recognize your role in this cycle. However, you can take steps now to end the dependency and become part of the solution rather than the problem.

How to Deal with a Person Who Keeps on Asking for Money

The first step is to decide that you won’t allow the person to take advantage of you anymore. Instead, try one of these tactics.

Firmly Say No

The next time a friend or family member asks for money, firmly but nicely tell him that you can’t lend him money anymore. Be confident in your delivery. If you say, “I’m sorry, I just can’t lend you money right now,” or “This week my money is tight, so I can’t give you anything,” you leave open the prospect of giving him money in the future, and the person will ask again next week.

You must instead clearly say that you will no longer be able to help him out financially. Then, he has no choice but to receive and understand your message. He may ask you again at a later time, but perhaps he won’t be as persistent in his request.

As you continue to firmly say no to his every request, he will stop asking. However, don’t be surprised if he becomes angry with you and perhaps even stops speaking to you for a time.

Manage Her Finances

If you’re close to the person, perhaps offer to manage her finances and teach her good financial habits. My roommate in college, Jenny, was terrible with money and regularly asked her friends for handouts. One of our friends, Simone, was studying to be an accountant. She offered to manage Jenny’s finances. Jenny happily agreed.

For six months, Simone managed Jenny’s finances. She set up a budget for her and gave her money for spending, gas, groceries, etc. Simone paid the rest of Jenny’s bills with Jenny’s money. Once Jenny got used to the system and having a limit, Simone taught her to budget her money and pay her bills herself. By senior year, Jenny was a budgeting pro and even sometimes offered to pay the tab when she was out with friends.

Person Keeps Asking for Money
Photo by Jarritos Mexican Soda on Unsplash

For this arrangement to work, you must be close to the person, and you must both trust one another. In addition, the person has to want to improve their financial situation. If the person doesn’t have any interest in managing her money, you’ll just waste your time.

Offer Him a Financial Course

If you don’t want to manage his money (which is understandable), you could offer to pay for him to take a financial course. Financial Peace University is a Dave Ramsey course that has helped many people turn their financial lives around. However, it’s not the only course available. Find one that will best resonate with the person and that you can afford to pay for.

When you make this gesture, you’re not refusing the person outright. You’re refusing to enable the person, but you’re offering to pay for a class and invest in him and his education. This shows that you want to keep the relationship strong.

Why You Should Stop Lending Money

Saying no to someone who repeatedly asks for money can feel awkward and embarrassing. However, you should say no for several reasons.

You Work Hard and Should Keep Your Money

You likely work hard for your income. Giving a portion of that money to someone who mismanages her own money isn’t fair to you. If you choose to donate the money, that’s your decision. However, if you give this person money out of guilt or because you feel bad saying no, do yourself a favor and value yourself, your time, and your money more. You’ll feel better when you do.

Avoid Spousal Disputes

The number one cause of divorce is money disputes. If you continually give money to someone in your life, chances are your spouse is not happy about this. Your spouse will likely be much happier if you learn to say no to the person. Then, you can use your money for your own family—for vacations, retirement savings, college savings, etc.

Let the Person Become Independent

You may feel bad when you say no. You may wonder how she’ll survive without the money she needs for whatever pressing emergency she has now. She’ll probably be angry with you and lash out.

However, take the time to look in the future. Imagine how much happier and stronger this person will be in a year when she is no longer looking for handouts and knows how to manage her own money. She’ll be more confident and feel better about herself. By saying no, you’re helping her grow as a person.

Final Thoughts

Saying no when a person keeps on asking for money isn’t easy. However, remember that you’re doing the right thing for yourself, your spouse, and the person who keeps on asking. When you set clear boundaries, you strengthen your relationships. If the person doesn’t understand this, you may, unfortunately, lose the relationship. If she does understand and makes changes, she’ll thank you later.

Read More

How Long Are Your Parents Financially Responsible for You?

How to Handle Financially Toxic Parents

Creative Dating Tips When Broke

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: budget, Children, General Finance, Married Money Tagged With: borrowing, borrowing money, family relationships, friends

Reasons Why You Need a Will Even When You’re Broke

June 7, 2021 By MelissaB Leave a Comment

Why the Broke Need a Will

You may think that only senior citizens need wills, but that’s not true.  People need wills as soon as they have assets they’ll leave behind or when they have a spouse or children.  Even the broke need a will if they are leaving dependents behind.

When You Don’t Need a Will

There’s one time in life when you don’t need a will—when you’re single, without children, and in debt without assets.  Because there are no assets to divide, you don’t need a will.  This would be likely if you’re in college or just out of college, living in an apartment, and have student loan or credit card debt.

Why You Need a Will Even When You’re Broke

There are several reasons why the broke need a will.

Designate Who Will Raise Your Children

If you have children, you can dictate through a will who you want to raise your children in the event that you and your spouse die at the same time (or if your spouse is deceased).  If you don’t have a will in place, the state will decide who will become your children’s legal guardian.  I’m sure you would rather choose than have the state decide.

Why the Broke Need a Will
Photo by Peter Idowu on Unsplash

You May Not Be as Broke as You Think

Another reason why you need a will is that you may think you’re broke, but you’re not.  Take the time to consider all of the assets that you do have.

Potential Assets

For instance, do you have a life insurance policy?  Even if you haven’t bought one yourself, often your employer supplies you with some life insurance.

Do you own a home?  If so, how much equity do you have in the home?

What about your belongings?  Do you own anything of value?

Do you have a retirement account?  Again, even if you haven’t set one up independently, do you have one through your employer?  If so, how much is the balance?

Most people, when they consider all of these sources, realize that they do indeed have assets.  A will helps you designate who will get those assets when you die.

If you have children, you’ll likely want the assets to go to those individuals you’ve asked to raise your children in the event of your death.

How to Create a Will

Now that you’ve decided you likely need a will, you probably think you don’t have enough money to pay for the creation of a will.  While hiring a lawyer can be expensive, you can create a will fairly cheaply by using a website service.

My husband and I created our will seven years ago using LegalZoom.com.  We answered questions, filled out the form, and then paid $250.  When we were done, lawyers looked over the document, and within a week we had our will.

Once you create a will, remember to update it as you have more children or accumulate more debts.

Final Thoughts

If you’re anything but single with no kids, then you need to create a will.  No one likes to think about dying, but we’re all going to do so one day.  It’s better to take the time now to designate who gets your assets and who will raise your children should you have an untimely death.

Remember, creating a will doesn’t have to be expensive, and your family will be glad you took the time to create one.

Read More:

  • 4 Insurance Policies that Will Save You Money in the Long Run
  • Want to Become an Early Retiree?  Here’s the Investments to Buy Right Now
  • 8 Easy, Low-Cost Fixes to Help Your Home Sell Fast
MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Children, Married Money Tagged With: broke, end of life planning, will

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