Dealing with the death of a loved one is one of the highest stressors in life, you want to make it easier for those who need to be making decisions should you be incapacitated or die. You may have stated your preferences, but when in emotional duress, it can be hard to remember. It is an act of love to have one’s wishes clearly written and gathered in one known place to make it easier for them. You do not want health care decisions to be made by the for-profit hospital, nor for the courts to tie up your estate and distribute what is left after fees and taxes as they see fit. It is wise to hire a lawyer or financial advisor to help you with this process. What are some of the documents to have prepared?
Advance Directives enables you to make arrangements for your care if you become sick. Two common types are:
Living Will: states what kind of care you do or do not want. It can include if you want to donate your organs.
Durable Power of Attorney: the person you designate to make medical and financial decisions for you if you are incapacitated. Choose a person shares your values and is willing to do this for you. Have a backup person selected in case they are not available. Note: If you have an unmarried adult child, you may want to ask them if you can be designated to make their medical decisions in case they become incapacitated.
Accounts and Passwords Keep a list of any and all recurring (and when due) payments/debts/accounts along with social media accounts usernames and passwords, including security questions and answers.
Last Will and Testament or Trust states what is to happen to your assets. A will can go through probate to be approved, is public, and can be contested. A Trust is private, can go in effect before death, and does not require court approval. Beneficiaries can have access to what you have designated as theirs in a Trust sooner, and it can be structured to minimize taxes.
Beneficiary Designations Assets outside your will typically include IRA’s, 401(k)s, pensions, annuity, certain bank and brokerage accounts and life insurance policies, and should have a primary and contingent beneficiary. Have a list of these “governing instruments” and their beneficiaries, which should be consistent with the terms in your will or trust.
Funeral Planning Declaration You can prepay your final arrangements, e.g. purchasing where you will be buried, paying for the casket, headstone, interment cost and mortuary fees so your loved ones only need to make arrangements of the time for the services. You may want to choose readings, music, and the like.
Have one place where this paperwork is kept. Besides the above documents, have a copy of your:
Tell your Executor where they can find the documents. You may want to keep a copy with your professional advisor. Note: if you place them in a safe deposit box, if the box is registered in your name only, no one will be able to access it without a court order.
The Lord is my rock, my fortress and my deliverer; my God and my rock, in who I take refuge, my shield and horn of my salvation, my stronghold. Psalm 18:2
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