Death is a topic many families are uneasy discussing. However, in not doing so while you are?alive and healthy you can place a huge financial and emotional burden on your loved ones. Here?are five ways for you to plan for the unexpected.
1.?? Update Your Insurance Plans
At times, we sign up for life insurance coverage five or more years prior and never think to update it to reflect our new annual salary. To help preserve your family?s lifestyle and provide enough for your funeral arrangements, your plan should have enough. Also, if you?ve gained more dependents, it should be adjusted as well for their living and college expenses. If you currently do not have life insurance, it?s time to sign up. The older you are, the higher your rates will be.
2.?? Prepare Your Last Will and Testament
A last will and testament is your authorized document stating what should happen to your?children and property, as well as who the executor will be after you?ve died. The less you have at?stake, the simpler your will be. You can go online and complete your own. A notary public?should sign off on this to make it a valid and legal document.
Using an estate planner or lawyer is advised to help you with your last will and testament if you?have a large estate. Your designated executor will handle all of your estate, including your?financial matters and property.
3.?? Meet with an Estate or Financial Planner
An estate or financial planner can create and/or go through all your important estate documents.?If you don?t have your estate set up accordingly, your property could turn over to the state if you?don?t have legal dependents. After its all setup, be sure your executor and anyone who would?benefit has a copy of it. At least they?ll have a head start in knowing how to work on your final?requests.
4.?? Make Arrangements for Your Dependents
You should have a plan set for what will happen to your minor children and adult dependents.?You don?t want to think about passing on, however, it?s a worse situation once your family?members or the court decides who should be their guardian. This is a major decision, so be sure?you are the deciding factor in the matter. It?ll be a trying time for your child, so you want them to?be comfortable with the outcome.
5.?? Make Your Wishes Known: Outline Your Service
This may feel a bit odd for you to do, but outlining or planning one?s funeral service is becoming?increasingly popular. For one, it?s the best way to make your wishes known. You can select your?flowers, pick your casket, choose your plot and more. It also helps alleviate the headaches of?your family trying to plan your service during this time of bereavement. Finally, you can have?everything pre-paid so your family does not have any financial stress should anything get held up?with your insurance policy.
Having a living will or living trust is very important for planning for the unexpected. This will covey your wishes and describe how your assets will be distributed. Also, if you have minor children, a living will coveys who will look after your children. Life insurance also helps cover final expenses or replace your income for your loved ones. Great article.