Planning for Your Passing - It's About the Kids
Have you ever paused to think about what will happen after you or your spouse passes away? What challenges will your family face? Too many people fail to plan ahead until it’s too late. They leave their surviving family members with unnecessary burdens and stresses because they haven’t planned ahead for their passing. Whether it’s your financial situation or your funeral preferences, now is the best time to plan ahead.
Here are 5 simple reasons why you should plan ahead for your passing.
Reduce Stress on Your Family
After someone passes away, their surviving family faces numerous and complex decisions to make, in addition to the overwhelming grief of losing a loved one. When a loved one hasn’t planned ahead thoroughly, this increases the burden on their children. They now have to guess at what the loved one would have wanted, or search for hints among their personal effects. If you want to reduce stress on your loved ones, make planning ahead a priority.
Prepare for Financial Considerations
One key element of planning ahead is preparing for financial considerations. First, estimate how much a funeral and service will cost, and set aside 10% more than you think it will cost (to account for inflation). Next, ensure that your spouse or next of kin has their name on any bank accounts they will need to access immediately after your passing. If your name is the only one on the accounts, they may have to wait months while the estate goes through probate. This can cause real financial hardship.
Ensure Your Personal Peace of Mind
Perhaps you’ve always wanted a certain minister to speak at your memorial service. Or you may have specific preferences about how you want to be remembered. Take the time to consider what type of memorial service, casket, headstone, and burial you want. And don’t forget to write everything down to make planning easy for your family.
Create Your Financial Profile
Even though you know all the details of your financial situation, it’s safe to assume that your children don’t. Imagine that they will be walking into the situation completely blind, and gather all your key financial information into one document or notebook. This document should include the following:
- A phone tree for key family and advisors to call when you suddenly need them
- Insurance policies and account information
- Bank accounts, including CDs and GICs
- Investments, including RRSPs
- Debts, including current balance
- Any other assets or liabilities
By gathering all your financial information, you are ensuring a smooth transition for your family after your passing.
Preserve Your Digital Legacy
Have you ever stopped to think about what happens to your online accounts after your passing? If you don’t do anything to prepare, your kids may struggle to access your accounts. This can cause unnecessary headaches for them!
The smart thing to do is to keep a record of all your account usernames, passwords, and security questions. I recommend writing them down in a notebook, not on your computer. That way, they’ll be safe even if your computer crashes or you get hacked. Your kids will certainly appreciate this!
Looking for an easy-to-use resource to prepare for your unexpected passing? TheSudden Death Checklist is a comprehensive resource to help your family be prepared for the unexpected.