Have you had the “talk” with your kids? I’m not talking about the “birds and the bees” talk here. No one wants to think about the inevitable, let alone talk about it. But the fact is, all our days are numbered. It is vital to share your wishes with your families in the event of your death.
Providing a clear understanding of assets and the steps you have taken to protect them for your loved ones is vital. In this business, we see people every day that have suffered a loss and who are left behind with no knowledge of their financial state and have no clue where to begin. The pain of their loss is often more than they can bear, so don’t add to it by being unprepared.
If you have small children and/or assets such as a home, bank accounts, investments, or life insurance, here are a few ideas to help:
Work with an attorney to create a trust. The trust will dictate who will care for your children, how your assets are to be disbursed, and who is legally responsible to conduct your wishes. Have conversations with responsible parties before you name them in your trust to ensure they are up for the task. Be sure to provide copies to your family members and trustees or let them know where they can find a copy, when needed. Do periodic reviews of your trust and update as things change.
Create a single document outlining your wishes, assets, and trust details. Your document should list each asset including company/bank name, contact information, account or policy numbers, and the location of statements, titles, bonds, stocks, and any other important documents. If you have a trust, include the attorney’s name and contact details as well as the location of an updated copy of the trust. Sharing this document and having the talk allows loved ones to ask questions and get clarification while they have you here to answer. Including a general sum of your total assets provides your family with a snapshot of the financials that will need to be settled.
Bear in mind, a document such as this, is not legally binding, but rather, a helpful tool that will leave your loved ones feeling a sense of peace and gratitude at a difficult time. Be sure to review this document periodically and update as needed.
Add beneficiaries or at least one joint owner on all assets; if there is no trust, this is crucial. Be sure to add joint owners or beneficiaries on all accounts, investments and insurance policies. Do a periodic review of beneficiaries and joint owners. Make sure their names, addresses, and contact details are up to date. Remember that beneficiaries have no rights to assets while you are living, and joint account owners have the same rights to your funds as you do at all times.
By adding joint owners and naming beneficiaries, you prevent your assets from needing to go through probate, which can be a lengthy and complex process. Preparation ensures that your intentions are carried out.
Now that we have covered the “big stuff,” don’t take the little things for granted. Take a walk around the house and property with loved ones and gift them the items that matter most to them. Gifting items or money while you are living can be as much as a gift to you as it is for the recipient! Or if you prefer, create a list and leave it with all your important documents along with a little note for each recipient. This is a great way to avoid any arguments over the “stuff” when you are gone and bring some joy during a difficult time. Don’t wait to have the talk – start today.
Yours truly,
Jennifer Supranowicz "Banker Mom"