One of the important aspects of financial planning is planning for death. It may sound unkind but it is an important aspect of financial management. It is crucial to protect your family’s financial security once the earning member dies.
Death of an earning member is an important event in every family. It usually comes with emotional havoc. It can also create financial stress if the earning member dies young or could not plan proper assets distribution after the death.
“You will never find time for anything. If you want time you must make it” Charles Buxton
The planning for your death starts when you are alive. An unplanned death is the cause of litigation and quarrels in the family.
In order to help you about the things to take care of when you plan for your death, here is a list of 5 things you need to consider.
Make a list of all assets and liabilities
This is the first important first step. You need to write down all your assets and liabilities in detail. This will help you to know what you own and what you owe.
This exercise also helps you to organise your affairs in a better way. Usually, assets not documented are appropriated without your intent.
This will also help you to make a detailed Will and allocate the assets to the people you wish to allocate.
Make a Will
This is a crucial financial and family duty of everyone. This can avoid litigation, family disputes, and misappropriation of your wealth.
Having a proper Will wherein you declare your intent to distribute all your assets to specified beneficiaries can be of great service to the family members.
Inform about the Will to the close confidant. It is a good practice to register the Will.
Your Will will take care of your wealth distribution wish after your death. However, it is always a good practice to file nomination forms with your banks, housing society, mutual funds, insurance companies, and for all other assets.
This facilitates a smoother process of asset transfer.
Once you have prepared the list of all your assets now it is easy to collect all the original documents.
Keep in one place all your important financial documents, property agreements, physical share certificates, fixed deposits, insurance policies, and everything else.
Show this to your spouse, the family members who you have selected as a nominee or your legal heirs as you wish to.
Now we are living in a digital world. Everyone does some kinds of online transactions. Everyone has financial assets managed digitally.
All your online banking, share trading passwords are important. You need to be cautious in sharing your passwords with everyone in the family.
In order to protect your assets from misappropriation your passwords should be shared with someone you trust and someone you have identified to vest your wealth with.
Death comes without an appointment. It is better to be prepared because it will not give you the time to repent. Loving your family is planning your wealth.
“Life is a dream from which we all must wake before we can dream again.” Robert Jordan, The Fires of Heaven
Yes wake up to the reality and plan your death.
Share your views and experiences.