The aftermath of death often brings a whirlwind of confusion and disorder, but it doesn’t have to be this way. With some forethought and preparation, you can significantly reduce or even eliminate potential problems. Here are seven simple steps to help you avoid chaos and ensure your legacy remains untarnished.
1. Clearly Document Your Wishes
Assumptions can lead to misunderstandings and disputes. For instance, you might think, “Everyone in my family knows that my classic car should go to my nephew.” However, unless this is explicitly stated in your Will or Trust, it may not happen. To avoid any confusion, put your wishes in writing. If needed, send an email to your family or use a digital program to document your intentions.
2. Acknowledge Perceived Unfairness
Fairness can be subjective. As the planner, you might recognize that your decisions could be seen as unfair by some. For example, one heir might receive more due to having a
special needs child. Acknowledge this discrepancy openly to prevent potential contests. Communicating the reasons behind your decisions can help others understand your intentions and reduce conflict.
3. Assemble a Trusted Team
Ensure you have reliable individuals who can help your loved one posthumously. These trusted individuals should know where your important documents are stored, whether they are physical or digital. This team will play a crucial role in executing your plans smoothly.
4. Regularly Update Your Plan
Don’t wait a decade to revisit your plans. Life is full of changes, and your legacy plan should evolve accordingly. Review and update your Will, Trust, and other directives at least once a year to ensure they reflect your current wishes and circumstances.
5. Establish Legal Documentation
At a minimum, create a legal Will. Ideally, you should also have a legal Trust and Advanced Health Care Directives in place. These documents provide clear, unambiguous instructions that can prevent uncertainties and legal battles. Written words in black and white leave no room for grey areas of doubt.
6. Share the Locations of Valuables
Avoid hiding valuables in obscure places unless you want them discovered by a stranger decades later. Inform trusted individuals about the location of important items.
7. Secure and Share Passwords
In today’s digital age, passwords are essential. They grant access to financial accounts, social media, and other critical services. Have a secure method for sharing these passwords with your trusted individuals but avoid storing them in unsecured electronic devices. This way, your survivors can access necessary information without facing additional challenges.
By following these seven steps, you can bring order to the chaos that often follows death. Thoughtful preparation today ensures that your legacy is honored and your loved ones are spared from unnecessary stress and conflict.
Ian Goldey, the author of this article, brings over three decades of experience as a private wealth manager, assisting families with their financial planning. He has applied this extensive knowledge, along with his partners to create WhenIDie.com, a digital platform that simplifies the entire process of death planning and more. Try it free for 30- days. Apply this code 2024BLG15 for a 15% discount!
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The information provided in this blog is for general informational purposes only and is not intended to be tax, legal, or financial advice. Readers should not act upon this information without seeking professional counsel tailored to their individual circumstances. While we strive to ensure the accuracy and reliability of the information presented, we make no representations or warranties regarding its completeness, accuracy, or current applicability. The use of this blog does not create an attorney-client or accountant-client relationship. For personalized advice, please consult a licensed attorney, tax advisor, or financial professional.