Going through a divorce is a complex and emotionally challenging process, often accompanied by significant…
What Should You Do When the Diagnosis is Just Plain Bad?
There’s no way to be prepared for a bad diagnosis, but when it happens, you still need to take care of the financial and legal aspects of your life.
Once the initial shock of a bad diagnosis has passed, says CNBC in a recent article, “When end-of-life planning is suddenly a lot closer than you thought,” you’ll need to take action so that your loved ones aren’t left with an expensive and stressful situation. It won’t be easy, but it is necessary.
One way to get organized is to set up a ringed-binder notebook so you can easily add information. This will allow you to have all the information in one place. Therefore, your family won’t stress about trying to find things.
If you don’t have an up-to-date will, make a list of your assets, such as your financial accounts, real estate and retirement accounts. You should also make a list of personal belongings and who you’d like to have them, because this isn’t spelled out in a will.
Next, be sure to designate beneficiaries on your financial accounts. Many brokerage firms allow you to attach transfer-on-death instructions to your non-retirement accounts. Transfer-on-death deeds can also be used on real estate in 27 states, including Arizona, Illinois, Indiana, Ohio, Texas and Washington, D.C. Exceptions to the use of these deeds include Connecticut, Florida, New Jersey, Pennsylvania, and New York.
You should next list your liabilities, such as your home mortgage, loans, credit card debt, and your insurance policies for health, home, and autos. Create a contact list of people your family can reach for help, like your attorney, CPA, insurance agent, and financial advisor.
If you already have an estate plan in place, it can be a good idea to consult with an attorney experienced in estate planning, if you’re hit with some dire news. That may alter some of your thinking.
Keep all your passwords in the binder. You should also monitor your pension and Social Security benefits, since there could be survivor benefits. Your binder should always include a copy of the previous year’s tax return.
Make arrangements for your pets, so that they do not end up in kill-shelters. If you own a home, create a list of all service agreements, like landscaping and utilities.
Finally, write a legacy letter, instructing your heirs as to what you would want for your funeral arrangements and how you would like your personal belongings to be distributed. Speak with your estate planning attorney to have this information incorporated into your will.
Reference: CNBC (July 18, 2018) “When end-of-life planning is suddenly a lot closer than you thought”
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