How to Provide for Your Family Even After You DiePosted by Laura Lenox on July 30th, 2019 Being left by a loved one is never easy for the families of the dearly departed, but it’s an inevitability that everybody would go through eventually. Some are hit harder than others, mostly when the one who has recently passed away wasn’t prepared for it, leaving the family not only dealing with the absence but also the financial void. When it comes to this end-of-life event, it’s crucial to be financially ready so that you can leave a little something for your family. This can make it a bit easier for them to deal with the loss while showing them how much you really care even after you’ve kicked the bucket. This is particularly important if they heavily depend on your income and what’s in your bank account to survive. There are a few ways to make sure your family reamins financially secure once you’re already six feet under.
Having life insurance is one of the keys to financial security once you pass on. Without one, your family might have a difficult time staying afloat if they rely on your earnings. In addition to supporting your family, the proceeds can help provide immediate cash in the event of your death for settling debts, funeral expenses, and taxes. You could save a substantial amount of money on life insurance by buying a term policy or a final expense life insurance policy, where you can cover all the basics if you were to pass away. Make sure the term is long enough, and the benefit amount is large enough to cover your family’s needs until your kids have finished college, or the mortgage is settled.
Once you have a life insurance policy, it’s imperative to put into writing the name of who will benefit from it. This also applies to all your other financial accounts, such as your retirement plan. If you fail to name your beneficiaries, the funds in your accounts will have to go through the arduous motions of the probate process. This could cause delays in getting your assets to the people who need to receive them. By naming your beneficiaries, you’ll remove the confusion, leaving no doubt about what you want to be done with your finances or insurance proceeds when you pass on. It also saves valuable time, so make sure to specifically name them, more so if you have children from other marriages.
A pension is an invaluable retirement plan, so you can still be funded after you’ve reached the end of your life as an employed professional. The good thing about this is you can transfer the remainder of your pension in the unfortunate event that you pass on. Again, make sure everything is clear and put in writing, including your beneficiaries.
If you die without a will, there are laws governing the procedure of who gets what in terms of your asset distribution. But if you die with one, you decide on who gets what. A will is vital in naming the executor of estate who will oversee the distribution of your assets. It also allows you to name a guardian for your children in case they need one, and appoint an individual to manage any funds left behind when you die. Essentially, you’ll have total control on what happens when you pass on.
A trust may seem like something only wealthy people can have, but even if you’re not rich, your loved ones can benefit from a living trust before you expire. It may cost more than a will, but the convenience of saving your family both time and money will prove to be invaluable when you die. A living trust allows your estate to bypass expensive probate court proceedings. It would be best to work with an attorney who’s experienced in setting up a living trust for a more hassle-free process. Conclusion Raising a family may be tough, but their situation may become more difficult if you leave them with nothing when you pass away. It’s absolutely crucial to secure your family’s future in the event of the unexpected, so you can still help them go through life even if you’re gone. Preparing for the inevitable is the right thing to do for your loved ones. Like it? Share it! |