End-of-Life Financial Planning (10 Simple Things You Need to Do)

Even though you might think that dealing with the paperwork associated with your death is insane, there is still much to do.

Using end-of-life financial planning can make things simpler for your loved ones.

You may update these plans at any time in your life, or when you experience a life event, to ensure it is current.

Planning for your financial future can be challenging at any age.

But it can become even more daunting as you approach retirement or begin to consider what it means to start a family.

End-of-life financial planning is a necessary component of any plan to ensure that you and your loved ones are taken care of if you no longer have the capacity to do so.

End-of-life financial planning can help ensure that your assets are protected and that you leave an inheritance for your loved ones – not only after your death but also during your lifetime.

Many people don’t realize that there are many helpful tools available to help guide you through the process, including end-of-life financial planning tools designed specifically for end-of-life preparation.

This article covers 10 things you need to do to ensure that you get your end-of-life planning on track.

10 Things You Need to do to Get Your End-of-Life Planning on Track

1. Prepay for Your Funeral

Planning and paying for your funeral yourself is one of the best ways to save money on your funeral as well as save your family the trouble of fighting over it.

After you do this, send the details to whoever might need them to handle your death.

This might include your employer, health insurance company, bank, investment adviser, beneficiaries, doctor, or anyone else who might need to know.

Planning and paying for your funeral yourself helps you avoid the hassle of dealing with a lot of different people and paperwork.

It also helps you avoid the cost of hiring a lot of different people and paperwork.

2. Make a Will or Advance Directive

It is disheartening that about 40 percent of individuals expire without a will or a living arrangement directive, resulting in a battle between families and wasting money and time.

To protect all your effort, seek out a competent lawyer to set up your will and living arrangement directives.

Be sure to consult with a lawyer to ensure that your directives are set up correctly and meet your state’s requirements.

You could end up spending lots of money and time if you do not have a will or living arrangement directives in place.

3. Sign DNR or DNI Orders if Needed

If you are suffering, please sign the DNR and IBU orders issued by your doctor.

It will make things easier for your loved ones in the future.

If you have decided to refuse medical treatment, allow your family and friends to decide to turn off your life-support machine.

A DNR order is the best way for your loved ones to choose your care.

These orders will also help you to be declared dead in the eyes of the law, which will give your family peace of mind.

If you are suffering and do not have the strength to make these decisions, ask your family and friends to sign the DNR.

4. Create a Living Trust If Needed

You may want to use a living trust or some other type of trust to save on taxes or other funds for your family if your estate requires it. Discuss this with a lawyer.

You can also leave your estate to a charity, such as a children’s shelter, or your spouse or family members if you want to provide for them after your death.

There are a few other things you can do to ensure your family receives the funds you want them to have if you die.

5. Name Your Beneficiaries

Be clear about who gets what in your state's inheritance distribution system, because every state handles it differently.

Even if your state ranks high for estate protections, it might take years to distribute money to your beneficiaries.

Instead, write down your wishes and make sure everyone knows about them.

Keep a trust close to your family member’s heart, and have a witness sign it.

Keep a copy of the document, too.

Experts say it’s important to leave a detailed, written will so that courts know what you wanted.

The last will can also serve as a trust, giving your loved ones the power to protect your assets and continue your legacy.

6. Check Up on Your Insurance

Make sure your insurance is still valid by checking up on it regularly.

Someone can have paid for insurance using a deduction from their bank account even if the insurance no longer exists.

Check your bank account regularly to make sure that no money has been withdrawn from it without your knowledge.

If you find that you have been improperly charged for insurance, report the issue to the bank as soon as possible.

It is also a good idea to check your credit report to make sure that you have not been the victim of identity theft.

7. Get a Medical or Durable Power of Attorney

Give someone you trust authority to act on your behalf in case you become unable to do so before your last wishes are fulfilled.

Signing a power of attorney ensures that in the case of your incapacitation, someone will be able to act on your behalf.

While this is a good idea for any situation, it is especially important to have one in place for last wishes.

You never know when you might become physically unable to make decisions on your own behalf.

There are many reasons why this could happen, from a sudden health issue to a momentary loss of mental clarity.

Whatever the reason, having a power of attorney in place can ensure that your final wishes are followed.

8. Instructions for your digital assets

The average person under 70 years of age has over 160 digital accounts and one big rising digital asset is that of cryptocurrencies and NFTS.

You must outline how to access your cryptocurrencies in your will if you want to ensure that they are properly handled.

Bank accounts and other financial assets, like cryptocurrencies, are handled differently after death.

If you write an estate plan, make sure to include instructions on how to retrieve your cryptocurrency assets if you lose the private key.

9. Keep a List of Your Accounts and Property

Create a file that includes everything you own and account numbers so that your family and probate lawyer can find what they need.

Keep a copy of this file in a safe place, such as with a trusted family member or with a lawyer so that it’s easily accessible if you ever need it.

Anything you can do to prevent your will from being contested will help ensure that your wishes for your assets are carried out.

Most wills are contested at some point, so it’s important to take steps to avoid this.

10. Keep All Documents Together

Create a single file that contains your wills, insurance papers, and other important information so that you can access it if you die.

Keep important documents in a place that only you know and that is not connected to the internet.

If you pass away, your family will need to access these documents to receive your assets, pay your bills, or take care of your dependents.

Your family members must know where these documents are so that they can access them quickly if you die.

Conclusion

It's a good idea to deal with these matters before you die since your family members will appreciate it.

By preparing everything and getting all the documents together, you can make your death more bearable for your loved ones.

There are many resources available to help you plan for your financial future, including end-of-life planning tools.

Even though you might think that dealing with the paperwork associated with your death is insane, there is still much to do.

Using end-of-life financial planning can make things simpler for your loved ones.

You may update these plans at any time in your life, or when you experience a life event, to ensure it is current.

Planning for your financial future can be challenging at any age.

But it can become even more daunting as you approach retirement or begin to consider what it means to start a family.

End-of-life financial planning is a necessary component of any plan to ensure that you and your loved ones are taken care of if you no longer have the capacity to do so.

End-of-life financial planning can help ensure that your assets are protected and that you leave an inheritance for your loved ones – not only after your death but also during your lifetime.

See our personal financial planning page for more tips on managing your finances.