1. Make or update your will. A will allows you to determine what
happens to your money and possessions and who becomes the guardian of your
children when you die. If you die
without a will, the state will make those important decisions for you.
2. Make a living will. A living will enables you to determine your
medical destiny in the event that you are so ill that you cannot voice your
wishes yourself.
3. Create a letter of instruction. With this document, you can effectively
articulate your funeral wishes, where your important documents can be found,
and the names and phone numbers of people to contact in the event of your
death.
4. Calculate your net worth, including life
insurance proceeds. List all of
your financial assets. Make sure you
include your account numbers as well as pertinent information about your
investments, bank accounts, and insurance policies.
5. Establish a trust. A trust is a legal entity which allows a
third party, the trustee, to handle financial matters for your minor children,
after you and your spouse have passed away.
6.
Consider funeral preplanning.
Determine how your remains will be disposed of upon your death.
7. Buy or update your life insurance. Life insurance provides your loved ones with
an immediate source of cash that is exempt from federal and state income tax
(but, in general, not estate taxes). It
is important to review your beneficiary designations and coverage amounts every
two or three years to ensure that your policies accurately reflect your needs
and wishes.
8. Consider buying health/medical insurance. There are 3 major types of coverage that
help protect and stretch your assets:
(1) Long-Term Care:
enables you to cover the cost of long-term health care in your home or
at a long-term care facility;
(2) Major
Medical: protects you against the
ever-rising cost of medical care; and
(3)
Disability: helps protect your
income if you can no longer work.
9. List the location of valuable documents. Your list might include deeds, car titles,
military records, birth and marriage certificates, divorce decrees and estate
planning documents.
10. List your personal data. This might include your Social Security
number, driver’s license number, VA claim number, date of birth, and the names
and phone numbers of family members.
11. Make arrangements for access to your
safe-deposit box. In many states,
safe-deposit boxes are closed upon death and are not opened until probate. Make sure that copies of your will and other
important documents are available outside your safe-deposit box.
12. List loan payments. This should include credit cards, mortgages,
consumer loans, automobile loans and other personal loans.
13. List the location of tax records.
14. Provide a family member or a close friend
with the location of confidential or valuable items you have in
safekeeping. Also tell that person the
location of spare keys and security codes.
15. Provide the name of your veterinarian and
care instructions for pets.