Final Act of Kindness
This article was written in collaboration with Katie Clemm, Esq from Clemm & Associates. They are a law firm who work with families and individuals providing for estate planning needs. Katie also happens to be my lovely wife.
I know I talk a lot about death in my articles but unfortunately it comes with the territory when working in estate planning. I look at death planning as a way to care for your family after death. Losing a loved one is very difficult so doing anything to make your loss less stressful is a pure sign of your love for your family.
One of our neighbors was unfortunately cursed with a life ending disease that gave him only a few months to live. In the face of extreme adversity, he did one of the most thoughtful and selfless things I had ever heard of and so I decided to incorporate it into my best practices for clients where possible. He made a step-by-step, prioritized list of what his surviving wife would need to do after he passed. I consider him a hero for what he did for his wife because losing him was devastating for her, and giving her guidance in that tough time let her focus on grieving rather than a sense of helplessness from having to deal with certain financial aspects of her life while being without her life partner.
This list can be helpful at any life stage because anyone could become incapacitated or even lost at any moment. This list also helps you get a good view of your impact on your family and should make you feel better about how you care for your family. See just a few examples of what to include in your list below.
View this list as what instructions you would provide your surviving spouse if you were to suddenly pass. I have prioritized this list to reflect items that should be completed soon after death to prevent future issues.
Prior to death, execute a will and power of attorney/healthcare directive
The power of attorney and healthcare directive allows your attorney-in-fact to act on your behalf and follow the instructions in your healthcare directive should you be unable to do so yourself because of incapacitation.
The will provides instructions regarding your assets and also identifies important individuals such as an executor, trustee, and guardian (if you have minor children) who will be involved in the administration of your estate.
If you do not have a healthcare directive, you may be put in a “Terry Schiavo” situation where your family is at odds over whether to keep you alive in a vegetative state, and as a result, your family suffers intense emotional trauma. To avoid this situation, it is best to have a list of directives so that your family understands your wishes.
If you do not have a will, an administrator or administratrix will need to be appointed to administer your estate, and it will be much more difficult to determine what you actually wanted to do with the assets of your estate. There is also the possibility that unknown heirs come out of the woodwork attempting to claim what is theirs from the estate. Even if those claims are baseless, your surviving spouse will have to expend time and money fighting those claims. If you have a will, it is far less likely that this situation will occur.
Obtain death certificate
Most of the steps below will not be possible without proof of death.
Make arrangements for the funeral
Prior to death, you should indicate to your spouse (or other person who will be handling your funeral) what is important to you in terms of funeral arrangements (e.g. cremation, open-casket, songs, location, etc.). You can also include these instructions in your will. Having these instructions available will be a great help to your surviving spouse in making very difficult and emotional decisions.
Contact executor and attorney
Whoever is named as the executor in the will should contact the attorney who will be handling the Estate. Sometimes a decedent will direct the executor to use a certain attorney for estate administration in the will, but if not, the choice is up to the executor. If the executor cannot and/or does not want to perform his or her duties as executor, the successor executor who is name in the will should take over those duties. If there is no successor executor named in the will, the next surviving heir is usually the person who will be named as executor. Contact an attorney if you have any questions regarding who should be named as executor.
It is best to use an attorney for estate administration; however, in cases such as a small or very straightforward estate, you may be able to get away with not using one. If this is the case, once the executor probates the will (i.e. is appointed as executor through the Court), the Court should provide a list of instructions to the executor with a timeline. Make sure to follow the instructions and timeline provided to you by the Court. If there are any questions regarding these instructions, it is best to contact an attorney.
Cancel social security payments
Any payments provided to a deceased person will be recouped by the social security administration. You should contact them immediately to stop the payments and review your options as a survivor.
Call insurance broker for life insurance claim
This money will be useful to pay for funeral expenses and living expenses if there is a drop in income.
Use this money wisely to pay off major debts so you aren’t saddled with highly monthly expenses. Consult your financial planner to decide where it could be most useful.
Contact deceased spouse’s employer
The decedent could have employer sponsored life insurance and the company will need to stop paying their salary.
If the decedent was a small business owner, there should be a business continuity plan for emergencies such as this.
Transfer car titles to your name if you are the sole beneficiary of your spouse’s estate
Eventually you may want to sell the car(s). When you decide to sell, it will be much easier to do so if title is solely in your name.
Also transfer the car insurance under your name so the car remains covered.
Contact investment manager or custodians of investment accounts
There should be a will, beneficiary (retirement accounts) and transfer on death (taxable accounts) forms, and other documents dictating where these assets should go. Call your financial planner or advisor so they can help walk you through what needs to be done.
Compile a list of assets
Prior to death, you and your spouse should list all of your assets and where to find them (e.g. investment accounts with which bank(s), stocks and/or bonds and whether they are paper or electronic, safety deposit boxes and their location, cash, and other physical valuables). This list will ultimately need to be provided to the executor or attorney who is handling the estate and will also streamline the administration process.
Cancel all auto-pay accounts that you don't use or want anymore
Both you and your spouse should write down and periodically update a list of subscriptions that could be cancelled so that your surviving spouse can cancel those subscriptions. Your surviving spouse most likely won’t need your golf magazine or wine of the month club subscription anymore.
Give all passwords to online accounts prior to death
Giving easy access to your accounts will make this process simpler. LastPass is a great way to secure and share your passwords within your family. You could also use an old fashion book to keep track of these but no matter what you use, you should keep a record.
Consolidate bills
Prior to death, you and your spouse should compile list of bills that need to be paid in a timely manner. Transfer all these bills to your name so you can track when they need to be paid.
Instructions on how to handle the chores you covered in the home
Prior to death, if you think some chores are outside of your surviving spouse’s capabilities, leave contact information of someone you trust to handle this work. You don’t want the house to fall apart due to your absence.
Where you keep your prized possessions
Prior to death, list what is important to you and where it is so the right people take possession when the time comes. You’d be amazed at how fast after death people show up to claim what they believe is rightfully theirs. Further, as part of your will, you should include a list of personal property and to whom it should be distributed after your death to avoid any misunderstandings.
Tell them it will be ok -love letter
Prior to death, take some time to write a note to your spouse. Make sure they know how much you love them and that it is your hope that this list helps to take some of the burden off their shoulders as a result of your passing. This is a tough journey, so make sure they know you’re by their side every step of the way.
Katie would be happy to help with all of your estate planning needs so reach out today to get started.
Katie Clemm, Esq
484-539-1300
Fiduciary Mission
At Integritas Financial, we are committed to providing fee-only, fiduciary financial planning services that are tailored to the unique needs of young professionals, particularly millennials. Our experienced planners work with you to develop customized financial plans that address key areas such as estate planning, trusts and wills, retirement, workplace benefits, education funding, student debt, and buying a house.
We believe in transparent, client-focused service that puts your financial goals at the center of everything we do. As a fiduciary firm, we are dedicated to acting in your best interests, and we never sell products that charge commissions to clients.
Our goal is to help you achieve a stable and prosperous financial future by providing comprehensive financial planning services that are tailored to your individual needs. Whether you're just starting out in your career or you're already well-established, we can help you navigate the complexities of financial planning and create a roadmap for success.