This is something we all will experience and probably have faced within our inner circle of family and friends. My father died at 56; my mother at 78. Grandparents, parents of close friends, sports heroes from my boyhood, clients – I’ve experienced all of these. How do we prepare and survive these deaths? And what are the most difficult aspects of these very personal events?
Understanding the Financial Impact of Death
The closer we feel to someone, the more love we have for the individual who has passed, the more emotionally stressed we will be. It’s human nature. We are facing a tremendous sense of loss, possible uncertainty over the future– ours and maybe the deceased persons. Often there is the potential for feeling regretful. For words not said or deeds not done.
Perhaps part of working through the grieving process includes understanding the financial impact of death. Believing that all living affected parties will be financially secure in a post death situation can go a long way toward reducing the stress. How can we best understand what occurs financially at a persons death? Like most complex questions, the answer(s) is not simple . But it is very doable.
Begin with the end in mind is where I start with my clients. A great position to be in is to be able to say what you want to have happen and what you want to be certain doesn’t happen at your passing or the passing of a loved one. Getting to that “what I want/don’t want” position is overwhelming to some people. Their personal life situation may be complicated with multiple marriages, children and step children. They may be concerned about some children(or other family members) having a greater need for help.
Those concerns coupled with a lack of education on the several topics (insurance, taxes, investments, law) that are so important to this discussion can create a feeling that this is an insurmountable task. At best they may be able to tackle one, possibly two, of these items. So once again your Trusted Advisor(s) become vital to successfully confronting death and dying financial planning.
How a Trusted Advisor Can Help
You don’t go to a Trusted Advisor primarily to get the answers to end of life planning. You go to get the questions you have no idea are relevant, maybe even crucial, to a proper plan. Together you and your advisors can get the answers, but you need to know all the questions. Let me suggest a few just to make the point:
- What do you have to pass to someone and what form is it – home, investments, IRAs, annuities, personal property?
- Who should get it? All to one person or shared? When do they get it? All at once or with some guidance and parameters that you stipulate?
- What are the significant financial implications of your answers? Taxes, investment costs, investment options and legal considerations are just a few.
- And finally for now – how do you create and maintain the myriad documentation that gives you certainty that your wishes will be accomplished?
If you or someone you know is struggling with these questions, I can help. Simply provide your contact information and I’ll get back to you.