Nobody wants to see their offspring struggle financially, relying on credit cards, cash advances, or payday loans to get by. Unfortunately, the sad reality is that many people utilize such services while trying their best to keep above water in this difficult economy. While adults are ultimately responsible for themselves, many parents and grandparents hope to create a safety net for their families should they die; after all, as parents and grandparents, the desire to protect their own is a strong motivator.
However, for many people, the simple act of talking about the death of a loved one is too much to bear. When discussions of wills and insurance policies come up, many shy away from the conversation, emotionally overwhelmed by the inevitability of the death of a loving parent or grandparent. Discussing finances when faced with the possible death of someone close is undeniably unsavory, yet, as hard as it is to discuss, it is an important discussion to have and may help one's lineage reduce unhealthy financial practices, such as payday loan and cash advance reliance.
Not preparing one's finances for death can leave family members in dire straits. Most people want to leave behind an inheritance, something to make life a little more financially secure for the next generation. The only way to do so is to confront one's finances head on, organizing finances and financial documents in case of one's demise.
Below are factors that need to be considered when making decisions about one's financial legacy.
*Beneficiary forms are vital documents to have in case of death. To ensure that your money goes to the person to whom you desire to donate, you need to verify said person's name on all beneficiary forms. Even if your will denotes a certain individual as beneficiary, if the same name is not indicated on beneficiary documents the will can be overridden and the money will be transferred to whoever is listed on said document. These documents should be updated regularly with life changes and copies should be stored in mutually agreed upon, easily accessible places.
*Life insurance and retirement policies are two primary sources of inheritance left to the relatives of those who pass away. Documents on these policies should be kept in a mutually agreed upon place so that loved ones can easily access them. Most companies have built in retirement plans, but not all offer life insurance. To financially prepare the future generations of your family, an individual may want to seek out a reputable and affordable life insurance plan.
*It is crucial that accounts are made accessible so that loved one's can access funds for funeral costs and outstanding bills. Most do not want to burden their family members with the cost of memorial services; allowing a trusted family member to access your accounts may make covering the cost of such services more bearable. Adding a trusted loved one to your account is one way to make your accounts accessible.
* A payoff plan will let your loved ones know exactly how you intend your money to be spent after passing. In this plan, you would likely indicate any outstanding loans (cars, mortgage, credit, etc.) that need to be paid off and then individuate where you'd like the rest of your assets to go. Having a payoff plan spares your loved ones the stress of trying to figure out what you would have wanted.
All of these factors should be discussed with family members and a professional lawyer prior to death to reduce the strain that death has on a family. Healthy finance practices help to make this process smoother. Keeping unnecessary debt like payday loans and car title loans out of the picture.
However, for many people, the simple act of talking about the death of a loved one is too much to bear. When discussions of wills and insurance policies come up, many shy away from the conversation, emotionally overwhelmed by the inevitability of the death of a loving parent or grandparent. Discussing finances when faced with the possible death of someone close is undeniably unsavory, yet, as hard as it is to discuss, it is an important discussion to have and may help one's lineage reduce unhealthy financial practices, such as payday loan and cash advance reliance.
Not preparing one's finances for death can leave family members in dire straits. Most people want to leave behind an inheritance, something to make life a little more financially secure for the next generation. The only way to do so is to confront one's finances head on, organizing finances and financial documents in case of one's demise.
Below are factors that need to be considered when making decisions about one's financial legacy.
*Beneficiary forms are vital documents to have in case of death. To ensure that your money goes to the person to whom you desire to donate, you need to verify said person's name on all beneficiary forms. Even if your will denotes a certain individual as beneficiary, if the same name is not indicated on beneficiary documents the will can be overridden and the money will be transferred to whoever is listed on said document. These documents should be updated regularly with life changes and copies should be stored in mutually agreed upon, easily accessible places.
*Life insurance and retirement policies are two primary sources of inheritance left to the relatives of those who pass away. Documents on these policies should be kept in a mutually agreed upon place so that loved ones can easily access them. Most companies have built in retirement plans, but not all offer life insurance. To financially prepare the future generations of your family, an individual may want to seek out a reputable and affordable life insurance plan.
*It is crucial that accounts are made accessible so that loved one's can access funds for funeral costs and outstanding bills. Most do not want to burden their family members with the cost of memorial services; allowing a trusted family member to access your accounts may make covering the cost of such services more bearable. Adding a trusted loved one to your account is one way to make your accounts accessible.
* A payoff plan will let your loved ones know exactly how you intend your money to be spent after passing. In this plan, you would likely indicate any outstanding loans (cars, mortgage, credit, etc.) that need to be paid off and then individuate where you'd like the rest of your assets to go. Having a payoff plan spares your loved ones the stress of trying to figure out what you would have wanted.
All of these factors should be discussed with family members and a professional lawyer prior to death to reduce the strain that death has on a family. Healthy finance practices help to make this process smoother. Keeping unnecessary debt like payday loans and car title loans out of the picture.
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