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What Your Family Needs to Know When You Die (Part 5)

January 26, 2012 By

In the days and weeks following your death, your family will be looking for information about any benefits to which you and they are entitled.  You can make this search easier for them by providing the following information for them.

  • Group Insurance Benefits – if your employer provides group life insurance, let your family know the name of the insurance company and who the primary contact person is at work.  This will probably be someone in the Human Resources (HR) Department who will be able to help your survivors file the necessary paperwork to collect the benefits provided by the group policy.
  • Individual Life Insurance Benefits – there once was a time when employees remained at the same employer for their entire working lifetime and that employer’s group benefits could be counted on to help the employee meet all of his or her needs.  That is no longer the case.  While I would never tell a person to refuse the insurance that the employer is paying for, I would also encourage that person to have life insurance that he/she owns and controls; life insurance that will stay with him/her when they are no longer a part of the group.  Once again, make sure your family knows the name of the insurance company that you have purchased life insurance from, the name of the agent from whom you bought it, and the address/telephone number of the company’s home office.  Keep the policy in a safe place (i.e., a fireproof lockbox) at home.  Many people believe that the policy(ies) should be kept in the safe deposit box at the bank; but, if the bank learns of the death before your beneficiaries get the policy out of the box, that box can be sealed until it has been “inventoried” for estate tax purposes
  • Any associations to which you belong that may provide benefits – many associations and professional organizations offer benefits to survivors as a benefit of membership.  Make certain to list out all organizations to which you belong and any benefits that your know they provide along with contact information for each one so that your survivors can easily claim those benefits.
  • Homeowner’s/Renter’s Insurance and Auto Insurance – the name, address, and contact information for your agent along with the name of the insurance company and its home office address and telephone number should be listed along with the information regarding individual and group life insurance policies

The days and weeks after your death will be a difficult time for your survivors.  You have the ability to make this time a little less trying for them by planning ahead and making certain that they know where the plan details can be found and who to contact for help in putting that plan into action.  There are few love letters that you can write to your family that will be more appreciated than the one that begins, “I know this is hard for you, but I’ve done all I can to make it a little easier for you …”

Filed Under: Financial Planning, Personal Finances, pre-need planning, what my family needs to know, what my family needs to know

What Your Family Needs to Know When You Die (Part 4)

December 9, 2011 By

The assets you listed in the last installment are only half of your personal balance sheet that your family will need when you are gone.  The other half are your liabilities … the debts you owe to others.

  • Mortgage – for most families, the mortgage on the family home will be the largest debt that is owed.  Your family will need to know the name of the mortgage lender and its address; the loan number; and, the current balance owed on the loan.  If there is more than one mortgage on the property, be sure to list any other lenders and the appropriate account numbers.  Be sure to list the monthly payment that is due on each mortgage.

This would also be a good place to list any life insurance policies that you may have purchased to provide the funds to pay off the outstanding mortgage(s).

  • Auto Loan(s) – provide your family with the name of the lender along with the lender’s address; the account number; the current balance owed on the loan; and, the monthly payment that is due.  If you have purchased any loan cancellation insurance, you should list it here including the name of the insurance company, its address, and any person with whom you regularly have contact.

You should also list here the name of the company that insures your vehicle(s) along with the name of your agent and the policy number so that the company can be notified of your death.

  • Credit Cards and Personal Loans – in a perfect world, no money would be owed on unsecured debts.  However, few of us live in “Perfect World, USA” so list all of your personal/signature loans, credit card accounts, addresses for each account, the account numbers, and a current balance on the account.  Also, indicate where you keep your current statements and balances owed on each account.

A person’s death does not wipe out any debts that are owed.  Creditors have the right, and they will exercise it, to make demands for payment against your estate.  Sadly, there are some who will attempt to take advantage of survivors’ grief and confusion to make money by making claims against the estate for debts that do not exist.  By leaving a clear inventory of debts owed, you can protect your family against these bogus claims.


Filed Under: Financial Planning, Money Management, Personal Finances, pre-need planning, what my family needs to know, what my family needs to know Tagged With: , , ,

What Your Family Needs to Know When You Die (Part 3)

November 28, 2011 By

When you are gone, your family will need to know a great deal about your personal finances.  They’ll need to know about your assets and your liabilities.  Today, we’ll look at assets.

Assets are the things you own that have value; perhaps generate income that can be used to support your dependents.  Your family will be helped tremendously if you assemble an inventory of your assets.  Consider the following …

  • Bank and Credit Union Accounts – do you have a checking account; savings account; certificate(s) of deposit; safe deposit box?  If you have any of these assets, list the name of the financial institution along with its address; account number(s); and, the name of the individual with whom you most frequently do business.
  • Stocks, Bonds, and Mutual Funds – if you have investment accounts, your family will need to know what assets your accounts hold; i.e., the names of any individual stocks, bonds, or mutual funds you own along with the name of the Registered Representative and firm with which you do business.
  • 401(k) – if your company offers a 401k … other qualified retirement plans include 403(b) plans, tax-sheltered annuity plans, and 457 deferred compensation plans … be sure to include the name of the plan administrator with the administrator’s address and telephone number; the name of the person at work who is your primary contact regarding the plan; and, a recent statement showing how the funds are invested and current balances.
  • Real Estate – obviously, the first item on this list would be your house.  Be sure to include a current estimate of the property’s value.  You can obtain a current value from a Realtor; or, do an on-line search by typing in the question “what is the current value of my house”.  Your search should yield a number of websites that will help you estimate its current market value.

The list of assets above is certainly not all-inclusive.  You may own art, collectibles, firearms, jewelry, and many other things.  Be sure to include these items in your list of assets along with their current market value.  If these items have been professionally appraised, include the most recent appraisal.

The days, weeks, and months following your death will be trying times for your family.  They will be grateful for any help you provide for them that will help them put together the financial pieces of their lives.

Filed Under: Banking, Checking Accounts, Financial Planning, Money Management, Personal Finances, pre-need planning, Savings Acounts, what my family needs to know, what my family needs to know Tagged With: , , ,