Have you thought about what will happen to your finances after you pass away? Planning for your legacy is important in preparing for the inevitable. Without proper preparation, your loved ones could be left with financial burdens and uncertainties.

Before passing away, make financial preparations to ensure your loved ones are provided for, and your assets are distributed as you intend. From creating a will to organizing your financial documents, there are several key steps to take to protect your legacy.

Here are seven important financial preparations to consider before you die.

What are the necessary steps for financial preparation before passing?

1. Establish a Power of Attorney (POA) 👨🏻‍💼

• File the POA according to state laws and share copies with institutions and relevant parties like your family.
• A power of attorney lets you authorize someone else to make legal and financial decisions on your behalf. You may need to appoint someone as a durable and/or healthcare POA.
• A durable POA lets you appoint an individual to handle your finances, usually when you are disabled or mentally incapacitated.
• A healthcare power of attorney and a living will work together to honor your medical treatment wishes.
• You may also need a Health Insurance Portability and Accountability Act (HIPAA) release authorization for your health records. This document ensures medical professionals can share your information with the designated healthcare agent.

2. Create an inventory of assets and liabilities 📋

• List all your assets, including bank and shopping accounts, investments, properties, and insurance policies.
• You can also include your social media and email accounts.
• Keep track of your debts and loans from credit cards, mortgages, or personal loans.
• Consider organizing these documents safely or sharing them with trusted family members or an attorney.

3. Update important documents 🗂️

• Review and update your will; it's the foundation of estate planning and ensures your final wishes are followed.
• You can also create a trust to protect assets from taxes, creditors, or probate issues.
• Ensure documents like life insurance policies, retirement accounts, and bank account beneficiaries are updated with accurate information.

4. Create a will 📝

• When creating a will, you (the testator) select an estate executor - a person you trust to handle the distribution of your estate.
• If you are single and have no dependents, it is important to decide how your financial assets will be handled after you're gone.
• If you're married, it's important to make a will that takes care of your surviving spouse after you pass away.
• You can also designate a legal guardian for minor children and provide care instructions for your pets.
• In the case of living wills, you can also make decisions about end-of-life care and funeral arrangements.
• Consulting an attorney is especially important if you have a complex estate or want to establish trusts for beneficiaries.

5. Update or get life insurance 📄

• If you have life insurance, ensure your coverage is sufficient to provide for your loved ones.
• If you're getting life insurance, talk to an agent about your needs and financial situation before deciding.
• Opting for whole life insurance (no expiry, fixed death benefit) is ideal for long-term dependents like a special needs child. If the policy is not utilized, you can cash it out during retirement.
• Term life insurance is ideal for covering your family's needs until they can fend for themselves.

6. Open a “Payable on Death” account 💵

• A payable on death (POD) account lets your beneficiary claim money in a bank account without probate proceedings.
• It provides instant liquidity to beneficiaries, and you can deposit any amount into the account.
• You can set aside funds in a POD account to cover funeral expenses and other end-of-life obligations.

7. Communicate funeral plans ⚱️

• Ensure your loved ones know what you want for a funeral service, whether traditional burial or cremation.
• Communicate any wishes regarding donations to charities or the final resting place.
• Consider pre-planning your funeral with a funeral home to alleviate financial and emotional burdens on your family.
• You can put all these in a Letter of Intent, which is not a legally binding personal letter but can help your family honor your wishes.

Provide the ultimate peace of mind to your family by ensuring your financial preparedness before you pass away. 

Secure Your Legacy with Thoughtful Planning

With Doing Well, you can chart a thoughtful path for your legacy, ensuring that your loved ones are cared for and your values live on.

With Doing Well, you can expect:

• Tailored legacy planning that aligns with your life's values and goals
• Professional advice on wills, trusts, and estate planning
• Strategies for tax-efficient wealth transfer to the next generation
• Assistance in setting up educational funds for your descendants
• And much more!

Securing your legacy is more than assets; it's about affirming your life's values and intentions. Allow Doing Well to guide you through creating a legacy plan that transfers wealth and values to future generations.