This year I will be turning 50 years old and classically this tends to be around the age when people report having mid-life crises. I have already communicated to my wife that my mid-life crisis consisted of me purchasing a used Jeep Wrangler a couple of years ago, despite its impracticalities. Instead, as this age milestone approaches me, I am more worried that my loved ones will be taken care of if I were to die prematurely. I want to do all I can to reduce the emotional stress for my family when I am no longer with them (which I hope is very far off in the future).
As financial advisors, we have the privilege of helping people navigate some of their most stressful events. This could be the loss of a parent, the sale of a business, or the exit from a career. However, one area which tends to be the hardest, and we have seen numerous times, is when a spouse is unexpectedly lost.
To help minimize the stress associated with such a tragedy, it is important for spouses and loved ones to have the necessary information to move forward as seamlessly as possible. One way to help survivors is by creating what I refer to as a “death file.” This is a document that helps navigate how to manage all the responsibilities a loved one may leave behind.
As this age milestone is approaching for me, I am reminded of so many of the unexpected tragedies I have seen over the years, both socially and professionally. When we meet with clients and prospective clients, we talk about life and disability insurance, long-term care insurance, and estate planning. Although these are all critical aspects of a financial plan, they tend to focus on the larger picture. There are many other things that may arise while grieving that these documents may not address.
Every couple’s situation is different, but the following list may help you develop your own “file” that may ease some of the potential burden while grieving in the face of such a tragedy.
Critical Information
Location of estate planning documents including trust documents.
Life insurance policy information.
Inventory and access to all financial accounts and checkbooks.
Guidance on life support.
Wishes regarding funeral (including burial vs. cremation, organ donation)
Type of Funeral you may want and how it is funded.
Estate Planning attorney, tax accountant, and financial advisor contact information.
Account info for all bills. Ensure a living spouse will have access to bank accounts (a common method is using a “TOD” designation).
Login and password list (i.e. set up “legacy contacts” if in Apple ecosystem)
Other wishes
When you compile this data, ensure that it is kept in a secure place. If it is stored electronically, only share your passwords with your spouse and/or trusted loved one.
In addition to gathering this information, an annual review with your spouse on where this information can be found is also recommended. This way the information will stay updated, and if the time comes, they will know how to navigate the events.
Conversations regarding this topic are certainly hard for anyone, but if you are found in this situation, we believe a “death file” will be help serve as a “roadmap” to help during a very emotional time.