What Would Your Family Do If You Died?
By Dy Phan on Tuesday, June 19, 2007 - 3:00 pm
Category Life, Financial Planning | 1604 Views |
Growing up, money was a taboo topic. My parents never talked about how much they made or how they spent it. Managing money seemed like a Hurculean feat that only my father could handle. He was the sole decision maker even though my mom was also working and providing a salary. She trusted him implicitly because he was good at managing their resources. And she was rightly so, my dad retired in his early 40s after a couple of decades working at Fortune 500 companies.
I always wondered what would have happened if something were to happen to my dad. Would our family been able to cope with the loss? Or worse, would we be in disarray, unable to figure out our debts, not even knowing what accounts we held?
This thought horrifies me now that I’m married. In this world, one of the things I value most is my wife’s security. I wouldn’t want to do anything that would jeopardize her well being. I give her updates every few days about how our investments are doing and monthly networth reports. I’ve tried to explain how I come to a decision with what institutions to park our money. This never seems like enough.
Although my wife has equal weight in how we choose to spend our money, from investments, budgeting, entertainment and discretionary purchases, etc., she isn’t necessarily informed with the specifics. I really need to provide her with something a little more concrete in case the worse were to happen. Here are some thoughts I’ve been kicking around:
- List all our accounts and asset, including our home, credit cards, and insurance policies, with a basic description, account numbers and contact information, including passwords when required.
- Identifies individuals and organizations to be contacted when I die (for example, professional advisers and the Social Security Administration).
- Tells where our important documents are, including insurance policies, birth certificates, Social Security cards, wills, living wills, health care proxies and final wishes for simple and inexpensive funerals.
- Gives information on matters that may seem trivial but could cause needless frustration in times of grief, such as how to run the home entertainment system or if you own a home, the alarm or sprinkler system.
- And going beyond cold face, this document would allow me to write a personal farewell to my loved ones and my wish that they continue to lead full, happy lives with purpose as the best way to honor my memory
Possibly the best thing you can leave behind is peace of mind for your spouse and loved ones. Are there things I should have included?
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Don’t forget the basic will.
Sick of Debt | Jun 19, 2007 | Reply
I’m still young, don’t have a whole lot of assets and no children. I was going to wait on the will until we had our first child.
Dy | Jun 20, 2007 | Reply
The problem with that is then the court decides on your assets and charges your family for the service. The will is such a simple document, especially if your married (along the lines of “all goes to my spouse”). Otherwise the court will probably decide that your siblings and parents get a share as well. I have seen too many people pass away without a will, it’s not pretty.
Sick of Debt | Jun 20, 2007 | Reply
The way you describe tyour parents is very typical of Asain parents. Similar to mine. I had to idea of my parents financial status until after my father’s demise.
We are of modern generation. I make sure everything is doen properly. Will, Investment, bank account, insurance and Saving are properly accounted for with beneficiary named.
odysseus | Aug 9, 2007 | Reply