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June 5, 2023
Planning for death and disability is an essential aspect of personal and financial preparedness. Here are some free, at-home tips to help you get started:
Review and Update Beneficiary Designations: Regularly review and update the beneficiary designations on your financial accounts, retirement plans, life insurance policies, and other assets. THIS IS SO IMPORTANT!! Did you know you can add beneficiaries to your checking accounts? and your savings accounts? Did you know that if you die without a beneficiary or joint owner on an account, your loved ones will likely need to file documents with the court and wait several months to be able to access any of your money? Adding beneficiaries to your accounts can spare your loved ones tons of stress and hardship if/when something happens to you. And adding beneficiaries FREE!! Ensure your beneficiaries accurately reflect your current intentions, considering changes in relationships, births, deaths, or other significant life events.
Organize Important Documents: Gather and organize important documents such as your will, power of attorney, advance directive, insurance policies, financial statements, and property deeds. Have questions about any of the documents just named? Let Oregon Will Lady know! No question is a stupid question when it comes to understanding this stuff. Store your documents in a secure, centralized location and inform trusted individuals, such as family members or your attorney, where they can be found. Remember: gather important information, organize it all, keep it in a safe place, and tell your trusted loved ones where it can be found (emphasized in point #3, below)!! Consider also adding important passwords to your stockpile of information, and make sure it stays up-to-date.
Communicate Your Plan: Inform key individuals, such as family members, your attorney, or your healthcare agent, about your estate plan, including, as mentioned above, the location of important documents and the roles and responsibilities assigned to individuals. Open communication is something that cannot be stressed enough. Often, people think having an attorney put together an (expensive) estate plan will save their family stress, hardship, confusion, etc. And yes, consulting with an attorney can and should help alleviate these things. However, there is so much to be said about personal transparency regarding your plans, intentions, assets, etc., while you are alive and well. It can be difficult to talk about death and disability, but open communication can help ensure that everyone is aware of your wishes and can act accordingly in times of need.
Review and Organize Finances: Take stock of your financial situation, including bank accounts, investments, debts, and assets. Develop a clear picture of your financial standing and keep this information up-to-date. This will facilitate the management of your finances in the event of incapacity or death. If this seems overwhelming, don't worry! I developed an asset spreadsheet template to help you get started and stay organized!
Regularly Review and Update Your Plan: Life circumstances change, so it's crucial to review and update your estate plan/beneficiaries/asset information periodically. Significant life events, such as marriage, divorce, birth, death, or changes in financial situations, may require adjustments to your plan. Regularly revisit and revise your plan as needed to ensure it reflects your current wishes. You can and should be reviewing any existing plan at least annually (and when your circumstances change significantly), and can do so while on your couch in your pajamas.
Remember, while these tips can provide a general starting point, it's advisable to consult with professionals such as estate planning attorneys, financial advisors, or tax professionals to obtain personalized advice based on your specific circumstances and applicable laws.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.