Having a financial plan for when you’re no longer here is one of the most valuable things you can do for your loved ones. Grief can be overwhelming. Having a plan in place can save stress and confusion and minimise the likelihood of disputes. Your parting gift of financial clarity in a difficult time will be gratefully received by those left behind.
There are some simple steps you can take to ensure your finances are in order before you die.
Check your bank accounts
Can your accounts be accessed by your partner when you die? If you’re unsure, check with your bank. If accounts are in your name only, how would your family access the funds? Consider setting up an emergency fund to cover things such as funeral expenses that more than one person can access.
Review your life insurance and super
You may have life cover through your super. If so, check that your beneficiaries are up to date. If you have received a terminal diagnosis, you may be able to get your super and life insurance paid out early to assist you in getting your affairs in order.
Talk to your partner
If something unexpected were to happen to you, it will save your partner enormous stress if they have a basic idea of what assets and liabilities you have, and who helps you manage them. If your partner is not involved with your finances encourage them to become engaged. Introduce them to your accountant, financial planner, lawyer or any other professional you use to help manage your affairs.
Review your estate plan
Having a valid will ensures your assets go to the people you want to have them. You may also want to consider appointing an enduring power of attorney. This should be someone you trust to manage your financial affairs, should you lose mental capacity.
If you have lots of assets or a complicated family structure you may want to consider using a trust to hold your assets. A family trust can be created while you are still living. A testamentary trust is created by instructions in your will, in the event of your death.
Keep your documents safe
Try to avoid leaving behind a financial mess when you pass away. Having a plan with all the paperwork in order will give your loved ones one less thing to worry about when you’re gone.
Keep all your documents in one place. Set up a file listing all your assets, liabilities, insurances and any other financial information. The file should include all relevant details such as financial institutions, name of the accounts and account numbers. Include details of any insurance policies, the policy provider, policy number and when the policy commenced and is due to expire.
You should also include the latest financial statements in this file. Don’t forget to include any email correspondence.
Knowing you are prepared will give you peace of mind. You will have done your best to protect your loved ones emotionally and financially. These simple steps will ease the mental weight of worrying about, “what if something happens to me?”
If you need help, get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
