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Though it's not an easy subject to face, thinking about death is essential. While it's a gloomy topic, it's vital to talk it through with your spouse. In case the worst occurs, ensuring everything is organized beforehand can significantly reduce stress during a difficult time.
We've shared tips on preparing for your death, both financially and in other ways. But Fidelity highlights the importance of having an open discussion with your spouse on these matters. Unsure where to begin? Here are some key points they suggest you address:
Essential Information: A List of Financial Accounts:
Each of you probably has several financial accounts—checking, savings, mortgage, credit card, investments, 401(k), IRA, etc. Make sure you're both aware of the accounts you each hold and where they are located. Organizing this information in a spreadsheet with account numbers is a smart way to keep everything in one place.
Beneficiaries for Accounts:
It’s a simple process to designate or update beneficiaries on financial accounts. Most financial institutions offer an online option to make these updates. Naming beneficiaries on all accounts can prevent legal issues in the unfortunate event of a death.
What to do if your spouse dies or becomes incapacitated:
Each partner in a relationship should ensure they have these three essential documents and discuss their preferences with each other:
A will or living trust combined with a “pour-over” will...a power of attorney...a health care proxy.
Emergency preparedness: Be aware of where critical legal documents are stored:
Tax returns for the last two years, marriage and birth certificates, insurance policies, wills, and healthcare proxies are just a few of the vital documents that both partners should know the location of.
This ensures you're ready if the worst happens. Fidelity provides more detailed insights into each of these recommendations, so don't forget to check out their full post at the link below.
Photo by sabrina176.
