Life happens. Tomorrow is always a surprise. You could get hit by a bus tomorrow or your spouse could need emergency surgery. Possible end-of-life planning is a freaky subject to think about, but I want to make sure you prepare for the “What if” so I’m here to lay it out, in Taco Terms.
Why Prepare for End-Of-Life and “What If”
In our household, Mr. Bean makes the money, but I’m the CFO. We both have our assignments when it comes to family finances and we’d both be lost if the other were suddenly gone.
I was diagnosed with a “wonderful” autoimmune disease called Rheumatoid Arthritis in my 20s. Through thick and thin, Mr. Bean has been there to support me. But because of my strange ability to erode my body from the inside out, I’ve undergone at least 4 major surgeries in the last 6 years.
Every time I go in for surgery, I make sure to update all of the important information Mr. Bean would need to know in order to keep our family running, just in case.
As horrible as it may sound, you never know when something could happen to you or the significant people in your life.
You could get hit by a train tomorrow which could leave you dead, a vegetable, or hospitalized for an extended period of time.
It is important to make sure you keep your life organized in a way that others would have a reasonably easy time picking up the pieces you leave behind. (Or if your spouse does these sorts of things, make sure you are able to get all of the necessary information.)
Here is my list of things I try to keep updated in both a printed (in a fireproof bag like this) and saved document that my husband knows and can find. I update it annually and always double-check accuracy before a known surgery:
Important Phone Numbers
I homeschool the kids and take them to doctors’ appointments, friends’ houses, activities, etc. If asked who the kids’ gymnastics teacher was, hubs would probably have no idea. I make a list of important contacts, for all of us, that could possibly be needed:
- Doctors
- Pediatricians, primary care, chiropractors, specialists, etc.
- Teachers
- General school information, pick up and drop off routines, etc.
- Best Friends
- The kids’ best friends’ parents contact info. How horrible would it be if something happened to a parent and they lose their best friend as well simply because they couldn’t get in contact with them.
- Insurance agents
- Life insurance, Homeowners/renters, car, business, and account numbers
- Landlords
- Or building maintenance, HOA, or anyone who may be of need for your home
- Even favorite plumbers or electricians if you have built a relationship with one
- And anyone else that may be an important part of your life that would make it just plain hard to get things done if you lost their information
Bank Information
- Where is all your money? Bank Names, locations, websites
- What are the account numbers? Checking, Savings, Investment funds, Retirement funds
- Log-in information and passwords?
- How do your automatic bill payments and transfers work?
- Do you have a direct deposit from your job? When? When and where do monies transfer into different savings and sunk funds happen?
- Make sure beneficiaries are up to date as well
- Where do you keep your important documents such as passports, birth certificates, and marriage licenses?
- If one person tended to be more in charge of the money, what are your investment strategies? Should they stay the same or change if one of you passes?
- Does one of you have a pension from a job that needs to be contacted to ensure it is handled correctly?
Important Household Information
Do you have a special lightbulb in your hall chandelier that you have only been able to find at one store? Do you have a gutter or siding warranty? How do you reset the alarm? There are often things in a household that one person tends to take care of. If you or your spouse were suddenly gone, does the other person have the information needed to keep the house in working order without excess toil and relearning?
Health Care Directive
Do you have a written Health Care Directive, or what used to be called a Living Will?
This document lists:
- People who are allowed to make decisions about your health care should you be incapacitated.
- The types of care you want (blood transfusions vs no, life support or no, etc.)
It can be easily created:
- Often can be acquired from your nearest hospital
- Often requires 2 witnesses or a notary signature to prove that you wrote the directive
- Can be updated or changed at any time, orally or in writing, if your decisions change
Having this written document can make it much easier for your spouse or loved ones to make care and/or end-of-life decisions for you in case of an emergency. It may sound morbid and totally not something you want to think about, but having this discussion and decisions made known before something happens to you can make all the difference in a time of crisis.
Will or Trust Estate
If you have anything of value, including kids! You should have a written will or trust estate set up.
This will ensure that ownership and/or custody go more smoothly in case of your demise. Work with an estate attorney to set this up correctly.
Life Insurance
If there is someone in your life who relies on you financially or you on them, and you are not already financially independent, you bet your buns you better have life insurance.
Term Life Insurance is often cheap and easy to get. Especially when you’re in your 20s and 30s.
- Don’t go crazy and get the biggest package you can find
- Make sure your family could comfortably survive after your death
- How much income needs to be replaced?
- Does your spouse stay at home, are you close to retirement?
- Do you have kids? Childcare and college expenses should be included
- Do you have any debts like mortgages, car loans, or credit cards?
- Final expenses for burial and funeral costs.
- How much income needs to be replaced?
- Calculate your annual salary (or childcare costs for a stay-at-home parent, unless the remaining parent would become a stay-at-home) for the number of years you want to replace income + mortgage balance + other debts + future education needs for children + funeral costs
- Subtract liquid assets like savings accounts – college funds -any other life insurance provided
Necessary Insurance Policy = Needs – Liquid Assets
Just Do It- Prepare for “What If”
I know it may feel super uncomfortable not something you want to think about, but having things like these laid out for the ones you love can help them continue with their lives as smoothly as possible at a time when they are super stressed worrying about you in the hospital or grieving the loss of you. (Or you of them).
So even if you don’t have a big surgery coming up next week, like me, take some time this weekend to start rounding up this information and talk to those you love about how things are handled in your household.
Many a widow(er) has been left in the dark just to lose everything because they did not know the ins and outs of their family money or household. Don’t let that happen to your family, the ones you love, or even yourself.
Do you have any tips for end-of-life or emergency planning? Do you know anyone or have you experienced the frustration of not having the information you need in an emergency or the relief of having everything laid out?
How to Prepare for the “What If”
- Important Contact Information
- Bank Information
- Necessary Household Information
- Health Care Directive
- Will or Trust
- Life Insurance
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