When my mom was sick, she asked what she could do to make things easier for us (me, my sister, and my dad). I asked for two big things, and one of them was to streamline her finances. I asked her to set everything to autopay and to go over the monthly expenses with me. My mom handled all of the finances, so this would be new territory for my dad, and I knew I would be the one to help with this.
If you are the person in your household who handles the finances, I would like to encourage you to show your partner, spouse, child, or a close loved one how to do these things. At the very least, make a list of usernames and passwords, so that if something happens to you, then at least someone has access to your accounts. I saw a post on Instagram the other day that said to tell someone the passcode to your phone. This is so important. Everyone thinks, “That would never happen to me,” but it does every day. Keeping someone informed of how your household finances are handled or where your password list can be found is the least you can do.
My first piece of advice is to keep your beneficiaries up to date. This can easily be done on most accounts; for things like life insurance or investment accounts, you can update these online. You can also name multiple people as beneficiaries and state how much of a percentage each person is to receive.
Another piece of advice is to draft a will. My parents drafted a will several months before my mom passed, just incidentally, but we did end up using it a couple times after she passed. If you have children under the age of 18, you definitely need a will, stating what you wish to happen to them, should you and their other parent or guardian die.
If you want to take it a step further, I suggest listing an additional person on your accounts and property. If you keep a large amount of money in your bank accounts, it would be wise to have two people listed on the account, so that the money can be accessed in case of an emergency. To further simplify things, you can also add their name to things you own, such as on vehicle titles or deeds to property. This allows another person access to your things if you are unable to, and in the case you die, your assets do not have to go through probate, which will take time and can be very expensive.
My mom made a list of all her usernames and passwords, she listed the dates each bill came out of the checking account, and she listed the websites for each bill. She wrote down how she would like her life insurance money to be used. She saved all of this information for us to access, and it made everything much easier. She even made sure to include the information for her cancer insurance including whom to contact at Aflac after she passed. Mom was on top of everything, and for that I am incredibly thankful, but also in awe of.
If you are interested in organizing your information in case of an emergency, here is a list, to get you started, of things to include:
Home mortgage
Deeds to house/land
Home and car insurance
Health insurance
Life insurance
Other insurance policies
Retirement accounts
Other investment accounts
Car loans/car titles
Phone plan
Internet/tv plan
Pet information
Tax information
School information if you have children
Wills and Trusts
Phone/tablet/laptop passcodes
Checkbook
Social security card
Passport
Birth and death certificate
Credit cards
Other loans
Include the website for each thing, username and password, how much each monthly bill is and the remaining balance (for loans), the date each bill comes out, where important documents can be found (in a safe, scanned electronically, safety deposit box). As I went through mom’s paperwork (she saved everything), the only things I saved were her and dad’s past 7 years’ tax information and the dogs’ shot records. Everything else went to be burned, and I’m sure she was freaking out in heaven. Sorry, mom.
Some of this information might seem a little elementary, but oftentimes these responsibilities fall on one member of the household, and the other is left in the dark. Discussing this information ahead of time can be incredibly helpful for the future.
BeST,
Brittany
What items would you add to the list above?
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