The Costs of Death - Preparing For The Inevitable

If you haven't made a point of considering what will happen when you take your final curtain call, you're not alone. A 2001 survey by the Hospice Foundation of America revealed that half of those polled say they will rely on relatives and friends to carry out their wishes when they're gone, but 75 percent say they've never told those people what their wishes are. Hey, it's not fun to talk about, but if you expect your friends and family to take care of things following your death, you owe it to them to tell them what those things are. You owe it to yourself to think about it.

Maybe you know where all your important financial papers are, but you're carrying that information in your head. Guess what? Nobody will be able to tap into that knowledge after the fact. (The "fact" in this case being your untimely demise.) Consider the consequences of your inaction: Stocks, bonds, bank accounts, real estate, insurance policy benefits and a bunch more in your name could go unclaimed. Fortunately, losses like these can be avoided with just a little advance planning and organizing. We're not saying it will be an easy task, but if you do one thing at a time, you can accomplish the job.

Don't let this list overwhelm you, but do yourself--and your loves ones--a favor by thinking it through. Then, make an effort to make some progress.
Make a list. Grab a piece of paper and write down what you own. We've got helpful forms that can make it easier. We're talking stocks, bonds, bank accounts, real estate, insurance policies, employer pensions. Take a breath and continue reading. We're also talking anything you have in a safe, safe deposit box, shoebox or other hidden places. Do you own family heirlooms, valuables or irreplaceable items? Add them to the list.
Simplify. Now look at your list to see if you can consolidate or eliminate anything. Do you have more than one savings account? Is there a good reason for that? Do you own real estate you should have sold years ago? Is it time to simplify your finances for your sake and for the sake of your heirs?
Name names. We'll assume you have a will, even though you're in the minority if you've actually got one. Do the names in your will match your named beneficiaries on things like your house, retirement accounts and the like? If you own a house jointly with right of survivorship, the other owners will usually inherit the property, even if you leave the home to somebody else in your will. Here's what we have to say about wills and power of attorney.
Tell somebody. Tell your spouse and/or family members and/or trusted friends where your important papers are. You do know where your important papers are, don't you? You may also want to inform your heirs in a general way what you've got. Imagine Junior's surprise when he learns you're donating your art collection to the local gallery.
Keep it safe. If you've actually gotten this far, we hope you have things in writing that you want to keep in a safe place. Store papers or a computer disk or CD in a fireproof metal box, file cabinet or home safe. If you put it in a safe deposit box, be sure someone besides you has access to it or your documents won't be accessible once you‘re gone.