PLANNING FOR DEATH

By Chandler Sullivan
November 1, 2024 | 7 Min. Read

Nobody likes thinking about death, but planning ahead can make a big difference for the loved ones you leave behind. It’s not just about emotional support; it’s also about taking care of financial details that will ease the burden on your family. We hope this article can help you feel more prepared for the inevitable and make this transition easier for you and your loved ones.

How Do You Start Preparing for Death?

Preparing for death means getting your affairs in order before anything happens. Here are a few steps to help you get started:

Talk to Your Family – Let your loved ones know what you want regarding things like medical care, funeral arrangements, and how you’d like your money and belongings handled.
Create a Will – A will is a legal document that tells everyone who gets what after you die. Without a will, your state’s laws will decide for you, which can be complicated for your family.
Make an Estate Plan – An estate plan is more than a will. It includes everything from your bank accounts to your retirement funds and property. More on this later!
Set Up Beneficiaries – Make sure you’ve named who will get your life insurance money, retirement accounts, and other benefits when you pass away.

Many of these things are important when it comes to entire estate planning.

What Is Estate Planning?

Estate planning is the process of making sure your money, property, and other assets are taken care of after you die. The goal is to make things easier for your family by having everything organized and legally binding.

What is an estate plan?

An estate plan is a detailed map of what happens to your things when you pass away. It includes:

Healthcare Directives – These documents explain your medical care wishes if you’re unable to make decisions.
A Will – This outlines who gets your belongings.
Trusts – These are special accounts that hold money or property for someone else, which can help avoid going to court.
Power of Attorney – This gives someone the legal right to make decisions on your behalf if you can’t.

how do I organize my estate plan?

Here are some steps to organize your estate plan:

Make a List of Assets – Write down everything you own, like your house, car, bank accounts, and investments.
Name Your Beneficiaries – Decide who will get your money and property.
Create a Will or Trust – Depending on your needs, a will or trust will help manage how your assets are distributed.
Set Up Power of Attorney and Healthcare Directives – Make sure you have someone you trust to handle financial and medical decisions if you’re unable to.
Review Your Plan Regularly – Life changes happen, like having kids, getting married, or buying property. Make sure to update your plan when needed.

There aren’t many other things you can do to prepare yourself for someone passing. Take care of yourself. Being prepared with these things can help ease the confusion when the time comes.

What Are the Negatives of a Trust vs. a Will?

While both a trust and a will can help manage your assets, they have some differences:

Trusts – Trusts can help avoid probate court (a court process that decides who gets your things) and may keep your information private. However, they can be expensive and complicated to set up.
Wills – Wills are simpler and less costly to create, but they don’t avoid probate, and the details of your will may become public after you pass.

Both options have their pros and cons, so it’s best to talk to a financial advisor or lawyer to decide what works best for you.

what documents should you have prepared?

When you’re getting everything ready for the future, keeping your important documents and information all in one place is important. You’ll want to include personal, financial, and health details. This list is a good start, but you might have other things to add, like the name and address of your pet’s vet (for example).

Personal Information

Contact details for close friends, family members, doctors, lawyers, and financial advisors
Full legal name
Social Security number
Home address
Date and place of birth
Names and addresses of your spouse and children
Where to find birth certificates, death certificates, marriage certificates, divorce papers, citizenship papers, and adoption papers
Employers and work dates
Education and military records
Contact details for religious people, like your pastor or priest
Any groups or clubs you belong to and awards you’ve earned

Financial information

Where your money comes from (like a pension, IRA, 401(k), interest, etc.)
Social Security information
Insurance info (life, long-term care, home, car) with policy numbers and the agents’ names and phone numbers
Bank names and account numbers (checking, savings, credit union)
Investment info (stocks, bonds, property) and stockbrokers’ contact details
A copy of your most recent tax return
Where to find the most up-to-date will with your original signature
Information on what you owe (like property taxes), to whom, and when payments are due
Mortgage and debt info—how much you owe and when payments are made
Where to find the original deed for your home
Car title and registration
Credit and debit card numbers
Location of your safe deposit box and key

Health information

List of your current prescriptions (make sure to update this often)
Living will (this tells doctors what you want if you can’t speak for yourself)
A durable power of attorney for health care (someone you trust to make medical decisions for you if you can’t)
Copies of any medical orders or forms (like a do-not-resuscitate order)
Health insurance information with policy numbers and phone numbers

By keeping these details in one place, it will be easier for your loved ones to handle things after you’re gone.

What is the first thing you do after someone passes?

immediate steps

Alert the Right People:
- If your loved one passes away in a hospital or care facility, the staff will declare the death, which you’ll need for the death certificate.
- If they pass away at home, call 911, and they will be taken to a hospital where medical staff will confirm the death.
- If they were in hospice care, the hospice nurse can declare the death at home.
Tell Others:
- Once you’re ready, share the news with friends, family, your loved one’s attorney, and their workplace. If it feels overwhelming, ask someone else to help.
- Check their phone or email to make sure no one is missed.
Care for the Home and Pets:
- Keep an eye on their home to prevent theft and pick up the mail to avoid identity theft.
- Take care of any dependents or pets, and keep track of any costs for the estate.

Within the first week

Plan the Funeral:
- Funerals usually take place within a week, but there’s no rush. Choose a date that works best for your family.
- Check to see if your loved one left instructions in a will or other document about their funeral or burial wishes.
Order Death Certificates:
- You’ll need 5-10 copies of the death certificate for things like probate and transferring assets.
- The funeral home can help you order them.
Notify Financial Institutions:
- Contact their bank or credit union with a death certificate. If there is a joint owner on accounts, the funds will pass to them. If not, the executor will handle closing the accounts.
- Notify the major credit bureaus (Equifax®, Experian®, and TransUnion®) to prevent identity theft.
Contact Government Agencies:
- Let the Social Security Administration and Department of Veterans Affairs know if your loved one was receiving benefits. Survivors benefits may be available but must be applied for within two years.

within the first month

Pay Bills:
- Don’t ignore bills—call creditors and let them know you are handling your loved one’s affairs. Keep a log of all bills to stay organized.
- If managing your own bills, consider setting up automatic payments to make things easier.
Notify Others:
- Be sure to inform their financial planner, tax advisor, investment broker, creditors, utility companies, and the Department of Motor Vehicles.
Find Important Documents:
- Now is the time to locate your loved one’s important documents, such as their will, deeds, insurance policies, bank accounts, Social Security info, tax returns, and any safe deposit box keys.

what other decisions can you prepare for?

Getting your affairs in order also means deciding what you want to happen to your body after you die, like organ donation and funeral plans. Sharing your decisions helps your family during a tough time and makes sure your wishes are followed.

Organ Donation and Brain Donation

When someone dies, their healthy organs and tissues can sometimes be donated to help others. You can sign up to be an organ donor when you renew your driver’s license or state ID, or you can register online. Some people also choose to donate their brain to help with scientific research. In some cases, it’s possible to donate both organs for transplant and the brain for research.

Funeral Arrangements

You can plan what kind of funeral or memorial service you want and where it will take place. You can also decide if you want to be buried or cremated. If cremated, you can choose whether your ashes are kept by loved ones or scattered in a special place. If you have any religious or cultural traditions you want to be part of your service, be sure to include those.

You can make these plans with a funeral home or crematory ahead of time. In some cases, if you don’t want to be embalmed or cremated, your family can handle things like transporting and preparing your body. It’s important to write down your preferences and give copies to your family and lawyer so they know what to do.

We’re Here in the Tough Times

Planning for death isn’t something people enjoy thinking about, but having a plan in place can help make things easier for your family. Take the time to organize your estate plan, set up beneficiaries, and talk to your loved ones about your wishes.

If you need help getting started, Marine Credit Union can assist you with financial planning to ensure everything is ready when the time comes.

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