Whether you’re getting closer to old age or you just want to be prepared for whatever comes your way, it’s never too early to start preparing yourself and your loved ones to handle the finances of your end-of-life. However, if you can take care of these things before you start going downhill or have some kind of accident, you’ll allow your loved ones to grieve your loss without having to worry about what you would have wanted for your estate.
To help you in figuring all of this out, here are three financial tips for preparing for the end of your life.
Consider A Will And A Trust
When people think about dying, the one document they automatically draw upon is a will. However, if you reach a point where you haven’t died but still need someone else to take on the responsibility of you and your property, having a living trust is going to make this transition much easier for everyone involved.
According to Rebecca Lake, a contributor to SmartAsset.com, by adding your belongings and possessions to a living trust and appointing a trustee to handle things when you’re no longer able, you’ll ensure that all of your wishes for your financial future and the futures of those you love will be handled just the way you want and intended. Without this, you and your loved ones may encounter a situation where they are unsure of how you would have wanted to proceed, which can cause them a lot of stress.
Arrange For Funeral Costs
One of the last things you want your loved ones to have to worry about once you’ve passed is handling the financial costs of your funeral. Because of this, Barbara Marquand, a contributor to Nerdwallet.com, recommends that you take some steps to save for your funeral well in advance.
Some things you might consider taking care of could include putting money into a savings account and then allowing a trusted friend or family member to have access to that money upon your death. Additionally, could also purchase a whole life insurance policy to help cover these costs or even just prepay for your funeral arrangements.
As you near the end of your life, you should begin thinking about how you can make your death easier on those that you’ll leave behind. To do this, Laura Shin, a contributor to Forbes.com, advises that you start downsizing.
You can downsize in almost all areas of your life, from the belongings you keep in your home to the pieces of property you own and even where your responsibilities lay.
If you want to help your loved ones handle all that comes with the logistics of death, consider using the tips mentioned above to help you get your financial house in order.