Survivor planning is a tough topic for most to think about.
It, of course, means that we have to give thought to the fact that our loved ones and we will die at some point. Remember the old saying about death and taxes? They are the two things in life that are certainly unavoidable. Well, we know not everyone pays taxes, BUT we all certainly do “expire.”
Many people wait until they have children to start survivor planning. Don’t think you are too young to start planning. In addition to the income aspects, you also want to ensure other financial-related information doesn’t die with the deceased. For instance, how are bills paid? By checks, credit cards or automatic bill pay? What about online usernames and passwords?
Here’s a checklist of items to consider:
• Identify how much income is required to maintain a lifestyle for your survivors and for how long.
• Identify the permanent income sources remaining upon your death and the amounts (insurance annuities, Social Security survivor or retirement benefits, military or civilian survivor benefit programs, etc.).
• Provide your would-be survivor with a list of all savings, checking and investment accounts. List and give contact information of the firms, advisors, account numbers, types of accounts, usernames/passwords, etc.
• Discuss life insurance and whether or not you have enough and how to factor in the life insurance proceeds to the survivors’ (beneficiaries) income. If after discussion you find you do not believe you have adequate life insurance coverage, speak with a licensed life insurance professional and learn of the various types of life insurance available on the market today and which best suits your needs and the needs of your family.
• Speak to the possible need after the death of a spouse of needing to downsize and difficult yet so very important life decisions such as this.
• Discuss who is the one person the survivor can turn to to go over their financial needs and obligations and who can help manage their assets going forward.
Survivor planning and discussion is rarely easy but is certainly necessary and not a discussion to be put off. We all hope to live a long, full, perfectly healthy life, passing peacefully in our sleep. Unfortunately, most of us know all too well that this is not the norm. Make time to speak of this now, before there’s a time of crisis.
Have a plan. Be prepared.
Frederic “Ric” Schilling is a Florida native, born in Jacksonville, Fl. Ric is President of Senior Guardians of America, a local North Florida firm specializing in tax reduction, long term illness planning, asset protection, probate avoidance and life income planning. Ric is a National Speaker and Advocate on Senior Issues and has been featured by the Florida Times Union and WJXT, TV-4 in Jacksonville as an authority on Estate Planning and Retirement Issues. Senior Guardians has an A+ rating with the Better Business Bureau and is a member in excellent
