In this topic we’ll share ideas around the concept of preparing for death with a goal of creating as little burden as possible for the loved ones we leave behind.
Note: I am not a lawyer, and this topic is not intended as legal advice. It is simply shared knowledge picked up from difficult experiences in the hopes that it might make someone else’s journey down this path a little easier.
1. Document what you own
It’s a pain to do and to keep up to date, but it’s well worth the time. Somewhere, on paper, on your computer, or in the cloud, make a clear list of what you own, where your assets are held. Secure the information - you want it to be available to your loved ones but not available to any potential thief!
2. Joint ownership and beneficiaries
Whenever possible, consider joint ownership of a bank account, real estate, and other properties. Anything that is jointly owned is not considered part of your estate, it does not have to be dealt with through probate, and the surviving co-owner does not “inherit” it, since they already own it.
Example: In your normal, day-to-day life, it can be a hassle for two owners to need to be present in order to sell a car, so often spouses will decide to put only one of their names on the title. However, if that owner passes away, the ownership of the car must be determined as the estate is settled, according to the will or the whims of the court. At best, the surviving spouse will end up with the car, but the process will take time. However, if the car had been listed in both spouses’ names, the surviving owner would not need to wait for the estate to be settled before being recognized as the owner of the car.
Sometimes giving a loved one full joint ownership of your bank account might be unwise. In this case, check with your bank to see if they can add a beneficiary or “POD” (payable upon death). The individual(s) named on a financial account as beneficiary or POD become(s) the owner(s) of the account upon your death, usually by presenting a death certificate to the financial institution. As with joint ownership, money transferred this way is typically outside of probate and gives your loved one access to the assets much more quickly and with less governmental intrusion.
By handling the transfer of assets with joint ownership and named beneficiaries, you shrink the size of your estate, making the process of settling the estate much simpler. In fact, in some states, if the size of the estate is below a specific threshold, it’s possible to avoid many of the legal steps involved in settling an estate through the probate courts.
3. Make a will
I used to think a will was for people who had gobs of money or who were control freaks who wanted to continue to control their assets even after they were gone.
Instead, a will helps those we leave behind understand what you owned and how to distribute it in a way that provides for those who rely on you. If you don’t have a will, your local government will determine how your assets are to be distributed, and in some cases these laws that are intended to be “fair” in the majority of situations may not match what you would have expected or hoped for.
When writing a will consider anyone who depends on your income or even your time and in-person assistance, including elderly relatives, a spouse or partner, children, and grandchildren.
Definition: Intestate - without a will. If you die intestate, the government will determine how your estate is to be divided.
When you make a will, it is a good idea to name an executor.
You may want to name more than one executor so that if that person passes away before you do, you do not have to have your will updated. Naming multiple people also allows for one person to step down if they do not feel capable of taking on the task.
If you do not name an executor, the court may appoint someone.
Ask yourself whom you would trust to deal with potential conflict regarding your estate at a time when emotions will be high.
A will can be expensive. If you don’t feel like your budget can currently support the legal fees, look around for possible alternative options. For example, our Credit Union offers estate planning, including the drawing up of a will, at a discounted price. Some states will honor wills written from online resources without a lawyer’s assistance.
4. Leave behind access your devices
While it’s always wise to secure your phone, computer, and other electronics, if you don’t let someone know how to get into them, they become completely useless once you have passed away. Consider all the accounts you have online that require an authenticator code from your phone or a code texted to your phone number. While your executor will be able to handle the cancellation of online services by sending death certificates and proof of representation, sometimes it’s much simpler and quicker if your loved ones can simply log in and close things down.
Be careful to store or share the information in a secure manner. You don’t want the wrong person gaining access to your online accounts.
5. Establish safe online practices now
Safeguard against criminal activity: The fact that you have passed away will be public record, and there are evildoers who will use the information to their advantage.
Make sure each of your online accounts uses unique login credentials. Do not use the same username and password on different sites. While one or two username/password combos make it easy for you to remember how to log in, it also makes it easy for a hacker to gain access to your accounts. If you have trouble remembering multiple passwords, consider a secure password management app.
If you currently use password vault software, considering writing a review of it in our Reviews category.
Browsers will also store your login credentials for you, but keep in mind that they do not encrypt the information. If someone gains access to your browser, they will be able to see all your login information. If you store your login credentials in your browser, use an extremely secure password for your browser login.
Prepare with documentation: Consider keeping a record of your online accounts, especially any with recurring billing, to make it easier for your loved ones to know what they’ll need to close out. For example, my emergency information files includes notes to let Mr. Southpaw know how reach @rolandh so that this site can be transferred seamlessly!
Set up a seamless handover: Both Apple and Google allow you to designate a contact who is trusted to access your account after you have passed away.
- Apple’s Legacy Contact
- Google’s Inactive Account Manager
6. Don’t forget your pets
While it may seem extravagant to set aside money in your will for the ongoing care of a pet, consider whether you’d want that pet going to the local animal shelter when you pass away. If you choose not to provide for the care of your pets in your will, you might want to make an agreement with a family member or close friend to ensure that your pet continues to be cared for if something should happen to you.
What else?
This is not an exhaustive list, let’s add to it together. If you can think of ways to live today so that your death will be less of a burden on those you love, please share your ideas in reply.
… without whom some of us would have already departed.