7 Financial Must-dos to Consider for Your Family’s Wellbeing Before it’s too late
Whether its keeping a record of your investments or providing for your family’s secure future, here are some financial decisions you should make before it becomes too late.
Though we commonly believed that one should always be prepared for the worst, when it comes to the topic of death, we often overlook the simplest financial wisdom. This leads to creating havoc in the lives of your loved ones. Here are some practices you can adopt today to help your family during an unfortunate event.
- Record All Your Investments and Bank Accounts
You may have quite diverse portfolio with a various kinds of investments, but you may forget to keep a centralised record of all of these for the benefit of your family in case of the worst. The same holds true for all the bank accounts you may have, wherein it is essential that some members of your family are beneficiaries or joint account holders. That way it is relatively easier for your family to get their affairs in order after your passing.
- Maintain an up-to-date Will
You must be sure to create and maintain a legal will that lists all your assets along with the family members you want them to be allotted to. Apart from this, it is also important to let your family know where your legal will may be found (e.g., in your bank account) and the lawyer who helped you create it.
- Keep a Record of Your Employment Details
Similar to your investments, it is important to ensure that your family has access to all record of your employment details. This is so they may be able to contact your colleague during an emergency. Additionally, it gives them the information of any benefits you may receive from your job that directly affects them such as family health insurance plans, outstanding vacation pay, bonuses etc.
- Life Insurance Policy Details
For those who have taken life insurance policies to ensure the financial health of their families after their passing, it is advisable to share the documentation and necessary information of how to cash in on that policy with their loved ones. Recording and sharing the name and contact of the agent or financial advisor who issued the policy is also prudent.
- A Record of All Liabilities
As important as it is to maintain documentation about your assets, it is equally important to keep a list of your liabilities handy. Unpaid debt is often the biggest source of stress for your family after your passing. It is thus important to make them aware of loans and outstanding credit, amongst other debt, so they know how to deal with them when the time is right.
- Business Partners
If you own or operate a business, it is important that immediate family members be kept in the loop about key business contacts and partners. This could be for both general emergency purposes as well as being aware about all outstanding creditors and debtors.
- Providing for the Future
Apart from maintaining records and documentation for information purposes, there is the added worry of ensuring your family is provided for after your demise. There are a number of options for this very purpose, ranging from life insurance to mutual funds and FDs, maintaining an emergency fund and more. Ensure that your family members are the beneficiaries of your investments and plans—and have the information they need to make the most of it.
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