How to Prepare for Your Death: A Guide to End-of-Life Planning
When people think of end-of-life planning, they often think about wills and funerals, but there is much more involved than that.
Coping with grief is difficult and, for some, a lengthy process that is mentally and physically exhausting. Tying up all loose ends associated with your finances, your funeral, and your last will and testament before the inevitable happens can show your family and friends how much you love them.
In this guide, we’ll cover everything you need to consider when starting this challenging process.
Assigning a Beneficiary
Have you ever thought about what would happen to your bank accounts, life insurance policy, IRAs, and other non-probate assets after you pass away? Unless you assign a beneficiary to receive these assets, a civil court could award any money associated with such assets to the state and other entities.
You can name one or more beneficiaries in your will and choose how much each beneficiary should receive. You may also designate a nonprofit organization as a beneficiary of a portion of your money. Another option is to designate a primary and secondary beneficiary in case something happens to the primary beneficiary before you pass.
Additionally, estate planning attorneys recommend reviewing your list of beneficiaries every year in case you need to or wish to change a beneficiary.
Creating a Living Will & Advance Directives
A living will is a type of advance directive that contains instructions outlining your wishes concerning your health care should you become incapacitated.
Living wills can include clear instructions regarding end-of-life housing, such as not wanting to be placed in an assisted living facility, nursing home, or hospice, as well as certain medical treatments and procedures you never want to receive.
You can learn more about how to create a living will here.
Creating a Last Will & Testament or Trust
Last Will & Testament
A last will and testament names the executor of your estate and describes how you want your assets to be divided among individuals and/or other entities. The executor is essentially the “boss” of your estate and ensures your last wishes are carried out as you describe them in your will. Wills must be signed and witnessed according to state laws before they are enforceable by a probate court.
Trust
A trust is a legally binding arrangement that allows the transfer of money, valuables, and/or other assets from the assets’ owner (trustor or grantor) to a trustee. Trusts contain instructions about how a trustee must manage and distribute the assets to one or multiple beneficiaries. The trustee, not the beneficiaries of the trust, has the final word on the distribution of the assets.
Since wills and trusts both involve the creator designating people to manage them, it is important to review them regularly and update them accordingly.
Organize Your End-of-Life Planning Documents
Keeping your end-of-life planning documents in separate, marked folders can help prevent your assets from going to the wrong people or your estate being litigated in probate court.
Tell the individuals named as executors, beneficiaries, or trustees exactly where you have stored these documents. Also, ensure you make digital backups of each document and place them in a secure cloud storage space to prevent them from damage or loss.
Funeral Planning
Pre-paying your funeral expenses is a hedge against rising costs and a wonderful gift you can leave your loved ones, who may be unable to contribute to funeral expenses.
In addition to handling costs, funeral pre-planning means you have control over the details, including:
- Your preferred funeral home.
- The type of funeral you want (burial, cremation, etc.).
- Your final resting place (do you want to be buried in a cemetery or on family-owned land? If the first, you’ll need to purchase a plot).
- Where you want your ashes scattered, if you’re opting for a cremation.
- What you want included in your memorial or funeral service.
When it comes to paying for these types of expenses, you can pay upfront, pay in installments, or set aside funds for your family.
For a more detailed overview, please download our FREE funeral planning guide.
Write Your Obituary
You can write your own obituary and place it with your other documents or leave specific directions for what you want your obituary to say. Most newspapers have specialized obituary writers if you don’t want to write one.
Continually Update Documents
Remember— it is essential to keep documents updated so your end-of-life planning instructions are followed according to your wishes.
Working with an estate planning attorney is recommended, as they know when state wills and trust laws change and can help you keep your documents updated when needed.
Purchase Life Insurance
Term life insurance can help pay for end-of-life expenses, funeral planning, and costs associated with long-term care. Term life insurance policies generally cover an individual for 10, 20, or 30 years. If the policyholder passes away during any of these timeframes, the beneficiary named in the policy receives a specific amount of money typically used to pay for funeral expenses.
Start Your End-of-Life Planning Today
For over 100 years, the Wujek-Calcaterra & Sons has provided the metro Detroit communities with exceptional cremation and funeral services, grief support, and end-of-life planning assistance.
If you need help starting your end-of-life planning, please contact us today to schedule a free consultation—we’re available 24/7.
