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Aligning Wealth Management with ESG Values
EP Wealth’s Carrie Sax, CFA, CFP® shares insights on ESG investing, explaining how it adds a layer of due diligence while helping clients align...
Author: Laura Knolle
Marriage takes teamwork and each of us comes to the table with different skill sets and plays different roles to make it work. If something were to happen to one in the relationship, how would the other do that job? What steps can we take in preparing for the death of a loved one?
I frequently think about this in my personal life. What should I do now to be prepared if my husband suddenly passed away? I’ve been asking my husband for some time to create a household manual. If something were to happen to you, I say, I’d never know how to adjust the sprinklers, alarm, or heater again.
By thinking this way, I gain a deeper appreciation for those unnoticed things that he does for me—and I think it’s what makes me a better planner. The death of a spouse can be very emotional, so creating a widow checklist and assembling the information will prepare you to manage the difficult times by decreasing the stress of decision-making under duress.
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The Importance of Preparing for the Death of a Spouse
Since I help many widows and widowers in my practice, I see the consequences of not preparing for this inevitability. And it can often be very dramatic, because dealing with the grief is overwhelming.
The world doesn’t stop working because of tragedy, and many widows and widowers struggle to learn about their finances, which is only amplified by the emotion. What’s hard is that it doesn’t have to be that way. It’s why I always recommend that couples come to meetings with me together, so that they both are comfortable not just with the plan, but with what they need to do for the times in which life inevitably happens to us.
But I see that more people than just my clients need help in preparations, so below I’ve provided a financial preparation checklist for couples. I encourage you to work on it together.
A Checklist for Widows
1. Know who your trusted professionals are, including your:
- Financial Planner
- CPA
- Estate Planning Attorney
- Insurance Agents
- HR contact, if you are employed
2. Attend meetings together with your Financial Planner, CPA, Estate Planning Attorney, and Insurance Agents. Both spouses should be involved and comfortable with these professionals.
3. Create a net worth statement listing out all of your assets and liabilities so you have a clear snapshot, including:
Assets- Property
- Bank accounts
- Retirement accounts, etc.
- Investment accounts, etc.Liabilities
- Mortgage
- Credit cards
- Student loans, etc.
Liabilitie
4. Have a current estate plan in place. This includes:
- For non-retirement accounts that are not titled jointly (perhaps they are separate property) and not titled to a trust, consider adding Transfer on Death (TOD) or Payable on Death (POD) so the surviving spouse has immediate access.
- Communicate what you want to happen when you pass. Would you like a funeral or memorial service? How would you like to arrange for disposal of your remains? Would you like an obituary to be published?
- Confirm beneficiary designations on life insurance, retirement plans, and annuities.
- Know each other’s passwords. My husband decided to set up LastPass. I was slow to adopt it but now can’t imagine not using it.
- Understand what insurance you have in place. This includes:
- Health insurance
- Life insurance
- Disability insurance
- Long-term care insurance
- Property and casualty insurance
5. Know all sources of income:
- Employment
- Pension
- VA
- Social security and others (such as rental property), etc.
6. Understand your budget – what bills are due and when.
7. Know where all important documents are stored, whether it be in the cloud, on a flash drive, or on paper. Keep them organized and secure.
8. It’s not as common anymore to have a safe deposit box but if you do, know where the key is, box number, institution, and whose name it’s registered in.
9. If you have a safe in your home, learn the combination.
10. Write down the contact information for anyone who should be notified of your death, such as family and friends, but also your doctor, dentist, hairdresser, etc.
Contact EP Wealth Advisors for Assistance
Some aspects of this financial-preparation checklist can be complicated or cumbersome, so if you have questions, please do not hesitate to reach out to me and my colleagues at EP Wealth Advisors directly. If you have lost your spouse and there is something you were grateful to have that I missed on this checklist, I would also love to hear from you. You may also be interested in exploring services such as Estate Planning, Life Transition Planning, and Financial Planning. From preparing you to meet life’s challenges, to helping secure your financial future, we’re here to help!
Disclosure: Our review and recommendations are limited to and in association with financial planning. The information referenced here should not be considered a comprehensive analysis. Rather, it is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions with the appropriate professionals. EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any of the information represented. Working with a qualified advisor and/or financial planner is no guarantee of investment success and does not ensure that a client or prospective client will experience a higher level of performance or results.
