Long-Term Care (LTC) Options as You Age

How much time have you spent thinking about your future death? If you’re like most people, probably not much. Thinking about your death or that of a loved one can bring up plenty of unpleasant emotions, but having a plan to take care of the details can ease some of the stress in a time of grieving. So if you’ve lost someone close to you or just want to create a plan for the future, follow this checklist to help you deal with the financial side of an unexpected death.

Organize Documents

In the aftermath of a loved one’s passing, his or her will is not the only document you will need. In order to do things like request benefits or change the name on car titles, you will also need copies of the following:

Birth certificate

Death certificate

Marriage certificate

Social Security card

Automobile titles

Property Deeds

Insurance policies

Bank, investments, and retirement account statements

If you want to plan ahead, ask yourself: Do you have an organized filing system, or are all your important documents strewn about in different places? As you organize your family’s documents, make sure the appropriate people have access to the information they will need in the event of an unexpected death.

Notify The Appropriate Contacts

There are a few people you will need to contact who will be able to help you through the process of taking care of the deceased’s finances. As soon as you are able, reach out to their financial advisor, insurance agent, attorney, and accountant. These professionals are trained to know how to handle an unexpected death, and they will be able to direct you to the right sources of information and help you make the best decisions possible.

Take Care Of Immediate Financial Needs

When someone close to you dies, there are many time-sensitive tasks that need to be taken care of. These tasks often have a financial element involved. For example, when making funeral arrangements and covering burial expenses, be sure to review life insurance policies and look for any pre-arrangement details or last wishes the deceased may have left. Some expenses may be covered, which will save you a financial headache. Speak to the deceased’s financial advisor to see if there are any easily accessible funds set aside for bills or debt payments that cannot be deferred.

Review Benefits

Surviving family members may be entitled to certain benefits, such as Social Security benefits and perhaps pension benefits, life insurance, and annuities. Contact the human resources department of the deceased’s employer, who can explain and document the following benefits that may be available to you, including:

Life insurance

Healthcare, or extended healthcare coverage through COBRA

Compensation due, such as stick options or unused vacation pay

401(k) or pension

Depending on your relationship to the deceased, you may need to apply for Social Security survivor benefits, update insurance beneficiaries, and apply for settlement.

Manage Their Estate

Finances can get messy when someone dies. Our financial lives can be complicated, so use this list as a starting point for closing accounts, updating information, and taking care of the countless details. Look into whether the deceased had any of the following accounts and contact the institution:

Checking Account

Savings Account

Brokerage Account

IRA

401(k)

403(b)

Health Savings Account

Flexible Spending Account

College Funds

Don’t forget about debts. Debts don’t disappear when someone passes away. Investigate the following and make sure those who are now responsible for these debts are aware of the creditor’s name, outstanding balance, name on the debt, loan terms, and the amount, timing, and method of payments.

Mortgage

Home Equity Line of Credit

Automobile Loans

Personal Loans

Student Loans

Credit Cards

Make sure you don’t forget about recurring household expenses, such as utilities, and how and when to pay them: .

Property Taxes

Electricity

Sewer

Water

Natural Gas

Garbage

Telephone

Cable TV

Internet Service

Landscaping

House Cleaning

Homeowners Association Dues

Other organization membership dues

Work With A Trusted Advisor

Handling the details after the death of a loved one can be overwhelming, but you don’t have to do it alone. Financial professionals are experienced with these situations and can guide you through the steps that apply to your unique circumstances. They will not only help you take care of pressing problems and concerns, but can also help you feel more secure in a time of financial change. A financial advisor can make sure your affairs are in order, update your financial plan, and implement appropriate strategies to help you stay on track financially.

There may be plenty of factors outside of your control that impact your financial situation, such as the markets, the economy as a whole, or an unexpected illness. But those circumstances may not play as critical of a role in your financial life as you might think. The real dangers to your financial future are the lies you tell yourself when it comes to financial planning. Here are some ways you could be undermining your financial success and some ideas on how to change course.

Lie #1: I Don't Need Help. I Know What I'm Doing

Let’s say you read a plethora of financial planning books, stay up-to-date on the markets, and know all about budgeting software. That may put you ahead of a lot of other people, but there are certain aspects of financial planning that often go ignored even by the most knowledgeable people. Let’s look at a couple of hypothetical examples.

How Often Do You Review?

How often do you refresh your goals, adjust your plan, and determine how and when to make changes? A financial planner does more than just monitor your portfolio. They act as your coach, motivating and guiding you when things get tough. They bring an objective perspective to the table and develop a customized strategy based on your financial priorities. The end result is increased confidence in your financial strategies and decision-making. You don’t want to suffer a financial setback just because you were too busy or too forgetful to keep up with your financial plan.

In Case of Emergency

What if the unthinkable were to happen and you couldn’t make financial decisions? Will your family be able to handle the details and figure out your financial plan? An advisor can offer a holistic overview of your net worth and determine what elements need to be in place to protect your family and your wealth. These are often things you may not be aware of, such as life insurance or a living trust.

Market Research

Investing is tricky business on a good day. Can you manage the emotions, anxiety, and possible second-guessing of your investment choices if you were living on a fixed income and the market were to face a correction? An advisor has tools to evaluate cash flow to help you determine the probability of your money lasting through your retirement years. They can also keep you accountable and committed to your long-term strategy in the midst of market ups and downs.

Lie #2: I Can Always Get Help When I Need It

If you were going on vacation, would you rather have everything packed ahead of time and enjoy your restful break? Or would you prefer to be disorganized and arrive without essential items, forced to then spend your time off running around shopping for things you forgot? When it comes to money, it’s the same idea. When you really need the help, you may have lost your most valuable resource – time. Instead of thoughtfully researching your options and making decisions with a clear head, waiting until you need help will result in a frantic scramble to just get things done.

Whatever it is you experience in life, having a financial planner on your team will help you stay on top of your money and prepare in advance for future milestones and events.

Lie #3: I Don't Need An Advisor, I Have Financial Technology

Financial planning has evolved. Years ago, it was about who had the most up to date information on a company to buy a stock, and the planning industry was mostly concerned with buying and selling stocks and bonds rather than portfolio management. Today, financial planning is more about what’s missing in your overall strategy, what have you not thought of, and what could you be doing that you’re not. On top of that, the financial planning process helps you emotionally connect with your goals so you can get on the right track. Technology, at the present time, can’t do that.

Technology has many good points, but several drawbacks as well. For example, you can find more information than you’ll ever need, but you’ll also come across plenty of misinformation which could lead you astray. It’s not uncommon for someone to research something on the Internet and find just as many pros as there are cons. If you want to save for your child’s college education, you’ll find articles touting the value of using a 529, a Roth IRA, or a Roth 401(k). How do you figure out which one is truly right for you? The abundance of information has created so much noise that in many cases, people don’t do anything at all.

While technology should be used in financial planning, it should not replace the role of an advisor. The importance of what advisors do from a human aspect is help clients sift through the noise and misinformation and encourage them to move forward in taking action.

A Change In Perspective?

Have you ever believed one of these lies? It’s easy to do, but the consequences are real. Don’t take a gamble with your money. Join forces with a financial advisor who can help you make the most of what you have, where you are, and get you positioned for a bright financial future. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@lpl.com for a no-strings-attached meeting to discuss your situation.