Money and Relationships: Wills and Life Insurance

Wills and life insurance: No one likes to talk about it, & it's really easy to avoid the topic because....well, you'll be dead & no one can yell at you for not dealing with it. The bottom line is this: an uncomfortable conversation now means peace for those you love. Death is hard enough without also having to make profound financial decisions at the same time.

Wills: There are several kinds of wills, but a simple will or "last will and testament" is fine for most people. If you have a business, a lot of assets, or a complicated estate, a living trust might be a better option. An estate attorney is your best resource to determine what is best for your particular situation. When preparing to meet with an attorney, you will need to determine what assets to include, decide who will get those assets, choose a guardian for your minor children if applicable & choose an executor. An executor is the person who will carry out your final wishes by distributing the assets listed, paying your debts, etc. This role can sometimes be an added burden to loved ones, so some people opt to pay a professional to serve in this role & their fee comes out of the estate. You should revisit your will from time to time. If you move, acquire assets, gain / lose family members, or have other major life changes, you should make updates.

Life Insurance: A life insurance policy isn't based on a number picked out of the sky, there is a real method to the madness that is choosing the benefit that is right for you. This amount reflects not only the dollars needed to cover final expenses, but also outstanding debt and potentially the amount of your financial contribution to the care of family members. It's important to note that "financial contribution" isn't just a paycheck. For example, the loss of a stay-at-home parent would create significant child care costs. An insurance professional can guide you to the type of policy and coverage amount that is best for you.

Share this post with your loved ones as an easy way to open up the conversation about end of life financial decisions & make your wishes known.