Financial Planning

Not Just Another Friday- Planning for The Inevitable

The death of a spouse is one of the most traumatic events most people will ever have to face.

This is why financial planning is necessary planning for this inevitable.

Last Friday morning as usual, I hugged, kissed and told my sons’ Nadario and Rashad that I loved them as they left for school. And as usual I told them to have a great day!  For me this was just another school day and for them I am sure they felt the same. Another Friday at school!

As they returned and we begin our ritual, which include me asking them about their day, the melancholic look on Rashad’s face indicated that it was not just another Friday at school. As he hugged and kissed me, in a low voice he lamented, “one of our teachers’ died today at school." Immediately, I felt his pain and begin to think of how her family must be affected by this.

I later learned that this teacher was not sick and I am sure that death was the last thing on her husband and children’s minds as they left for school and work on Friday morning.  

Unfortunately, this is not unusual, as we realize that death is a natural occurrence. What is surprising is that this is the sixth sudden death of a spouse that I have heard of in the last two weeks. Instances where a spouse left home expecting to carry out their usual daily activities and return home. But this is not what happened!

The death of a spouse is one of the most traumatic events most people will ever have to face. The necessary and inevitable grieving period immediately following such a loss is not the time to deal with difficult and often irreversible financial decisions.

However, unless those financial planning considerations have been planned ahead of time, the surviving spouse not only has to scramble to make funeral arrangements, but also must try and make sense out of insurance policies, pension, mortgages, investments and other financial issues.

During such a stressful time, the fewer unknowns, the better it would be for the surviving spouse. Therefore, I cannot emphasize enough the importance of financial planning ahead. All couple’s owe it to themselves to sit down and put in place a financial planning strategy for the surviving spouse.

Your plan should include a complete and accurate listing of all the assets and real property of each spouse in one easy to reach location known to both partners.This is not the time to keep secrets.

You should include: 

• All Life insurance policies with agents' names and how they can be contacted
• Auto and home insurance policies
• Employee benefits information
• A copy of any wills or trusts
• A list of stock and bonds owned
• Mortgage and loan information
• A list of all bank accounts and savings
• A list of all active credit cards
• A list of all financial assets and their location (such as rental property, etc.)
• If you own a business, there should be advance planning about how to either sell the business or how to properly manage the business so that it does not lose money. If there are other partners you should consider putting a buy/sell arrangements in place.

1. How property is owned,
   
2. How bank accounts are titled, (will the survivor have unencumbered access),
   
3. And review life insurance policies to make sure they name the correct beneficiaries.