Many people don’t spend much time thinking about what happens to all their stuff after they die. Not IF they die. WHEN they die. That time will come for all of us eventually.
Addressing what to do with your things after death is admitting mortality. Thinking about a time when you aren’t here any more can be a hard task. Many folks choose to just simply ignore the issue.
Don’t.
Don’t ignore the priorities of others after your death. Making absolutely no plans for your assets after you’re gone can make life very hard for those that are close to you. If you die with no instructions for your heirs, they are bound by the laws of your state of residence. That can be absolutely no fun at all.
The easiest (and cheapest) way to help ease the transition after your death is to check the beneficiaries on all your financial accounts. Look at your bank accounts. Do they have a TOD (transfer on death) listed? If you’re married, are they set up for your spouse to be able to access them immediately? Bills don’t stop arriving even though you’re gone.
Look at your retirement accounts. Do you have beneficiaries named? If you’re married, your spouse is assumed to be your beneficiary, but it makes the whole process much easier if you name them anyway. If you don’t want your spouse to be the beneficiary, then you have to make sure you get the proper documentation for that. If you’re not married, it’s still important to name your beneficiary, as it gives you control over who inherits your assets.
An added and important part of having beneficiaries named is that these assets don’t go through the probate process. That means they’re not frozen for months while your heirs wait for a court to finalize your estate and release the funds. Estate legal fees can be lower as well, as there are fewer assets to put through your estate.
Most employer-sponsored plans let you name your beneficiary online. It takes about 10 minutes to log in and make that happen. Don’t ignore it. Get it done. It’s important.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.