Prepare today for tomorrow's unthinkable

Give your family the gift of organizing your finances

By Mark Yatros

Imagine being a 42-year-old parent of two young children when your seemingly healthy spouse dies unexpectedly. Now, imagine that in the midst of your grief and helping your children through theirs, you must suddenly take sole charge of your family finances. Will you have any idea where to start?

Even if you’ve played an active role in running the household budget, unless you have a written record of everything that makes up your finances, you’ll probably spend countless hours piecing together your financial life. From being confident that every account your spouse held is accounted for to knowing you’re receiving the correct survivor benefits – it’s a lot, especially when combined with the anguish of losing a spouse.

Gather your financial info now

Fortunately, there are steps you can take now so you're as prepared as possible should you or your spouse pass away unexpectedly. 

One step you can take is to join us for the Family Love Letter Workshops. During the workshop, experts will lead you through gathering your important financial information, so it is ready for your survivors should something unexpected happen.

The first workshops will focus on your financial information and liabilities and will be held:

• The afternoon of March 16 at Clara’s on the River in Battle Creek

• The evening of March 16 at the Oshtemo Community Center in Kalamazoo

 The second workshops will focus on insurance, benefits, and other information and will be held:

• The afternoon of May 23 at Clara’s on the River in Battle Creek

• The evening of May 23 at the Oshtemo Community Center in Kalamazoo

 Save your seat at the workshops by emailing pwithrow@allegiantws.com or by calling 269- 218-2100.

If you are unable to attend the workshops, you can still prepare.

Begin by working with your spouse, gathering all information about your assets and liabilities, and putting them in one location. Be sure to share the location of the information with your children (if they are old enough), a close friend or relative, and the person you choose to administer your estate.

Following is a breakdown of the information you should include. While it may seem overwhelming and time-consuming, the information you provide will ease confusion for your loved ones and help them avoid costly mistakes.

Advisors and financial information

Advisors

List all advisors, including your attorneys, financial advisors, CPAs, etc. Include their names, telephone numbers, emails, and addresses. If you have multiple advisors, note which advisor you see for which issues.

Titling of assets

Ensure that all your assets, including life insurance policies, are titled correctly with up-to-date beneficiaries. Doing so will ease the probate process, the distributing of your assets to your heirs, and finalizing income and estate taxes.

Retirement assets

Include your social security number, the type of accounts you own (401(k), Traditional IRA, Roth IRA, mutual funds, stock options, etc.), the current monthly benefit amount for every account, and if payments are received via check or direct deposit. If payments are deposited directly into an account, list the account and the account number.

Military retirement and survivor benefits

List the type of benefit, amount, account number, and how benefits are received. Additionally, you should consider the Survivor Benefit Plan, which would pay your surviving spouse a monthly payment to help offset the loss of your military retirement income (which will stop when you pass away).

Annuities

Make a note of the annuity company name, your account number, the policy service phone number, the maturity date, the beneficiary, the total purchase amount, and the account value. Also, leave instructions on where the policy is located.

Brokerage accounts

List the financial institution’s name and address, your contact at the financial institution and their contact information, the account balance, the account number, and detailed instructions as to where your statements are located.

Individual stocks

Make note of the company name, if the stock is publicly traded or closely held, your initial investment, estimated value, the number of shares certificate number, the beneficiary, and where the stock certificate is located.

Bonds

Note the type of bond, its value, and maturity date, along with the issuer, beneficiary, and where the bond certificate is located.

Cash and cash equivalent accounts

List the financial institution’s name, address, phone number, type of account, account number, account balance, and beneficiary.

Custodial accounts

Note the type of account you’ve created for your children, grandchildren, or other minors, along with who the account benefits, the financial institution, the account number, your account representative, and contact information, and where account statements are located.

Real estate and property

Record all real estate and any property you own, including your personal residence, commercial, and rental property. List the address of the property, the name on the title, the purchase price and date, the estimated current value, and the mortgage balance. Be sure to include detailed instructions of where deeds can be found.

Frequent flier miles and other reward programs

If your airline/travel reward program allows transfer upon your death, record the program name, your account number, the total rewards you have built up, and where documentation can be located.

Notes receivable

If debts are owed to you, make note if you wish to forgive the debt or have it repaid to your survivors. List whom you loaned the money to, the amount, how much is still owed, and proof of the loan.

Lawsuits

If you are a plaintiff or defendant in a lawsuit, share an explanation of the lawsuit, the amount in question, the attorney’s information, and details of where any documentation can be found.

Loaned and stored assets

If you have loaned assets to anyone, make note of whom you lent them to, their contact information, and precisely what you loaned. If you have stored assets, note the item, where it is located, and how to retrieve it.

Medical assets

If you have any medical assets such as embryos, sperm, ford and placenta blood, stem cells, or blood, make a note of which assets they are, where they are stored, the account number, how to reach the facility, and where proof is located. Also, note your wishes for the use or disposal of the assets.

Unclaimed assets

Visit unclaimed.org and search for any unclaimed assets in your name. Note when you visited the site and if you found any assets.

Liabilities

Mortgages, loans, liens, lines of credit

List the type of debt (mortgage, auto loan, personal debt, etc.), how much is owed and to whom, the creditor’s contact information, and instructions on where any supporting documents are located.

Credit card information

Record every credit, debit, and store charge card you have. Include the account numbers, the credit limit, and the current balance. Also, list the website associated with the card, your username and password, if insurance will pay the balance upon your death, and if you have automatic debits to pay the card balance each month.

Personal guarantees/responsibilities

If you have ongoing personal financial obligations that you want to continue, such as contributing to a child’s or grandchild’s education fund, note who benefits from the commitment, contact information for the recipient, how much you contribute, and how often.

Leases

If you have any lease, make a note of the lease specifics, who payments are made to, their contact information, how much is owed, and when the lease expires. Also, note if your life insurance is earmarked to pay off the lease.

Subscriptions

Create a list of every type of subscription you have, including newspapers, magazines, electronic newsletters, memberships, professional/business services, cell phone service, ID protection plans, software and external backup services, television service subscriptions, etc. Make a note of the name and expiration date; if there is an automatic debit, note which account receives the debit and the account number.

Monthly budget

In case you become incapacitated, and someone must take over your finances, share a written, detailed copy of your monthly budget.

If you’d like further guidance on steps you can take now to prepare for the future, we’d be happy to help. You can schedule a free consultation with Allegiant Wealth Strategies’ team of experienced financial advisors here. 

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to ensure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

Allegiant Wealth Strategies offers securities and advisory services through Commonwealth Financial Network®, Member FINRA/SIPC. Allegiant Wealth Strategies has offices in Battle Creek and Portage, Michigan, from which we serve Calhoun County, Kalamazoo County, and Kent County (Grand Rapids). The Allegiant Wealth Strategies team offers no-obligation financial planning consultations; call 269-218-2100 or contact us here.