Before you read any further, heed this warning…today’s topic is serious. Not funny serious, but actually serious serious. I was asked by someone who has only recently survived a heartbreaking tragedy to talk about aspects of marriage that many couples overlook when planning their lives together. Things like wills, final wishes, and alternate income sources. I do realize that these are usually the last things two people in love want to think about, but that doesn’t make them any less important.
When a spouse dies, the husband or wife who survives them can find themselves buried in mounds of paperwork. You may think you know everything about your partner’s finances or notions of bequeathing, but if it isn’t clear and isn’t written down, you may find that you are aware of only a small piece of a much larger picture.
So how can you prepare for something like the death of a spouse without entering into morbid territory? The first step is to set up a filing system you and your partner understand. Both of you should know where to find documents like birth certificates, marriage certificates, life insurance policies, estate records, employer information like company benefits, military records, other insurance, information on your standing loans, government benefits, and tax information. This shouldn’t take too long when you spend an hour or so doing it together.
And all of this stuff needs to be transparent–it’s easy to say, “My spouse makes such-and-such per year,” but that doesn’t take into account other income, expenses, or debt.
Another step you’ll want to spend some time on is creating a list of assets, including real estate, stocks, bonds, savings accounts, and personal property. While you do this, make a note of and file any account numbers, land titles, stock or bond certificates, and other financial papers. You may think this doesn’t apply to your situation, but think creatively when thinking about assets. You (and your spouse) may not even realize the scope of what you possess.
If you have wills, mke sure you are each designated to receive all joint property automatically.
Finally, sit down with your partner and have a discussion about your final wishes. Even though it’s scary to think about, consider how you’d like your body to be handled or what you’d want your spouse to do if only your body was still alive (which is where power of attorney comes into play). Are there any assets you’d like to give to specific family members or loved ones? Anything you’d like to put aside for your children?
Openness and a willingness to approach a difficult subject candidly will help you here. There may be other issues pertaining to your particular circumstances that you’ll want to discuss. Just remember that life, as wonderful as it can be, is impermanent, and while being prepared for a tragedy won’t lessen its impact, preparedness can be a big help when you’re trying your best to cope.