Pondering over our eventual demise isn’t the most pleasant topic. However, it’s an inevitable part of life. Many people have considered their funeral preferences, yet often overlook the financial impacts of this unavoidable event.
HOW MUCH DOES DEATH COST?
According to the National Funeral Directors Association, the average price for a traditional casket funeral comes to $6,560, excluding additional expenses like a cemetery plot, a gravestone, flowers, or obituaries. When these costs are factored in, the total can easily reach up to $15,000. And what about the necessary end of life care?
Unfortunately, most people don’t simply pass away suddenly – many endure days, weeks, or even months in a hospital or under some form of care. These durations of stay can amount to several thousand dollars.
ARE YOU READY FOR THE INEVITABLE?
Preparing for death isn’t just about finances – do you have everything organized? Most people would prefer to have a will, laying out the details of their estate’s executor and the division of their property.
If you don’t have a will, matters can become complicated, with your estate possibly falling under the control of the government, and their control over it can be unpredictable and vary by state. Consult a lawyer to ensure your will is comprehensive, clear, and honors your wishes. This isn’t something you want to neglect.
ORGANIZING YOUR FINANCES
In addition to a will, here are a few other considerations in your preparation for the inevitable:
Life Insurance. Is your family financially dependent on you? If yes, then securing a life insurance policy is a good idea, so your family has financial support for a few years while adjusting to their new circumstances.
Passwords. Does your spouse or family have access to all your financial accounts? It might be beneficial to record them and secure in a safety deposit box. This includes all your accounts – from checking and savings to retirement and stocks.
Retirement Accounts. Navigating retirement accounts is another challenge. Without a surviving spouse, your children can inherit these. They might, however, face substantial tax penalties if they use the account before reaching a certain age. Discuss with your lawyer the best strategies to let your children inherit your retirement savings without severe penalties.
