__Good stewardship requires that we prepare ourselves financially for the time when the Lord calls us home. Single or married, you need to be ready.__

Death is a fact of life, so to speak. Proverbs 13:16 says, *“In everything the prudent acts with knowledge,”* so, whether you’re a newlywed, single, or celebrating your 50th year of marriage, it’s important to plan for the future. As hard as it is to think about your own death or that of your spouse, it’s something you have to do. After all, death isn’t a matter of *if*, but *when*.

There are many financial decisions to be made following a death and most of them will be much easier if you, and your spouse, if you’re married, have updated wills. This is task number one.  Legal powers of attorney and health care directives are also critical. You’ll need an estate attorney to draw these up.  It’s an expense, but don’t put it off.

The goal of estate planning is to ensure that your wishes are met after you die, both personally and legally.  Your loved ones will appreciate knowing exactly what you want, at a time when it can be hard to make decisions. You should prepare instructions for your memorial service or funeral, if possible. That seems gloomy, but it’s actually a very loving way to help your family and friends begin the grieving process.

As you’re getting your will put together, you’ll also need to make two important lists. The first is a list of all your financial accounts.  This includes bank accounts, investments, credit cards, mortgages, retirement, outstanding loans, and pensions.  It’s important to keep this list updated.

The second list names the persons who will need to be contacted in the event of your death, or that of your spouse, along with phone numbers and addresses. This includes family members and friends, financial institutions, pension and life insurance companies, Social Security, the IRS, and credit bureaus. You might also include contact information for your college alumni association, and other organizations you’re involved with.

While you’re organizing your financial papers and contact list, you should update the beneficiary designations on all of your bank, investment, and life insurance accounts.

Make sure someone you trust knows where all your important documents are located. If you’re married, your spouse needs to know how to get hold of this information.

With the help of an estate attorney, arrange for major assets, such as vehicles and your home, to be owned jointly, or transferred on death. This will help you avoid probate on these assets and secures them for the survivor’s use if you’re married.  Each state has different rules for property and probate, which is why having professional help is so important.

__For married couples, it is important that *both* spouses understand the family finances. Too often one spouse will handle all of the money matters, and if that spouse passes away first, the survivor is completely in the dark.__

If you use credit cards, it’s important that each spouse has one in their own name. That’s because when a card holder dies, the issuer must be notified. At that point, the card account will be closed, and the surviving spouse can no longer use that card, even if he or she is listed as an authorized user.

A third point for married couples to consider ahead of time is what the surviving spouse’s income will be.  For most people, losing a spouse means losing some or all of that income, which may require significant lifestyle changes.  Consider this ahead of time, and plan accordingly.

If you’re retired and on social security, know what your benefit will be if your spouse dies. If you both get Social Security checks, the survivor gets to take the larger monthly payment.  Have the documents accessible, so you can start the Social Security survivor benefit process immediately when one spouse dies.

We can’t emphasize enough the importance of communication in these financial matters. It’s critical to talk about the future with your spouse and, if appropriate, with your children or other family members.  That way, everyone knows what to expect.  It’s difficult, but consider the alternative.  Not communicating now can leave the surviving spouse in a vulnerable position, making a difficult time even more stressful.

__We can’t know when the Lord will call us home, but we do know where home is. Philippians 3:20 reminds us that *“our citizenship is in heaven, and from it we await a Savior, the Lord Jesus Christ.”*  Our job is to be ready.__

You can __[listen](https://www.faithfi.com/search?q=Preparing%20for%20the%20Inevitable&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to the related podcast on this topic.

FaithFi

Articles

Good stewardship requires that we prepare ourselves financially for the time when the Lord calls us home.

MANAGE | Mar 7, 2024

Preparing for the Inevitable

By: Carolyn Calupca

Where Faith Meets Finance

You May Also Like