Get your affairs in order before you die
Losing your parent or partner is one of the most difficult things to deal with. Most people think its macabre to think about, much less plan for your own death.
Sometimes you have time to get your affairs in order. If there is any positive to getting cancer it is that it gives you time to get your affairs in order and say your last goodbyes. Often your passing may be sudden.
You can make it easier for your family and remove the inevitable stress by simply taking time out to create a simply checklist and summary of your affairs. Of course this needs to be regularly updated.
There is even a New Zealand Government website on death and bereavement covering probate and wills, what you need to do when someone dies, what to organise before you die.
Here is a checklist of how to prepare for the inevitable.
Your last Will and Testament
There are many web sites offering low cost online access for preparing your Will.
A Will serves two functions:
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- To appoint an executor of your estate.
- To express the deceased’s wishes about distribution of assets.
What to watch out for:
Wills can be contested. If taken to Court a decision could be made that the distribution is unfair. An executor can be personally liable if the distribution is considered unfair. This is why its better to use an institution rather than a friend for the executor.
For complicated affairs such as children from mixed marriages, a Family Trust may give more certainty.
For many of the low cost options on the internet the catch is that they often appoint an administrator of the Will. You need to check how they will charge for settling your affairs. Will it be on a hourly charge, a flat fee or as is most common a percentage of the total asset value.
The hourly or flat fee charges will usually amount to $10,000 to $15,000. The worst situation is when a percentage is charged, eg. 3% of the total estate (before taking into account any debt liabilities).
An Enduring Power of Attorney
These are generally set-up at the same time that you set-up your Will. There are two types:
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- Personal Care and Welfare
- Property
The documents outline how incapacitated you have to be to let a specific person handle your affairs. They can act on your behalf to pay for bills etc.
Once you die the Enduring Power of Attorney stops.
Life Insurance
It is a good idea to have life insurance to cover any outstanding debt so a surviving partner does not have to worry about this.
List of accounts and contacts
We know from personal experience it can be daunting to go through a loved ones affairs working out what accounts and assets they had. While this is often dealt with by a solicitor when they action a probate, the process can be made a lot simpler.
Have a list and give it to your family, or at least tell them where to find it in the event of your death or incapacity. The list should include:
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- bank accounts
- contact information for your solicitor, doctor, financial adviser etc
- assets such as investments, jewellery
- debts and bills; utilities, subscriptions, auto-payments
- a list of friends that you would like to be contacted
- where your Will is kept and with whom
If someone had to take over your life , what would they need to know?
Funeral arrangements
Who’s better at writing your obituary and eulogy than yourself?
You can leave a plan for your funeral; the music, whether to be buried or cremated, family photos to use. Are there any charities or services you would like to support.
A nice touch is a little speech or video that can be played as your last message.
At the end of the day you will not be around so your family has the final decision, but you can make it easier for them.
Booking a flight at short notice can be very expensive. Air New Zealand offers a compassionate ticket for family emergencies. The maximum flight cost is $169.
Finally
Remember the dead have no privacy. Do you want your family reading your diary, love letters etc?