Thursday, September 3, 2020

Should You Financially Plan For Death?


Many of us don’t like to think much about death. However, estate planning can be necessary for reducing the cost and stress for those we leave behind. Here are just a few questions to ask yourself when financially planning for death.

Who will pay for your funeral?

Funerals can cost thousands. As a result, many people now financially prepare for their own funeral so that loved ones don’t have to take on the burden. Some funeral companies have pre-payment options that allow people to pay for their own funeral in instalments – this allows you to plan out the funeral that you want while also paying it off gradually. Other people set aside savings that can be used to fund the funeral.

What will happen to your property?

If you own a property, you may want to consider who inherits this and how it is passed down to them. Writing a will is the best way of guaranteeing who inherits your estate. You can alter your will at any time if you change your mind – for this reason, it’s never too early to write a will. As for how your property is inherited, you can choose between either a life estate deed or a transfer on death deed, which you can learn more about here at this Boppre Law Firm website. How the grantor inherits your property can affect other costs such as Medicaid and the tax that your loved ones may pay. As a result, it’s worth spending time researching your options to make sure that there aren’t any of these hidden costs.

Will you be leaving any funds behind?

Some people like to leave designated funds behind to their loved ones. These could be in the form of a trust fund that is directly handed down to the trustee and not taxable. Alternatively, you may prefer to simply keep the money locked up in a savings account that you yourself can still dip into if you need it. It’s worth visiting your local bank and seeing what options they have. A higher interest option could allow you to accumulate more funds without having to put so much in each month, although some of these accounts have penalties if you do need to withdraw money.

Should you take out life insurance?

A life insurance scheme could help to pay out compensation when you die – which could be useful if you have no savings or assets to pass down. Life insurance can often help pay for funeral costs. There are different types of life insurance plans that you can look into. The older you are and the more high-risk your lifestyle is, the more you are likely to have to pay. That said, it’s worth always shopping around and comparing rates – some insurers have specialist schemes available for those over 70 that are much cheaper than those provided by general insurers. This guide at Money Expert delves more into different types of life insurance and what they can provide.


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