Few people want to think about their death or their spouse’s death, and this is probably one of the reasons that a third of couples surveyed by NerdWallet do not have life insurance. It is important that people who are married plan for the passing of their spouse, especially if they have children. To ensure that people are prepared for the worst, they should understand how much money they will need if their spouse passes away as well as getting documentation in order.
Even if someone has a life insurance policy, it does not guarantee that his or her family will be financially taken care of. Couples should determine how much money one parent will need if their spouse passes away, including for expenses such as household bills, child care and college tuition.
People should also be sure to draw up a will and have financial documents put in order. A will can ensure that someone’s property will go to whom they want it to go to, and it can also determine who will care for minor children if both parents pass away. It is also necessary to ensure that financial documents are in order and easily accessible, so someone will not be struggling to track down insurance policy information while trying to deal with their grief.
There is a variety of legal documents related to estate planning, but which documents are necessary will depend on each person’s situation. Some people may be satisfied with just a will, but other individuals may need to take advantage of trusts and powers of attorney. A lawyer might be able to assist someone in determining the best way to plan the estate and draft appropriate documents.