5 Steps to Help Your Loved One Prepare Their Estate

Caring for your loved one has many challenges – none as difficult as preparing for the end of their life.

No one wants to think about losing someone you love. However, being prepared can bring peace for both you and your loved one.

5 Steps to Help Your Loved One Prepare Their Estate

The following are five steps to help your loved one prepare their estate:

Step One: Create a Living Will and Durable Power of Attorney for Healthcare

A living will is your loved one’s instruction list while they are still alive. It is usually drafted by an attorney so it is legally binding, but can also be done through an online form. Your loved one will feel more in control if they have a say in their final wishes.

Having a living will in place is useful when your loved one is no longer capable of handling their personal matters. Your loved one can designate who will have the power of attorney over their finances, estate, and other assets. This way you can be assured that someone is taking care of your loved one’s belongings – so you can focus on caring for your loved one.

A living will is often written along with a power of attorney for healthcare. This document focuses specifically on your loved one’s healthcare needs when they are no longer able to make decisions for themselves. As your loved one’s caregiver, you may already be designated as having power of attorney for their healthcare.

Some important health decisions that will either be made by your loved one or their attorney for healthcare are:

1. What treatment plans to undergo
2. When they should be resuscitated
3. If they will donate any organs
4. Any other essential medical decisions.

Step Two: Review and Consolidate Their Finances

Finances over a person’s lifetime is a complex task. Therefore, a professional should review all of their finances and assets – then consolidate them as much as possible.

As a first step, your loved one can bring as many accounts as possible under the same account number. This could include consolidating spending accounts, selling assets in other locations, and combining retirement accounts from different jobs under one 401(k) plan.

Once all their finances and accounts are consolidated, your loved one can list where these accounts and assets are located. Have your loved one document important information, such as account numbers and passwords.

If this feels overwhelming, you can always hire a financial advisor to help you and your loved one make the best financial decisions. Always remember, you do not have to do any of these steps on your own.

Tip Three: Write a Last Will and Testament

If your loved one has done the previous steps, the next step should be fairly simple – meet with an attorney to write up their last will and testament. This document provides their last wishes after their passing, in a legally binding way.

There are also online attorney options for drafting a last will and testament, saving on time and money.

There following are four categories to address in a last will and testament:

1. Consider anyone in their care. This could include children, dependents, or even pets. Your loved one can decide who will receive power of attorney and care for each of their dependents.
2. List all of their physical assets. These are their belongings, house, cars, and finances. They can divide all of the items between loved ones, businesses, and charitable organizations of their choosing. Another option is to choose one person who will be responsible for making that decision for your loved one after they are gone.
3. List all of their non-physical assets. These include savings plans, stocks, bonds, and other monetary holdings. These can also be divided up between loved ones and organizations.
4. Go over their debts. A simple credit check will help your loved one know exactly what money they still owe. It also tells them what credit cards are still open. They can consolidate their debt to make handling of any debt easier. Consider writing a list of account numbers and contacts, so those who take over their estate can take care of those debts after they are gone.

Not all of your loved one’s assets will be physical or have a monetary value. Your loved one can also write personal letters and create gifts of sentimental items for specific people.

Tip Four: Leave Instructions for Their Digital Accounts

With the abundance of technology comes another aspect of estate planning – power over digital accounts. Digital accounts include social media accounts, email, phones, and online drives.

Using a password manager helps to keep all your loved one’s passwords securely stored. They will be able to access their passwords while they are living – and easily pass on the login information to others after their passing.

These accounts hold precious information, pictures, and irreplaceable documents. If they do not use a password manager, they can also create a physical list of accounts and passwords along with their wishes for what should be done with each account.

Some social media accounts – like Facebook – can be turned into a memorial page for the person who passed. Other times, a person may simply want their information deleted so they have more control over what people can access and how they are remembered.

Tip Five: Finalize Their End-of-Life Wishes

Saying goodbye to your loved one can be the hardest part of the grieving process. A funeral or memorial service will help with last goodbyes. Your loved one can have a part in planning their funeral or memorial service – as well as what happens to their bodies after death.

One important decision is choosing to be buried or cremated. This is highly personal and should be made with plenty of thought. Once that decision is made, they can either choose a coffin and burial plot or a funeral cremation urns for ashes.

Planning a memorial or funeral service does not have to be a sad affair. Your loved one can help bring joyful and sentimental memories to life through personalized choices in music, speakers, images, and schedules.

Helping Your Loved One Emotionally

Taking care of your loved one’s estate is only half of the process. As a caregiver, you will also want to make sure your loved one is taken care of emotionally through counseling, therapy, or simply being there for them.

Let your loved ones express their emotions – both positive and negative. This helps them accept and prepare for their passing.

Always take care of yourself as well. Become a member of Caregiver Support Services for additional support – because no one should take this journey alone.