Single, no kids?

— Here’s who can handle your estate plans.

I had a chat with readers about estate planning.

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I had no idea how passionate people could get about the fate of a paid-for house.

To catch you up, my husband and I are updating our estate plan. In the process, we learned that our three children did not want to hold onto our mortgage-free home after we’re gone. Our eldest daughter, who will be handling our affairs, persuaded us that the best plan would be to sell it and split the proceeds.

Thousands of readers weighed in on last week’s column, “Our kids don’t want our paid-off house — or our ashes.” It prompted me to hold a live chat on the topic of inheritance. Here’s a recap of the most universal questions, which includes answers to questions I couldn’t get to during the live chat.

It’s a good time to have your own discussion about the things you’ll leave behind. And if you don’t have a will, get one. Now.

Q: How do I find someone trustworthy to do my will?

A: Ask friends and family. And if that doesn’t work, contact the local bar association in your area.

Go to the American Bar Association website (americanbar.org) and search for “Estate planning info & FAQs.”

Q: What do you do if you don’t have children? I’m worried about honesty and reliability.

A: I get this very question from singles all the time. And it’s a hard one, with no right answer, to be honest.

An estate attorney can be the executor of your will, but many I’ve interviewed won’t because it’s a huge responsibility and one that might not be fulfilled for a long time.

For example, what if you set this up with an attorney or firm, and the attorney retires or the firm dissolves? Often, the attorney who retires will pass on cases to a new firm.

You can also hire a financial planner to handle your affairs. But you can run into the same issues with this type of professional.

I suggest you develop deep connections with trustworthy friends and/or extended family. Because frankly, somebody needs to watch the professional. (Just saying.) So maybe the person who handles your estate is your best friend. And if you both are getting older, it could be your best friend’s child. In fact, my husband and I had named my best friend as the personal representative of our estate when our children were younger. We are now changing it to name our daughter, but you get my point.

And it’s worth noting that some folks have such strained relations with their kids that it makes more sense to name someone else to handle their affairs after they are gone.

Q: I volunteer at an animal shelter, which has made it clear I need to make plans for my pets. What is the best way to ensure good care for my two cats and my horse?

A: You can provide for a pet upon your death. When billionaire and convicted tax evader Leona Helmsley died in 2007, she famously left her Maltese a trust fund valued at $12 million. A judge later reduced it to $2 million.

You can’t leave your pet cash directly because animals are considered property, according to Nolo.com, and “one piece of property cannot own another piece of property.”

But you can set up a pet trust that will allow you to set aside money and name a trustee to care for your animals. The American Society for the Prevention of Cruelty to Animals (aspca.org) has an explainer on what to consider when setting up the trust. On the website, search for “Pet trust primer.”

Another option is finding a person or an organization willing to care for your pet. If you have the resources, you can leave money for care and feeding.

Q: We just moved to a retirement community, but my husband wants to keep our paid-off house so our kids can inherit it with a lower tax burden. I think it’s best to sell now. You?< A: I would ask the children and an estate attorney. It’s true that the children would get a stepped-up basis, but you might want to sell and hold on to the money in case you need it for long-term-care expenses. Also, keeping the home means maintaining it. That could involve hiring a property management company and renting it out if your children don’t want the responsibility.

By the way, let me explain stepped-up basis tax provision, which involves capital gains. When you die and your heir or heirs inherit your home, they get it at its current market value or the stepped-up basis. This means your heirs can escape paying capital gains on the property.

Q: How much info should we share with an adult child with a few bad money habits? Our adult daughter has moved home to deal with some health issues and to try to get her career launched. She has said it would be helpful to “understand Mom and Dad’s financial situation” to know what kinds of assistance she can get from us. We want to help her, of course, but she has also demonstrated a willingness to treat us like an ATM. This is not a question of informing her so she can manage our finances after we die. (Her sister is going to get that info.)

A: Follow your instincts. I suspect she wants the information for selfish reasons. She does not need to know your business, especially since you have designated the other daughter to handle your affairs.

Most importantly, the daughter in question does not need to know because she hasn’t demonstrated a sufficient amount of financial responsibility.

Complete Article HERE!

Why I’m Preparing to Die

— And Why You Should, Too

Most people don’t want to think about preparing for death. But we’re all “future corpses” and need to plan accordingly.

by Jennifer Dines

I love the illusion of immortality. The $18 billion anti-aging market gets a portion of my weekly paycheck, and the belief that I just might stop my biological clock from ticking quashes any qualms I might have about spending my hard-earned money on a bevy of beauty products. I slather on sunscreen—atop layers of self-tanner, of course—to keep my skin from wrinkling, avoid both alcohol and sugar to keep the weight off, and practice Pilates to keep my spine young and flexible. Despite the increasingly popular gray-hair trend, I treat my locks the old-fashioned way: I line my hall closet with boxes of bleach-blonde drugstore hair dye and avoid looking at my roots under bright lights between colorings.

Keeping death at arm’s length in modern America means not only keeping its markers off the body, but its specter far from the home. A mere century and a half ago, American funerals were mostly family affairs, the body displayed for visitation in the parlor of the home and then buried on family property or in a nearby churchyard. It was only when embalming became popular—following the two-week cross-country viewing of President Abraham Lincoln’s body after his untimely assassination in 1865—that dealing with death became a professional affair, the purview of the undertaker, mortician, and funeral home. Norms shifted accordingly, and by the early 20th century, even the Ladies Home Journal took a stance against death being allowed in the domestic sphere. The publication’s editor banished Victorian-era front parlors from the magazine’s pages and rechristened those spaces as “living rooms” meant for interaction with anyone other than dead family members. Parlors were “perceived as dark, gloomy, and oppressive,” according to one architecture professor in a 1995 Washington Post article about the evolution of living rooms.

Of course, no matter how hard we try to stop the clock or to sweep the shadow of death from our doorsteps, the human body will not last forever. Each and every one of us will die, and, when we do, someone—if we haven’t made arrangements—will have to deal with our funeral expenses. So, despite how uncomfortable people may feel about contending with their eventual death, pre-planning for the end of your life will save your loved ones from facing the distress of making huge financial decisions at a time of loss and grieving. A few simple steps and family conversations can go a long way in preventing additional stressors.


In the past few years, I’ve faced the deaths of several family members, including that of my 94-year-old grandfather, who struggled with dementia at the end of his life, in January 2017, followed by that of my 67-year-old father-in-law in August 2019. How their deaths were handled could not have differed more.

My grandfather, a lifelong Baltimore Catholic, passed away in a hospital. He had pre-planned for his funeral arrangements, which followed the schema of practically every funeral I have ever attended. The funeral parlor embalmed, made up, and laid out his body. My family members and I hosted visiting hours at the funeral home for two days to greet mourners and spend time together looking at photos of my grandfather’s life. Each of us approached the kneeler in front of his casket one by one to pay our respects. On the second day, a pastor from my grandfather’s parish led a service, which included readings by my mother and her sister. The attendees then headed to their cars and followed the hearse for the procession to the cemetery where, after a few words from a religious official, we watched the coffin get lowered into the ground. These final ceremonial moments in the proximity of my grandfather’s body allowed for sufficient grieving and provided me with a sense of closure about the end of my grandfather’s life. Afterwards, we gathered for lunch at a waterfront seafood restaurant

But when my father-in-law Rob died unexpectedly, everything felt terribly wrong. His neighbors in Oregon—across the country from where my husband and I live in Massachusetts—found his body after he failed to walk his dog for several days. The police in Oregon made the required calls to reach my husband, Rob’s next of kin, in order to make the arrangements. Over the next few days, in the throes of bereavement, my husband juggled the many challenges that come with laying to rest someone who hadn’t left behind any instructions for the living for how to handle their death.

Unlike my grandfather, Rob had no money set aside to pay for his arrangements. No one in the family knew how he wished to be memorialized. And even if we had known his wishes, we did not have much money of our own to spend. His body ended up at the Pacific View Memorial Home in Lincoln City, Oregon. My husband and his brother paid $1,095 for his cremation and $15 for a cardboard box for the remains. I stayed home in Boston with our three young daughters while my husband went to clean out Rob’s trailer and receive Rob’s ashes, which he released from a cliff into the ocean below. I still grieve the fact that I never got to say goodbye.

The shame of how poorly Rob’s life ended causes my husband and me pain to this day. On our most recent anniversary, we avoided looking at our wedding album because seeing photos of Rob felt too painful. We cried in one another’s arms, discussing how he deserved not only more time to live, but a far better memorial. Reflecting on these two deaths convinced me that I needed to make a plan to ensure that my family will know what to do when I die. But I had no idea how to actually take action. I put the item “death planning” on my long term to-do list, alongside items like “kids’ college savings” and “look into solar panels”—you know, the type of things that can always “wait until later” (whether that’s true or not) compared to more pressing matters, like putting food on the table, paying the bills, driving the kids around, and everything else it takes to keep a young family afloat.


The most terrifying vision of death I can conjure has nothing to do with, say, violence or disaster. Instead, in this rather banal vision, my husband passes away before me in a hospital bed. A flat green line appears on a monitor accompanied by a long piercing beep—and I am left to live without him for the first time since we met when I was 21. Between this unnerving thought and the fact that I really had no idea where to begin, no wonder I postponed death planning—everything from legal documents to funeral arrangements—over and over again until, finally, last spring, a lawyer set me straight.

“You have three minor children and no will?” he asked, sounding more than a little incredulous. I felt taken aback by his tone but quickly understood the urgency when he explained that, without this document in place, our children would be put in the hands of the Massachusetts legal system if we passed away. I found the thought of my school-aged girls being at the mercy of the Massachusetts Department of Children and Families absolutely horrifying given this institution’s history of overlooking and even enabling sex trafficking and child abuse.

The attorney I hired to write my will also emphasized the importance of term life insurance. I had previously thought of life insurance as a way to cover burial costs and funeral expenses, but during this appointment, I came to understand that these policies would cover my children’s basic expenses until they become financially independent adults. I see how society treats those in need. If I don’t plan for my children’s living expenses, I know that no safety net out there will catch them.

The day after my meeting with the lawyer, I began the process of taking out a $1 million life insurance policy. This seems like an overwhelming amount of money, but it’s what would be needed to provide for our children—their food, clothing, extracurricular activities, preventative health care, and more—until my youngest, now 7, turns 22. My husband and I will pay about $1,000 a year for this policy, but it is necessary in a country where family is made to be the strongest social safety net.

All in all, I tried to keep these conversations businesslike and non-emotional, but tears came to my eyes and my voice cracked more than a few times. I feel like I have done my duty as a mother in ensuring that our children get at least some financial stability if I cannot personally take care of them.


With the will and insurance out of the way, I could finally get to the “fun” part: contemplating my own funeral and burial. I might not know when my life will end, but I can at least plan my memorial service and decide where my body will rest.

Even prior to starting this journey into serious pre-planning, I had a place in mind: Forest Hills Cemetery in Boston. This 275-acre garden cemetery, founded in 1848, features a rolling landscape, Victorian and contemporary sculptures, historic markers, and a central lake. It may sound strange to modern ears to spend one’s leisure time amongst the dead, but I have always considered Forest Hills less of a graveyard and more of a park, and I go walking there at least weekly. And, in fact, that’s what its designers intended: during the mid 19th century, garden cemeteries like Forest Hills not only solved the problem of crowding in urban churchyard burial grounds, but their beautifully manicured grounds also made them a “regular gathering places for strolling and picnicking.”

Because Forest Hills serves as the final resting place of many of Boston’s elite, I assumed this option would be out of my financial reach. But I decided to make an appointment with the cemetery office to find out what it would take to land my dream burial space.

For the first part of my visit, I joined the Assistant Director of Operations at Forest Hills to get information on all of the available options. Burial spaces range from $3,950 for a grave with a flat marker—perhaps, perversely, the most affordable route to land ownership in Boston’s exorbitantly priced and low-inventory real estate market—up to $60,000 for above-ground internment in the exclusive Dearborn Pavilion. Full-casket burials cost $2,300, while cremation burials are set at $1,500; adult cremation alone, sans burial, costs only $435. My visit—which was, dare I say, delightful—ended with a tour of the grounds, during which my guide pointed out the burial sites of the cemetery’s most famous denizens.

None of these prices set off alarm bells. I learned that financing is much like a mortgage. We could put a third down for a plot and pay the rest later. For basically $1,300, my husband and I can secure a shared spot for two urns, one for my remains and one for his. If we buy our plots in advance, we can absolutely afford to place our remains in Forest Hills, a place that has brought us great joy in life.

But before the burial comes the funeral, which—like any good party—comes at a price: the funeral home, the site for the embalming, the casket, and the cosmetic treatment of the body can all add up. I definitely want the royal treatment when I die—ideally, my mourners will find me looking youthful and gorgeous with a perfectly made-up face and a Victoria’s Secret model body, laid to rest in an elegant satin-lined casket à la Stephanie Seymour in the Guns N’ Roses “November Rain” video—but I realize that my money may be better put to use in life than in death.

How much might my dream funeral cost? At the funeral home nearest me that actually had prices listed online, a “complete traditional funeral service” including visitation, embalming, body preparation, and hearse costs $5,795. (While the Federal Trade Commission is currently considering making online price lists the law, many funeral homes still want the customer to get in touch with someone who will persuade you to spend a little bit more on your loved one’s arrangements than you had initially planned.) That $5,795 package does not include a casket, though the funeral home does provide a price list for caskets, ranging from $850 for a flat cloth-covered particle board to an $8,690 solid bronze model. Since the funeral home cannot legally require me to purchase a casket from their stock, I could also shop around on my own, perhaps even through Costco or Amazon.

Technically, no one even has to use a funeral home, at least in my state of Massachusetts. But even if I elect the more fiscally conservative option of having my body cremated at Forest Hills Cemetery, bypassing embalming and viewing entirely, I still need transportation from my place of death to the crematorium. For example, if I pass away in a nursing home, the facility would expect someone to quickly remove my body from the premises. My friends and family can legally take care of this themselves to save a few bucks, but do I really want them to have to find a sizable container and vehicle on the fly when funeral homes have workers on call 24/7 to take care of this?

I hope that, by the time I die, I have made all of these arrangements, so my family can focus on dealing with their emotions and then getting on with their lives. Despite all my planning, the uncertainty of death itself still frightens me.

Will my mind simply shut off, like the black screen at the end of the series finale of The Sopranos? Will I turn into a ghost, perhaps floating above my body and then hovering around the spaces I inhabited in life? Will a Virgil-like figure guide me through Inferno, Purgatorio, and Paradiso? What scares me the most? Not knowing how my last breath will feel. Will I gasp, trying to hold on, or will I feel relaxed? I like what True Detective’s Rustin Cohle, who spends many of his work hours—and a great deal of personal ones as well—looking at photographs of the deceased, puts forth: “They welcomed it. Not at first, but right there in the last instant. It’s an unmistakable relief. See, ’cause they were afraid, and now they saw for the very first time how easy it was to just let go.” I hope it’s easy.

It seems that most people don’t want to think about death planning. Victoria J. Haneman, a professor of trusts and estates, has noted that an estimated 70 percent of deceased people are found not to have done estate or burial planning. And this creates the perfect storm when emotions take hold during the aftermath of someone’s death. Without such planning, many families are put in a precarious financial situation.


Haneman’s 2021 article “Funeral Poverty,” published by the University of Richmond Law Review, lays out the financial impact of the American funeral on families. The average cost of an adult funeral with a viewing exceeds $9,000. This fact is all the more remarkable, Haneman points out, considering that 40 percent of American families say they would struggle to cover an emergency $400 expense. Whatever their finances, the bereaved are in an emotional state that makes for a “vulnerable consumer who is unlikely to be price sensitive and is susceptible to emotional manipulation” at the time of purchase. After all, who wants to cheap out on a particle board casket for a beloved relative—especially at a time when you are probably thinking on a loop about how much you loved them, how much you will miss them, or perhaps how poorly you feel for not treating them better or spending more time with them? In a society that often equates spending with love, financing an elegant funeral may symbolize affection or atonement for the bereaved.

But what if you simply can’t afford it? Haneman writes: “When all potential resources have been exhausted … the last remaining options are to beg, borrow, or surrender” the body. In recent years, online crowdfunding has become a popular means of fundraising for funeral expenses. GoFundMe staff even coaches people on how to make their pleas go viral. Prior to learning the true cost of funerals, when I would see these campaigns on my social media, I didn’t understand exactly why families needed the money. Now, I make a small donation whenever I can.

Another option is borrowing, either via credit card or, for those with bad credit, a loan with an interest rate of up to nearly 36 percent (for comparison, interest rates are around 7 percent on average for a home mortgage or 20 percent for a used car for someone with a low credit score). Families can also surrender the deceased, a situation which, depending on the state, results in either cremation or the burial of remains in a common grave. It’s one thing to surrender the body to the state; in some cases, bodies are never claimed by anyone. While the United States does not track the burial of unclaimed bodies, the Washington Post reported in 2021 that these indigent burials are the fate of tens of thousands of Americans each year.

Desperate and grieving families may become vulnerable to a far less savory option: non-transplant tissue banks. While organ donation for transplants is closely regulated, these unregulated “chop shops” dissect the bodies, sometimes even dismembering them with a chainsaw, then sell the parts, for profit, to medical researchers and even unspecified “other buyers.” A 2017 Reuters investigation detailed the corruption endemic to the commercial market for bodies. They solicit the donation of a corpse, promising that, after organs and cadaver tissues head to medical facilities, they will cremate the rest of the body and return the ashes to the family. But sometimes families don’t get back what they expected from these fraudulent companies.

What solutions exist to mitigate funeral poverty and debt? In 2021, FEMA dedicated $2 billion in funeral expense reimbursement to those who lost a loved one to COVID-19. With proper documentation, families can receive up to $9,000 in relief. (Compare this to the $255 death benefit—a maximum dollar amount that has been capped since 1954—received by the spouse of the deceased from Social Security.) The FEMA funeral benefit appears to be ending in September 2025.

Birth and death constitute the two life events that all people, since time immemorial, have in common. Since the public currently provides funding for nearly half of all births, why not socialize the cost of funerals for everyone? While some states provide financial assistance for low-income people, these funds fall far short of the national average funeral cost of $9,000. Why should anyone go through financial distress because of the death of a loved one? When mourners can gather together at a funeral and move through the grief cycle together, they can more readily move towards acceptance and continue on with their lives.


FUTURE CORPSE. A black T-shirt with these two words in capital letters across the chest lies at the back of my dresser. I bought it a year ago but have yet to muster the courage to wear it.

I purchased this provocative piece of clothing from the Order of the Good Death, a group whose stance is simple: “Everyone deserves a healthy relationship with mortality grounded in accurate facts, science, and history.” The group promotes awareness of and advocacy for meaningful and affordable death experiences for “your own death, the death of those you love, the pain of dying, the afterlife (or lack thereof), grief, corpses, bodily decomposition, or all of the above.” As a frontrunner in the international “Death Positive” movement, the Order encourages people to, at the very least, have conversations about death, including informing family and friends about end-of-life wishes. Looking back, I see that an hour-long conversation with my father-in-law could have saved so much of the pain I continue to endure because of his loss.

While I hope to work up the courage to wear my tee in public, perhaps in the meantime I can begin to wear it around the house when making my calendars and to-do lists. With my death planning mostly done, I want to get back to living.

Complete Article HERE!

Filing Tax Returns for the Deceased

By D.J. Wilson

Responsibilities exist

Losing a spouse or other family member or someone we are close to is never easy. Not only is the emotional aspect weighty, but there are responsibilities that come along with managing the decedent’s affairs. Organization and follow through are key elements when filing tax returns for the deceased. Together, they can help the process go smoothly.

Important to know

For those with taxable income prior to death, a final tax return must be filed. This is typically done by the spouse with whom they’ve previously filed jointly, or by a legally appointed representative of the deceased. In the case of a surviving spouse, they may continue to file jointly for two additional years if there are dependents and they have not remarried.

What the IRS requires

In most cases, the person responsible for filing the return, such as a surviving spouse, is likely named on the will. Whoever is filing the final return must report all income and financial information up to the time of the deceased person’s earthly departure. If there is no spouse, many times a child, trustee, close family member, or business partner is appointed as representative. Click here to learn more about filing tax returns for a deceased parent.

Is official notification of death required by the IRS?

Typically, the IRS generally does not require formal notification of death to accompany the return. However, on the final return, it must be clearly noted DECEASED, indicating that said person has died. The date of death must also be noted. Electronic returns will automatically state this information when properly programmed. In some rare instances, a formal death certificate may be required.

Decisions must be made

A major decision one faces is whether to prepare the final return oneself or use a tax professional. The tax filer is ultimately responsible for the accuracy of the tax return; thus, it is imperative that the final return is properly prepared. For complicated tax situations, or in the case where one is unfamiliar with taxes and/or does not feel comfortable preparing the return, the guidance of a tax professional is wise.

Why hire a CPA?

A Certified Public Accountant, or CPA, is an expert who is licensed to provide accounting services to the public. They are knowledgeable in tax preparation, internal auditing, and perform other valuable tax and financial services. Note that a CPA is an accountant, but not all accountants are CPAs. CPA is a special professional designation earned by qualified accountants. They must adhere to rules of ethics.

What type of information is needed to prepare a return?

Regardless of whether a tax return is done by an executor or by a professional accountant, the tax filer must gather information regarding the decedent’s tax situation to prepare a final return. The following information is generally useful:

  • A death certificate. Some financial institutions may require a copy before releasing information. CPAs may request a copy of the death certificate to confirm that someone is indeed deceased. In some rare instances, it may also be needed for the final return.
  • Proof as court appointed representative of the estate or deceased. This clarifies who is responsible for filing a tax return on behalf of the deceased.
  • Copies of previous tax returns. If the representative of the deceased does not have copies of the most recent tax returns, there are ways to obtain them. One may file a power of attorney to enable their CPA to obtain copies of previous returns. Alternatively, one may submit Form 4506-T to the IRS to request a transcript of the previous tax return. One must likely demonstrate representative or executor status.
  • A tax organizer. This is a document given to clients by their tax preparer to help individuals collect, organize, and submit information needed to prepare an accurate return. This helps to ensure that vital information is not overlooked. It also helps to confirm that all tax deductions and credits are noted. Paperwork that is generally important to collect and provide to your CPA may include 1099s, mortgage information, bank statements, investment statements, and more.
  • A copy of the will. This may outline other important financial information that may be useful for tax return preparation.

An important job

Filing tax returns for the deceased is a task not to be taken lightly. When a taxpayer passes away, a final return is still expected. This responsibility generally falls onto the surviving spouse or appointed representative. If the responsible party fails to file taxes for a deceased person, the IRS may take legal action, for example, by placing a federal lien against the Estate.

Complete Article HERE!

Have You Prepared Your Advocates?

— Estate planning includes naming advocates in your key health and estate documents. But are your advocates truly prepared to make decisions on your behalf? Our expert shows what you need to do.

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Going through the process of completing your estate planning documents is not an easy process. Working with an attorney to determine what documents you need, how you want the language written so that your assets are handled and decisions are made the way YOU want them, and choosing the best advocates to carry out those instructions can be very involved. No wonder it is a task that many people put off doing – it can be overwhelming!

Common Documents With Named Advocates

The most common estate planning documents that individuals have drafted (and that will require advocates to be named) are the following:



Most clients are so relieved when their documents have been drafted; it is a huge weight off their shoulders to have so many important decisions made and in place. It feels satisfying to have the binder of documents drafted by the attorney in hand and completed.

Perhaps if you are even more “on the ball,” you follow through and get copies of your documents to your financial advisor and update your asset titling and beneficiaries according to the funding instructions provided by the attorney. If you have done that, you are ahead of the majority of clients, most of whom take the big binder home and file it away in a safe place and consider their estate planning completed! But is it?

Have you taken the final step and communicated to those you have chosen as your advocates that you have named them in your documents?

The Importance of Communicating With Your Advocates

It is not uncommon for people to name others as future advocates for them in their legal documents, but not to communicate to them that they have been named. If you’ve ever been in the shoes of being that named advocate, and getting that “surprise” call that you suddenly need to make a life and death decision about someone’s health treatment when you had no idea you were named as their health care advocate and had not had conversations with them regarding their wishes around end of life treatment, you might think differently about having those proactive conversations.

It is extremely important to take this last step, and not only communicate with your advocates that they have been named in your documents but also give them the key information that they will need to fulfill your wishes.

Here is the key information you need to share:

Patient Advocate/Health Care Advocate:

  • Drug allergies
  • Current medications (or where to find your medications list)
  • Your primary providers, your wishes on Code Status (i.e. DNR or full Code), and where your estate planning documents are located
  • Your past surgical history
  • Whether or not there is metal anywhere on your body
  • What your wishes are for end-of-life care and treatments (i.e. aggressive vs. comfort treatment)
  • Plans for future care and any professional relationships and resources that can be used to assist the advocate in their role (social workers, Geriatric Care Managers, etc.)

Durable Power of Attorney/Successor Trustee:

  • Contact information for your professional advisors and, if possible, an introduction to those professionals.
  • Instructions on where to find an “open me first” document (ex. Personal Financial Record System) that details your financial life (bank accounts, investment accounts, insurance policies, government benefits, employer benefits, etc.)
  • Where to find your estate planning documents and a review of your Trust (especially for your successor Trustee, so they have a heads-up on how they might be managing your assets)
  • An overview/general conversation about your wishes regarding handling your assets for future care and your values around money.

Executor/Advocate:

  • Contact information for your professional advisors and, if possible, an introduction to those professionals.
  • Instructions on where to find an “open me first” document (ex. Personal Financial Record System) that details your financial life (bank accounts, investment accounts, insurance policies, government benefits, employer benefits, etc.)
  • Instructions on where to find your Letter of Last Instruction document outlining your wishes for after death.
  • Where to find your estate planning documents, especially your Last Will & Testament, which will be the guiding document for your Executor.
  • An overview/general conversation about your wishes regarding after-death arrangements, about your Will, and how you would like your assets handled post-death, especially if there is no Trust for assets to flow to.

The more information you can share with your future advocates, the better prepared they will be to make the decisions you would want them to make on your behalf should they ever need to serve. An advocate’s job is to be your fiduciary, which means to make decisions in your best interest; without the benefit of having full information on you and your situation, you make it almost impossible for them to do their job to the best of their ability.

If you have taken the time to draft your estate planning documents, our best advice is to complete the process by fully preparing your advocates to serve in your best interest – they’ll be glad you did!

Complete Article HERE!

I’m dead. Now what?

— Social Security information when a loved one dies

By Tom Margenau

Even though my wife and I are relatively fit, when you’re in your late 70s, you can’t help thinking about the inevitable. We’re all going to die. Even though my wife is a few years older than me, I figure I’m eventually going to be the first to buy that one-way ticket to the great beyond.

So, I’ve started working on a little something I will leave my wife when I’m gone. It’s a file called, “I’m dead. Now what?” In it will be all the information she will need to know to handle things like pensions, insurance, etc., after I’m gone. One of the sections will be about how to take care of Social Security matters.

I’ve written about this subject before. But if my emails are any indication, there is still confusion about this topic. So, here is what you need to know about Social Security matters if a loved one dies.

The first issue I will cover is what to do with the final Social Security check for the deceased. To do so, I must start out making two points. First, Social Security checks are paid one month behind. So, for example, the check you get in June is the benefit payment for May.

Second, Social Security benefits have never been prorated. This lack of proration can help out when someone first starts getting Social Security. Say you took benefits at age 66 and you turned 66 on June 28, you would get a check for the whole month of June even though you are only 66 for 3 days of the month. On the other hand, if your spouse dies on June 28, you would not be due the proceeds of that June Social Security check even though he or she was alive for 28 days of the month.

But there is a flip side to that perceived drawback to Social Security’s proration rules, and it could be good news for any survivors due benefits on the deceased’s Social Security account. Let’s say that Bill died on June 28. If his wife, Sarah, was due widow’s benefits, she would be paid those benefits for the whole month of June, even though she was a widow for only three days of the month.

So, when someone dies, the Social Security check for the month of death must be returned. But that’s only if you get the check in the first place.

There is a very good chance the check won’t even show up in the deceased’s bank account. As you may have heard, there are all kinds of computer-matching operations that go on between various government agencies and banks. So if the Treasury Department learns of a person’s death in time, they won’t even issue the Social Security benefit. Or, if the check was issued, the bank will likely intercept the payment and return it to the government before it even hits the deceased’s checking account. You usually don’t have to worry about returning any Social Security checks. It’s almost always done for you.

There can be a little twist to this scenario though. For example, let’s say that Henry died on July 2. Let’s further say that his Social Security check was normally sent to him on the third of each month. In other words, Henry died just before his Social Security check was deposited into his bank account. Because he was alive the whole month of June, that means he was due the money from that June check.

Now his widow or his estate is due that money. So that June Social Security benefit would have to be returned to the Social Security Administration. Then it will be reissued to the widow or to the estate. (There is a form that needs to be filled out to get that to happen.)

Now let’s talk about getting any Social Security survivor benefits that might be due. Unless they are due higher benefits on their own Social Security accounts, widow(er)s are due full benefits at their full retirement age, or reduced benefits as early as age 60 if they are not working. But the most common scenario involves couples who were both getting Social Security benefits at the time of death of one of the spouses.

Here’s an example: Fred died. He was getting Social Security retirement benefits. His wife, Wilma, was getting just a spousal benefit. In other words, she didn’t have enough work credits to get her own Social Security benefit. In this case, the process is simple. No widow’s application is required. Wilma simply notifies the SSA of Fred’s death and they just push a few buttons to switch her from wife’s benefits to widow’s benefits.

As part of the process, she may have to provide a copy of the death certificate. There is a chance the SSA will already have some proof of death in their files. Assuming Wilma was over “full retirement age,” she will just start getting whatever Fred was getting at the time of death. (But if he started his Social Security at age 62, Wilma would actually get a little more. Fred would have been getting a rate equal to 75% of his full benefit, and Wilma is guaranteed to get at least 82% of his full benefit.)

If Wilma was getting her own retirement benefit that was less than Fred’s rate, she will get bumped up to that higher amount. She would have to file an application to get those widow’s benefits. There is one twist. Widow’s claims cannot be filed online, so Wilma would have to contact the SSA at 800-772-1213 to file her claim over the phone. In addition to a death certificate, Wilma may also have to provide a copy of her marriage certificate.

There is also the matter of the $255 death benefit. I’m always embarrassed talking about this one-time payment because it is so miserly. There is a long history to this, and I don’t have the space to explain it here. Suffice it to say, the rate has been set at the $255 level for 50 years now.

A half-century ago, it might have gone a long way toward paying for a funeral. Today, it barely covers the cost of the flowers draping the casket. But, the benefit is still there. However, a number of years ago, Congress passed a law saying it can only be paid to a widow or widower who was living with the deceased. So, if someone dies, and there is no spouse, the $255 death benefit cannot be paid.

Complete Article HERE!

Less Than Half of U.S. Adults Have Wills or Advance Healthcare Directives

By Laurnie Wilson

Death or medical emergencies are never topics that are easy to address. However, a last will or testament can make a difference in the way that one experiences aging, as well as how families grieve in the aftermath of a deceased loved one. Gallup findings from 2021 show that less than half of U.S. adults had a will at the time. Where do Americans stand today on last wills, as well as living wills and advance healthcare directives?

Around 4-in-10 Have Last Wills, More Are Planning On It

New CivicScience data show that the percentage of U.S. adults with wills is still less than half – 38% of Americans currently have a last will and testament detailing property and asset rights after death. However, half of respondents plan to create one in their lifetimes, and 22% plan to make one in the next 12 months. If that were to happen, over 50% of Americans would then have a will by this time next year.

As it turns out, last wills are most common among:

  • Adults aged 65+: 61% have a will, compared to 46% of those aged 55-64; 35% of those aged 35-54; and 22% of those aged 18-34.
  • Homeowners: 49% have a will, compared to 23% of renters.
  • High-income earners: the higher the annual household income, the more likely someone is to have a will.

Age 65 and up appears to be when most Americans are likely to create a will for their financial assets. Less than half of adults under age 65 currently have a will, but between 20-25% plan on creating one in the next 12 months. To no one’s surprise, adults aged 18-34 are the most likely to not plan on making a will (16%), although 62% foresee creating one at some point in the future.

Additionally, attorneys are the most popular option when it comes to the process of preparing a will. More than half of U.S. adults said they used an attorney to prepare their will, while 17% used an online site such as LegalZoom or Free Will, and 34% either wrote their own will or used other means (n=2,202). However, adults aged 34 and younger showed a high rate of using online sites (28%) compared to an attorney (36%). Legal document preparation websites and digital services are likely to become increasingly popular over the traditional use of an attorney as the U.S. population grows older.

Living Wills Are Alive and Well

A living will allows individuals to state their healthcare preferences in the case that they are unable to communicate them at a future date. More than a third of Americans report having this type of advance medical directive (34%), slightly lower than the percentage of those with last wills. Over a quarter (26%) say they plan on creating a living will in the near future.

The data suggest that knowledge of this type of advance medical directive is surprisingly high, as just 7% of adults say they are unfamiliar with a living will and 47% are planning to create one at some point in life. Adults aged 65+ are once again the most likely to already possess a living will, but adults across the board demonstrate a high interest in creating one, including 52% of adults aged 18-34.

Interestingly, 24% of Americans have either a designated financial or healthcare power of attorney, and an additional 20% say they have both (n=3,927).

Americans Are Planning for Their Futures

Of course, legal documents aren’t the only aids Americans may turn to in order to ease the burden of their passing. For some, life insurance answers the question of how to ensure your family is prepared in the event of your death.

As of 2023, 57% of U.S. adults say they have a life insurance policy, the same percentage as in 2022. And as the data show, those who have life insurance are highly likely to have a last will or to be planning to create one if they haven’t already. That said, a significant portion of people without a life insurance policy and not intending to secure one currently have a last will (49%), but they are also the least interested in creating one in the future.

Finally, data show those who have a will or plan to create one are more optimistic about the future than those who never plan to create one. So while some may view end-of-life preparation as a sign of pessimism, perhaps sentiments are changing, as many Americans plan to take steps for the future.

Complete Article HERE!

Finances After The Death of a Spouse

– Creating a “Just In Case” Checklist

By Kyle Prevost

Preparing for the death of a spouse has got to be one of the worst personal finance tasks out there.

I think it might be slightly easier for us to prepare for our own demise than it is to place that burden on our spouse. That statement is especially true if your household division of labour is “the norm”, in that one spouse generally defaults to handling most of the financial planning and paperwork.

As I’ve been writing more and more about retirement lately, the idea of a “just in case” file or a “just in case” checklist has come up more and more. I’m not just talking about complicated tax issues to consider when a spouse passes away, or complex estate maneuvers. I’m more referring to how to handle the basic nuts and bolts of day-to-day life.

And remember, if you’ve decided that one spouse is going to be chiefly responsible for the finances, that individual does not have to pass away for a very bad scenario to occur. Cognitive decline is an unpleasant reality for many of us, and there is no obvious way to tell that someone has reached the point where they are decisively not able to handle the household finances any longer.

Planning sooner rather than later for that day is a responsible way to handle an unpleasant situation.

Financial Planning for Death

While financially planning for the death of a spouse – or your own trip to that great tax haven in the sky – is one of the least fun afternoons that I can contemplate, it is quite likely to head off some truly awful scenarios down the road.

Before preparing a “what to do when a spouse dies checklist” like the one below, let’s just get this important step out of the way first and foremost: You really do need to get that Will, Advanced Care Plan (often called a “living will” thanks to US media), and Power of Attorney set up if you haven’t already.

Yes, it’s boring – but it doesn’t have to be time consuming and expensive. I wrote about my personal experience creating a will a few years ago. It cost me $32 and took about an hour.

Also, consider taking an additional half hour to designate the recipient of non-financially valuable possessions that may not have made it into your will. I know several family squabbles that were caused by a combination of grief and irritating disputes over family heirlooms or relatively small possessions that seem much more important after someone has passed away.

What to Put In My “In Case I Die” Checklist

1) A “How To” for Notifying Service Canada of Your Death

Your OAS benefits stop when you do. Your CPP benefits on the other hand are a bit more complicated. You can read our Ultimate CPP Guide for more benefits information, but the most pressing issue will be collecting the death benefit that is part of the program.

2) Transferring Registered Accounts to Surviving Spouse

Ideally you have read our What Happens to Your TFSA and RRSP After You Die article and have identified the beneficiary and successor holder on your accounts. Those accounts will now have to be transferred to your name solely.

3) Removing Name From Shared Accounts and Utility Bills

When someone passes and is survived by their spouse, their name needs to be taken off of shared accounts, as well as utility bills, etc. A list of these accounts will come in really handy.

Settling and Cancelling Credit Cards

If you are always the one that paid the credit card, directions on how to do that, and then cancelling the credit card (or removing one name from the account) are essential.

5) A visual Step-by-Step Cecumulation Plan if You’re Still Managing Your Own Assets – or Revisiting The Idea of an Annuity/Robo advisor.

Robb Engen over at Boomer and Echo was the one who alerted me to the issue of one spouse often being the household “Chief Financial Officer” – and then passing away – leaving a huge burden of responsibility on the remaining spouse when it comes to maintaining the household decumulation plan.

Robb is a big fan of shifting over your assets to a robo advisor sooner rather than later, as they can assist a surviving spouse with basic retirement income mechanics such as selling investments and moving money to a chequing account. They’re also a great option for automating a RRIF drawdown for example.

I think as one gets older and knows their days of handling complicated decumulation strategies are starting to recede into the rearview mirror, the idea of revisiting the idea of annuities really makes a lot of sense.

Regardless of what path you choose, some combination of current-day learning, easy-to-understand graphic organizers showing a step-by-step process, and very specific directions as to what to do with investments, should really be a priority.

Remember, this stuff can be like a very intimidating new language for non-financially savvy folks. We’re looking at a situation where a spouse will have to learn that new language as they grieve and take care of 101 other things. Making things as easy as possible will be much appreciated.

6) A Passwords List

This can likely be combined with the “important stuff binder” below. A non-hackable physical document that either provides simple hints to passwords, or partial passwords, should be written out and stored in an ultrasafe location such as a safety deposit box.

Just think about all the passwords your digital footprint likely includes these days. Take a half hour and make this simple.

7) Navigating Probate and Life Insurance

As part of your will you should think about how the sequence of events will occur once you pass away. Our life insurance for seniors in Canada guide will explain both why you shouldn’t get talked into insurance that you don’t need, as well as what happens to a life insurance payment when you pass. Make sure all of the relevant contact details and the processes involved are easy to find.

8) A Physical Binder of “Important Stuff” For a Safety Deposit Box

In this day and age of online storage you might prefer to make copies of important documents and store them in a super safe online storage solution. But personally, the vast majority of folks that I know are still reassured by the idea of a physical copy of something in a safety deposit box.

Upon your death or the death of a spouse having important documents like birth certificates, marriage licenses, lists of accounts and/or loans, property deeds, pension information, contact details of professionals that you depended on such as accountants or advisers, etc – easily accessible will greatly reduce stress during an inevitable stressful time.

You can also put copies of keys in this binder as well if you really want to make life simple.

Consider leaving a copy of that binder with the trusted individual who will be the executor of your will.

Conclusion – How to Plan for the Death of a Spouse or Loved One

From my limited experience, there is no real way to prepare for the emotional trauma of losing a loved one. That said, there is no need to compound that grief by failing to prepare financially for the death of a spouse or your own demise.

Getting your affairs in order sooner rather than later can mean saving untold heartaches and headaches down the road, so I really do think it’s worth taking the time to do it right.

Complete Article HERE!