Can You Protect Your Family from the Impact of a Sudden Death?

Family finances can take a huge hit from the unexpected death of the main breadwinner. Advance planning, even when death seems like a remote possibility, can help.

Several national conversations were launched when two bold-name celebrities— Kate Spade and Anthony Bourdain—took their lives. One was about suicide, the other about what happens to families in the face of an unexpected death, from a financial and estate planning perspective.

CNBC’s article, “Sudden deaths like those of Kate Spade and Anthony Bourdain can devastate family finances,” explains that a number of the leading causes of death in the US are events that happen without warning. These are things like heart disease, accidents, stroke, and suicide, which are among the leading causes of death across the country, according to data from the Centers for Disease Control and Prevention.

An unexpected death has a tremendous impact on a family—mentally, emotionally and physically. In addition, it can also affect family finances, depending on the amount of planning the deceased had in place. Think about the following items following the unexpected death of someone you know:

1. Get organized. You should secure all of the deceased’s financial and legal documents, along with his or her keys, wallet, and phone. Next, find the will, if there is one. If an executor or personal representative is named, make sure he or she takes on their responsibility to lead going forward. If you are the personal representative of the estate, you should change locks on their residence, cancel or rearrange home deliveries, coordinate the care of any pets, have their mail forwarded to the authorized person, and arrange for the care or disposal of perishable food items.  There are many other issues that you will need to discuss with an experienced attorney to help you complete your fiduciary duties as the personal representative of the estate.
2. Look to your own mental and financial health. It’s critical to get the support and help that you need, as you grieve. The death of a loved once can take time to properly process and understand how it will affect your future life.
3. Delay major financial decisions for at least a year. Some folks want to make big life changes right away, but experts say to wait. You're grieving and may not be thinking clearly. You may make a decision that you will regret later. If you do need to make a significant financial decision, talk with an attorney first.

Everyone should create their own estate plan, no only to help your loved ones or persona representative avoid the headaches of probate, but also to achieve peace of mind know that can come from having an estate plan in writing.  Work with an attorney to draft the basic estate planning documents, like a will, power of attorney, and health care power of attorney.  Many estate administration problems and headaches can be avoided through the implementation of a living trust.

When you work with an experienced estate planning attorney to draw up these documents, be sure to communicate both the name of your attorney who drafted the documents and your wishes to your loved ones.

To make sure that your plan continues to stay up to date, review estate planning documents on a regular basis—your estate planning attorney will be able to tell you if you need any minor adjustments, or if larger revisions are necessary. Changes in the law often necessitate a review. The same goes for any major life event, like marriage, separation, divorce, birth, death, adoption, etc.   Contact the Soto Law Firm today to schedule a free consultation with an attorney to discuss how an estate plan can help you and your family achieve the peace of mind you seek.

Reference: CNBC (June 8, 2018) “Sudden deaths like those of Kate Spade and Anthony Bourdain can devastate family finances”