Preparing for the End

I often talk about this subject in my financial literacy sessions. What does one need to do from a financial angle to prepare for the ultimate truth – your exit from the world?

I give below a few pointers and questions.

1. Study the succession laws in your country in detail.
2. Write a will. It can be changed any number of times.
3. Keep a record of all financial details – bank accounts, insurance policies, stock market investments, location of metal, cash or other valuable possessions. Let someone know where to look for it.
4. If you have a financial advisor or chartered accountant helping you, share his or her contact details with your family. They will be able to proceed ahead with the advisor’s help.
5. As age advances, it makes sense to liquidate belongings and convert those to cash or stocks. Allocation and distribution will be a smoother process, than in the case of real estate and other material stuff. It also helps in making a more equitable distribution.

A question I often ask is “What happens if you are in a coma, and your family needs funds for your medical expenses? How will they access your funds?”

Since you are still alive, the will and succession plan is not effective as yet.

The common responses I receive is that people are willing to trust their spouse, but not the children with passwords etc.

Answers will differ for each of you. I’ll leave you to think about this question.

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Friday Faithfuls

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