Legacy Binder: Don't Leave Family Behind with Questions
The Legacy Binder protects your survivors, especially young kids, in case something untoward happens to you. • Give your family and loved ones peace of mind• No stressful shuffling through drawers and file cabinets• Leave one last loving gift: precious memories , thoughts, and final wishes • BONUS: Save 20% off now with coupon code CHOOSEFI
In April of 2017, my family received devastating news when my mother-in-law called us one day from Florida. Through tears and sharp, sad breathing, she told us that the sudden onset asthma symptoms she’d been coping with during the previous six months were actually the signs of terminal, stage 4 lung cancer. Her prognosis was finite; she only had months remaining to live, and with that news, we were instantly stripped of any hope for a cure.
When the cancer diagnosis came, we felt suspended in a distant and lonely state of shock. But Nancy, my mother-in-law, went straight into action. “I need to get my things in order”, she said, and over the next week or two, she repeated this mantra when we’d call for updates and next steps. When she resurfaced, she told us that she held a small life insurance policy. Her children were beneficiaries. She made copies of the policy number and a proof of insurance letter and gave them to both sons to hold.
At that moment, we didn’t care about the insurance papers nor the money for the grandchildren that she spoke of–we were still in pain over the diagnosis. We were unable to think ahead to the financial impact of her death because the immediate thought of losing her was so much to bear. As a nurse, I have cared for many patients as they passed through the final stages of death. I accept that dying is inevitable. However, in the past few months, I have learned that losing a loved one “before their time” is jarring, depressing, and heartbreaking.
She lost her short battle with cancer eight months later, on December 12th, 2017. Writing about dying feels morose since we are still actively mourning her loss. Still, I think it’s important to push through those feelings and share my thoughts- hopefully, helping others take action on end-of-life planning. The following is what we have in place as it relates to our assets and family. We have worked to make sure that if anything happens to either of us, as parents, the other won’t need to worry about finances when staring in the face of shock and possibly depression.
Related: Why You Need A Legacy Binder
Action Steps We’ve Taken
What can you do today to protect your family in case you leave them unexpectedly? What should your significant other do to protect you and your children? Here are a few things I have done to ease the burden of a loss for my family.
1. I have a notarized Will and Testament in a safe place and let the family know where it is. I have a benefit through work called prepaid legal services. Many government employers and companies have this service. Through this program, I was able to have a will drawn up by a lawyer. I had a home, investments, a car, and savings at the time. I included instructions about these items. For instance, if your life insurance beneficiaries are minors, you may want to keep the assets protected until they reach a certain age. You can specify these instructions through the will.
Make sure to update the will when there are changes in your situation. Since my will was drafted three years ago, I have started a profitable business. At some point, I will need to add this asset to the will.
2. We have term life insurance in place until the kids reach a certain age. How much insurance do you need to buy, and for how long? You should call an insurance agent for more direction, but the standard answer is 20-25 times your annual salary plus debt obligations. So, If you make $25,000 a year, you would need a policy of $625,000 in insurance. It would replace your household contribution for the next 25 years, which would be nice if your children are very young.
3. Beneficiaries are listed on all of my accounts. Retirement, pension, savings accounts, insurances, and anything else with a beneficiary line have one listed. I add the values up to make sure that each person is getting the share of my assets that I would like them to have.
4. I have a safe and a paper file box that includes all copies of my documents. My parents, sister, husband, and children know my financial wishes. My husband and parents know my medical wishes, and my will lists my healthcare proxy. It would be a good idea to revisit my healthcare desires and ensure my healthcare power of attorney is up to date.
5. I keep my birth certificate, social security card, and other state documents in a clearly labeled file.
Protecting Our Loved Ones
When you leave this world, your loved ones will feel like it is too much to bear. And yet, all around them, time and life will continue on. I know that if I passed away tomorrow, my children and husband would be cloudy-minded and devastated. Knowing that their lives continue on as easily as possible in my absence is my lasting wish–and these documents are the best way to ensure that outcome.
What documents do you have in place? What should I add to my list?
