Don't Leave Your Family In the Dark

As a lawyer, I have heard the story too many times:  One spouse takes on the responsibility of managing the money, paying the bills, and doing all the things necessary to ensure the financial safety of the family.  The other spouse takes on equal responsibility for all things other than finances.  This balance in sharing responsibility works great and makes everything happen smoothly.  Then, whether expected or unexpected, one spouse passes away – leaving the surviving spouse to take care of EVERYTHING.

Often times when the surviving spouse is the one who never handled the finances, he or she must piece together the legal and financial “puzzle”.  This may be the classic “searching for a needle in the haystack” scenario.  The surviving spouse is suddenly thrown in to the role of dealing with the finances.  This may include searching for bank accounts, discovering if any life insurance exists, collecting any pension benefits, determining whether there is a will or living trust, and paying all bills.  Depending on which spouse’s name is on an account, a probate court order may be required to transfer the account into the survivor’s name.  This may also be true with respect to other assets.  

So, what can you do to make sure you don’t leave your family in the dark?  Consider taking some of the following steps:

• Prepare a will or living trust.  Make sure your spouse or next of kin knows where to locate the original.
• Consider leaving an instructional letter, detailing what needs to be done if something happens to you.  Write the letter with the mindset that the person reading it may be grieving and needs as much detail as possible.  Be over inclusive.  This letter should include some of the following information:
• A list of all bank accounts owned by you or your spouse.  This includes information related to where the account is held, the account number, and the approximate amount.  Update this list as needed, but make sure that you review this list at least once per year to ensure it is current.
• A list of all life insurance policies owned by you (including any life insurance provided through your employer).  Make sure you list the company, policy number, amount, and named beneficiary.
• Details of any pension benefits to which your spouse or survivors may be entitled.  This should include the name and contact information of the benefit provider and the amount of the benefit.

We all hope that we live long, healthy lives.  Whether you live a long life or not, by taking some of the steps outlined above, you can ensure that your family will not be left in the dark in the event something happens to you.

For additional information, please feel free to contact me through my website at www.willsandtrustslaw.com or directly at (949) 261-5777.

The information provided in this article is for general informational purposes and is not intended to be legal advice.   The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance.  Each situation is different and requires particularized legal advice.  It is strongly recommended that you consult an attorney for individual advice regarding your specific situation.