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Plan (Far) Ahead to Protect Loved Ones
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Over the course of your life, you’ll need to take steps to protect the financial well being of your loved ones after you’ve passed away. But when should you make these moves?
Generally speaking, you should act as early as possible. Consider your life insurance. Even if you’re young and single, you might need to purchase enough insurance to ensure your outstanding debts are covered. Of course, if you’re married with a family, you will unquestionably need enough insurance to pay off a mortgage, fund your children’s education and help your surviving spouse meet his or her daily living expenses.
Also, as long as you have loved ones and financial assets, it’s never too soon to create a Will and name an executor. You can always revise your Will to reflect changes in your life, such as new children and remarriage.
And it’s a good idea to get an early start on your other important legal documents, such as a trust, which can enable your estate to avoid probate, and a living will (sometimes referred to as a Power of Attorney for Personal Care), which provides instructions regarding your medical care if you were to become incapacitated.
Here’s one more suggestion: Consider pre-paying for your funeral arrangements. By doing so, you’ll avoid future price increases associated with burial or cremation. Just as importantly, you’ll spare your grieving loved ones the necessity of taking out loans, or reducing savings and investment accounts in a desperate rush to pay for your funeral.
None of us can predict the future, so it’s important to do whatever you can, as soon as you can, to protect your loved ones. They deserve your best efforts.