The hustle and bustle of the holiday season is here, bringing with it many cherished traditions: decorating the Christmas tree, gathering for parties with friends and family, searching for the “perfect” gift, and setting goals for the coming year. One of my most important traditions began about 10 years ago after receiving the dreaded call that my dad was in the hospital unexpectedly. His cancer diagnosis changed his life and our family’s. That experience shifted my outlook on preparing for the “what if” scenarios in life. So every December, I take some time to review my preparations for life-changing events and discuss them with my family.
What if you were to become disabled due to a serious illness, an accident, or advanced aging? What if you were to die suddenly due to a tragic accident or aggressive disease? Imagine having your spouse, child, or employee step into your shoes tomorrow and pick up where you left off. Will they be successful? Do they know all the things you do regularly? This is the perfect time to plan to minimize the emotional burden and financial impact on your family and business when something happens. Discussing your plans with your family is crucial. While it might be uncomfortable or difficult, having these conversations ensures that everyone understands your wishes and knows what to expect. It can also prevent misunderstandings and conflicts among family members. I’m thankful that I was able to have those discussions with my parents before their passing. It reduced the stress and anxiety for our family especially when making healthcare decisions.
There are several resources available for life-changing events and end of life planning. I recommend consulting with financial, insurance, and estate planning experts, as well as having a relationship with a trusted lawyer. Here are some major tasks that are part of the preparations:
Create a will and naming an executor of the estate to oversee the terms of the will
Set up a power of attorney (POA)
Establish a guardian for living dependents
Create or update beneficiaries on plans such as life insurance and financial accounts
Create a living will and name a medical power of attorney
Discuss end-of-life plans with loved ones
Make funeral arrangements or communicate your wishes to loved ones
Generating a master document or folder for loved ones that serves as a road map for locating personal and financial information is critical. I call mine the ICE (In Case of Emergency) folder and share the location with loved ones. Here are some components of the ICE folder:
Date of birth and social security number
Contact information for family, friends, employer, and lawyer
List of user IDs and passwords including the cell phone password
List of bank accounts, insurance policies, and investment
List of owed and borrowed debts
Copy and location of important documents such as the will, health care proxy, birth certificate, marriage certificate, property deed, and financial statements
List of email and social media accounts
List of monthly bills with typical charges, due dates, and payment type (electronically or check)
Business information and key contact information
Instructions for pet care/custody and veterinary contact information
Letters to loved ones to be shared at the appropriate time
It’s important to review and update documents and the ICE folder at least yearly or anytime there is a major life change.
Planning for life-changing events and ultimately death can be uncomfortable and even scary. However, it is one of the most selfless things we can do for those we care about. These preparations are not only pragmatic acts but gifts to those we love. Don’t procrastinate, start planning today. Just taking 5 minutes out of your day over the next couple of weeks can have a tremendous impact.
— Heather Dann