In the second blog post of our four-part series, new year, new you, we’re going to explore a variety of tasks that will help get our financial house and life planning in order. As we traverse the intricate journey of midlife, it becomes increasingly apparent that the choices we make today profoundly impact our future. This pivotal stage brings with it a myriad of responsibilities, including managing finances, securing our legacy, and ensuring our loved ones are taken care of. In the midst of career strides, family obligations, and personal aspirations, it's easy to overlook the crucial task of getting our financial house in order and embarking on comprehensive life and estate planning.

This is a unique time for midlifers whose parents are still alive, because not only do we need to ensure we implement these vital measures for ourselves, we may also be in the role of overseeing the life planning wishes and estates of our parents. We’re at the “sandwich phase” of life where we become advisors, advocates and caretakers for our parents, while also putting our own affairs in order, alongside raising children and perhaps even grandchildren.

Let me preface this by stating that the inspiration for this blog came from a viral post I saw on Facebook that outlined all of the things we should be doing to get our affairs in order. The following ‘to-do’s’ are directly from this post (this is when social media can be a good thing!). I don’t know where it originated from, so I can’t give proper credit, but I’m sure you’ll be as thankful as I was having this vitally important information fed to me. I appreciate the person who composed these details and then felt compelled to share them on social media. I believe sharing is caring, which is why I’m writing this post.

If you’re like me, you may find this process daunting, but it’s extremely important that we do this for ourselves, our loved ones, and our children. Here goes:

1. Make sure all bank accounts have direct beneficiaries. The beneficiary need only go to the bank with your death certificate and an ID of their own.

2. Complete a TOD (Transfer On Death deed). If you own a home, completing this document and filing it with your county saves your heirs thousands of dollars. This document allows you to transfer ownership of your home to your designee. All they need to do is take their ID and your death certificate to the county building and the deed is signed over. Doing this will avoid the home having to go through probate.

3. Craft a living will. This allows you to put in writing exactly what you want done in the event you cannot speak for yourself when it comes to healthcare decisions as well as other final decisions.

4. Establish a Durable Power of Attorney. This gives you the power to designate a person to make legal decisions if you are no longer competent to do so.

5. Get a Power of Attorney for Healthcare. This document lets you designate someone to make healthcare decisions for you.

6. Draw up a Last Will and Testament. This designates to whom your personal belongings and assets will go to.

7. Implement a Funeral Planning Declaration. When you do this you ensure your wishes are met in terms of disposition of your body and any services.

If the above documents are completed, you can avoid probate all together. If these steps aren’t taken you have to open an estate account at the bank. The money that doesn’t have direct beneficiaries goes into this account and you will have to retain and attorney to open the estate account. The attorney will also be required to publicize your passing in the newspaper or post publication at the county courthouse to allow anyone to a claim on your property. This can be a huge pain in the you-know-what.

Other things you can do to unlock the doors to financial security, peace of mind, and the fulfillment of your long-cherished dreams include:

1. Make a list of all banks and account numbers, investment institutions with account numbers, lists of credit cards, utility accounts, and leave clear instructions as to how and when these things are paid.

2. Make sure your heirs know where life insurance policies are located.

3. Make sure someone knows your Apple ID and bank ID account logins and passwords.

4. Have titles for all vehicles or other motorized transport modes that require a title in a safe place, but where your heirs and/or power of attorney can easily access.

5. Set up a trust for intended beneficiaries, especially those that are too young, and appoint a trustee of said trust.

Most importantly, have serious conversations with your loved ones and make all of your wishes known. Talk to the folks you’ve designated responsibility to and to those close to you that won’t bear any responsibility to ensure they understand, respect and will fulfill your wishes. Share the “why” for your decisions to avoid any lingering questions or hurt feelings.

Embarking on the journey to get your financial house in order and engage in life and estate planning might seem overwhelming, but rest assured, you're not alone. I hope this blog post breaks things down in layman’s terms and is digestible so that your feelings of overwhelm and anxiety remain at bay.

XoXo

~Maya