Planning for the end of life is a kindness to the people who will handle things after you. It does not have to be done in a day. Work through this list a step at a time and keep the results in one place.
1. Write down your wishes
Burial or cremation, the kind of service, a preferred funeral home or cemetery, music or readings. A single page is enough. Families often disagree simply because nobody knew what the person wanted.
2. Get local prices
Ask two or three funeral homes for their General Price List. They are required to provide one under the FTC’s Funeral Rule. Real local prices are a better guide than national averages.
3. Decide how the costs will be paid
Savings, an existing life insurance policy, a final expense policy, a pre-need plan, or a mix. Write down which accounts or policies are meant for this purpose.
4. Check your beneficiaries
Look at every life insurance policy, retirement account and bank account with a beneficiary or payable-on-death designation. These designations usually override a will, so an out-of-date name can send money to the wrong person.
5. Make or update your will
A will names who receives your property and who is in charge of settling your affairs. An attorney in your state can tell you what is required for it to be valid.
6. Name people to act for you
A durable power of attorney for finances and an advance directive for health care let someone you trust make decisions if you cannot. The forms and rules differ by state.
7. List your accounts and bills
- Bank, retirement and investment accounts
- Insurance policies, with company names and policy numbers
- Regular bills and automatic payments
- Loans and credit cards
- Online accounts that will need to be closed
8. Gather key documents
Birth certificate, marriage certificate, military discharge papers (DD-214), Social Security card, property deeds and vehicle titles. Veterans’ families will need the discharge papers to claim burial benefits.
9. Tell someone where everything is
A perfect plan locked in a drawer nobody knows about does not help. Tell at least one trusted person where the folder is, and review it every year or two.
If insurance is part of your plan and you would like to understand the options, our guide to final expense insurance is a good next step.
This article is general information, not legal, tax or financial advice. Policy features, eligibility and prices depend on the insurance carrier, your state and your personal details.
