When Tragedy Strikes Will You Be Prepared?

Something happened recently that will stay with my husband and me forever. 

My husband looked out the window to see our neighbor had collapsed on his lawn and his wife was administering CPR.  I immediately grabbed the phone and called 911 as we both ran out the door to help.  My husband took over the chest compressions until medical help arrived.  The paramedics were able to get him breathing again but he ultimately passed away at the hospital.

I have been thinking over the last few days about the number of spouses or partners who don’t know what is going on in their financial lives because the other partner handles their finances.   I don’t know if that is the case with my neighbor.  I certainly don’t know them well enough to ask about their finances…especially at a time like this.   I do desperately hope that they had their financial matters in order though.

This has been weighing on my mind because we ran into this exact scenario with a family friend several years ago.  He and his wife were well positioned financially.  He passed away suddenly and his wife had absolutely no clue about their finances.  She didn’t know where their bank accounts were.  She didn’t know anything at all about how they were insured. She didn’t handle any part of their finances and had no idea where to start.  Not only was she grieving the loss of her husband, she was in a panic not knowing if she would be ok financially.   Dave ultimately met with her several times to unpack their finances and help her learn how to manage things for herself.

This kind of situation happens more than you would imagine. 

If this is you, I ask you, no, I BEG you to make this a priority!

If you are uncertain about the how/what/where and when of your finances, or you believe your spouse/partner may not know, you need to act NOW!

1. Make a list of your financial accounts, including account numbers and balances.
2. List all insurance policies with account numbers and expiration dates
3. List all debts including credit cards, auto loans, mortgages, etc.
4. If you have a safe deposit box, note where the box is located and where the key can be found.
5. Where is your Will? Let your partner know.
6. What are your passwords?  There are great password protection programs if you are concerned with having them written down somewhere at home. Also keep in mind that if you are logging in from a different device (your laptop instead of your partner’s) do you have access to the email address or cell number associated with that account so you can authenticate access?
7. Where are your social security cards, your marriage license, leases and automobile titles?
8. Let your significant other know where you keep your tax returns.
9. Do you have a budget? Let your partner know where to find it so he or she knows what is paid out every month. Include information about automatic payments.

There are probably a lot of other instructions you can give in case you are incapacitated or worse.  Think it through and write it all out.  No detail is too insignificant to someone grasping at straws.  It may seem obvious to you but I assure you, it might not be obvious to your loved one.

Don’t wait!  This might be the best gift that you and your partner can give each other!

When handling your money, make sure that your way is the right way.