Financial planning now can significantly ease burdens later if tragedy strikes.

When Jerry took his life, it shocked everyone, particularly his wife, Jamie Ballinger. She recalls, “My priority shifted to basic needs like food and shelter before I could even think about my emotional state.” Jamie faced immediate responsibilities, including caring for her 7-year-old son and organizing a funeral. Only after the house was cleared of guests could she begin to confront her grief.

Once she started sorting through the aftermath, she realized how many financial questions were left unanswered. For instance, was there any life insurance? To her surprise, there wasn't. Where were the passwords for social media accounts? Unfortunately, they weren't compiled anywhere. Months later, some issues remained unresolved, like accessing Jerry's Twitter account.

While Jamie's experience is heartbreaking, it's not uncommon. Many shy away from discussions about mortality. I used her situation as motivation to take action — perhaps it will inspire you too.

Address Difficult Topics

“There was no reason Jerry and I avoided these discussions,” Jamie reflects. “We just never did.” Starting these conversations can be challenging, but it’s crucial to engage. According to psychotherapist Matt Lundquist, LCSW, MSEd, establishing an environment in your relationship where tough topics are openly discussed is essential. “Healthy relationships require conversations about crucial issues such as sex, death, and finances,” he explains.

Organize Important Documents

Many of us have critical documents scattered throughout our homes, and the number of online account logins can be overwhelming. One helpful tool is the workbook titled “I’m Dead, Now What?”, which prompts you to answer vital questions that can guide your loved ones in times of crisis. For instance, who should be contacted upon your passing? Where are your important documents stored?

It might seem tedious, but this task pays off. “Maintaining it is much simpler once it’s completed,” says CFP Lena Wyand. “You owe it to those you love.”

Consider Life Insurance

If Jerry had carried life insurance, it could have alleviated some challenges for Jamie after his unexpected passing. At the time, she was a full-time PhD student, with a stipend barely covering her mortgage. “Without my in-laws' help, I would’ve struggled,” she shares.

“I always advise clients to secure life insurance, especially if they have kids,” says Wyand. Many mistakenly believe that stay-at-home parents don’t need it, but it ensures that the surviving partner can take time off to grieve. Nowadays, obtaining life insurance is straightforward, and term life, which is usually more affordable than permanent options, is often recommended. Decide how long you want coverage — until your child graduates, for retirement, or for the next 30 years. Use online calculators or consult a financial advisor to assess your needs.

If you have insurance through your employer, verify that it provides sufficient coverage. Often, these policies only cover immediate expenses, like funeral costs. “Supplemental life insurance is a way to show your partner you care,” Jamie advises. “Mine is ten times my salary, giving me peace of mind for my son.”

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Gather Estate Documents

Like many, Jamie hadn’t organized her important documents until after Jerry's death. Now, she maintains what she calls “The Red Folder,” a physical space where crucial information is kept. Her close friends know its location in case of emergencies. This folder includes Social Security cards, birth, marriage, and death certificates, immunization records, and insurance policies — all things she wished she had on hand during the crisis.

Ensure you and your partner know where important documents are stored. If you lack a will, create one, and update it every three years. Durable power of attorney for healthcare and finances is also essential to designate someone to make decisions on your behalf if needed. Plus, confirm that you’ve named beneficiaries on retirement accounts.

Manage Digital Assets

Deleting social media accounts after someone passes can be challenging, as Jamie discovered with Jerry's Twitter account. She faced numerous obstacles and eventually abandoned her efforts. Facebook allows for account deletion settings that must be chosen while still alive. Jamie also lacked access to Jerry’s logins and passwords, complicating matters further. “Explaining everything to service providers while grieving is a heavy burden,” she remarks.

Wyand recommends using an app like LastPass or 1Password to store all your passwords securely. You’ll only need one master password to access your accounts. If possible, add both names to household utility accounts to avoid complications in case of a partner's death.

Joint Bank Accounts

While it's common for couples to maintain separate bank accounts, having a shared account for bills is wise. Both partners should understand financial management. Losing a loved one is hard enough without the added stress of missed payments. Knowing all account details and passwords for your checking, savings, and credit accounts, including individual ones, is crucial.

Jamie managed the family finances but wasn’t listed as a beneficiary on several of Jerry’s retirement accounts. “Even years later, I still receive mail about jobs he held briefly,” she notes. “It’s a lengthy process to sort through.”

The key takeaway is that open communication and proactive planning can significantly ease the burden on those you leave behind.