Project Description
After a divorce, separation or being widowed, we are often left alone to manage things on our own and it can be an overwhelming time and task for many.
In a divorce, or separation, there can be significant financial homework that is created. With the help of good legal advice, you will probably be listing all your joint assets and debts, bank records, and savings /investment and pension statements. You’ll also need your will, tax returns, credit card records, mortgage papers and insurance policies. You will need to update your will, and possibly change beneficiary designations as well as with other important documents. Your legal council should direct you to all that is necessary.
A widowed individual can go through a terribly devastating and heartbreaking time. Unfortunately, making matters more complicated, the death of a spouse opens up a stream of financial tasks as well that may be unfamiliar to them. Areas such as investing, insurance policies, taxes or estate planning are either a shared responsibility or sometimes wholly managed by the deceased spouse, leaving behind a batch of financial matters to tend to. Among the many things, the widowed individual must do is find all the assets and financial planning related to them, collect insurance, apply for benefits, change titles on joint assets, update wills and trusts and powers of attorney, manage probate taxes, update insurance policies, and organize all their documents.
In both cases, once all done and the assets have been properly set up or divided out, you now need to start to take some time to decide what’s best for you and your family to stay in control of your financial future. One of the most significant considerations that is often not realized is tax implications on your assets upon your death. Without proper planning, this could drain a up to 46% of your assets to the government, rather than passing your hard earned lifetime capital to your heirs. A quick calculation can uncover your financial exposure today, and investment time will only compound that problem. There are many possible strategies to resolve this issue.
Getting a professional assessment as to your financial position is very important. An assessment of your risk management needs is essential including estate and tax planning as well. Its important to make sure your beneficiaries and other documents are up to date. Income replacement is usually the major reason behind Life Insurance and if you have dependants that should be reviewed immediately. The risk of income loss also needs to be mitigated with Critical Illness Insurance and/or Long Term Disability Insurance, which protects you in different ways but helps you maintain financial stability in a time that you get sick or cannot work.
Although things may be a bit unsettled being alone as there is a lot to be done to manage your financial affairs, you will find comfort knowing it’s been taken care of, once everything is in its right place.
Contact me for more information about how this could work for you.
