Estate Planning for the Terminally Ill: 7 Things to Do

Estate planning is important for everyone, but it’s crucial when you have a terminal illness. Your loved ones will be faced with coping with your loss, and you don’t want to add to their burden because you didn’t take care of end-of-life financial planning. 

When making plans for the end, consider these seven points in the estate planning process. 

1. Make Sure Your Will Is Up to Date

If you don’t have a will, it’s crucial that you put one together. Without a will, the state can decide what happens to your assets. If it’s been a while since you reviewed your will, look at it now and make sure it still reflects your wishes. If not, make the revisions you feel are necessary.

You may want to give some of your money or property to your loved ones while you’re still living. Or you may consider setting up trusts for your children or any charities you’d like to support. A financial advisor can help you understand the pros and cons of trusts. 

2. Prepare a Living Will

A living will, sometimes called a personal directive, explains what you would like in terms of your health care. It goes into effect if you are incapacitated and can’t make decisions for yourself. With it, your loved ones know they are making the health care decisions you would make if you could.

3. Set Up a Health Care Power of Attorney

This document goes hand-in-hand with a living will. It gives someone else the authority to make health care decisions for you if you can’t make them yourself.

4. Set Up a Power of Attorney

A power of attorney allows someone to make financial decisions for you when you aren’t able to. You can name the same person as your power of attorney and your health care power of attorney, but you don’t have to.

5. Organize Your Papers and Your Online Documents

While you’re able, put your important information in files and formats that your loved ones can easily open. Also, make sure they can access your financial accounts. You may want to add a trusted loved one to your bank accounts so they have access to money they need without any delay.

You’ll want to include investment and bank records, Social Security benefits, deeds, insurance policies and other documents in the files they can access. An estate planner can help you pull together a list of everything you need.

6. Review Your Life Insurance Policies

Make sure your loved ones know what life insurance coverage you have and who they should contact after your passing. 

You may also want to get final expense insurance, which is coverage that pays the cost of your funeral and burial. It’s insurance you can get when you’re terminally ill so your loved ones don’t have to cover those costs.

7. Consider Planning Your Funeral

Along with covering the expenses of your funeral, you may want to prepare a document that outlines what you want. It can be a gift to your loved ones to know they are carrying out your wishes.

We Can Help Get Your Estate in Order

It’s smart to take steps to plan your estate even if you’re healthy. After all, you never know when the unexpected may happen. For help with this list and for other estate planning advice that’s personalized for your needs, reach out to a Farm Bureau advisor.