Tuesday, April 25, 2017

Old Age And Illness: What It Means For Your Money

money use
As we approach old age we need to think about our finances. Understandably, it’s often the last thing we think about. When we’re in good health we don’t worry about what will happen to our money. This means that our finances can be left in disarray when we pass away. Don’t wait until old age or illness are upon you, make the most of your savings before that point. There are a few things you can do to make sure your money is used how you want it to be once you're gone... 

Get Your Finances In Order

The first step is to get your finances in order. This seems like quite a general statement but what it actually means is organizing the remaining money that you have. You need to know how much money you have. Of course, you might know how much is in the bank, but what about money tied up in property or business? Managing your money when you are well and able is a good first step. It becomes increasingly difficult to make decisions once you are ill or considered unfit to handle your own account.

The good news is, organizing your finances needn’t be too difficult. Start by filing all of your financial documents in one place. This will make it easier to keep a record of things. The make a list of all your expenses and incomes. Work out which, if any, debts you have to pay, what you’ve invested and what is saved. Having all of this information will be incredibly useful if someone else has to take over and manage your affairs. Don’t be stuck in a situation where only you know your own financial situation.

Managing Your Estate

Planning what happens to your estate when you die is simple and straightforward, but too many of us don’t do it. The problem is, if we don’t have legal documents which outline who gets what, it can lead to messy legal proceedings. Probate lawyers from IRB Law will be able to give you more information about what’s involved in planning your estate. In essence, you will need to prepare documents which determine who inherits your money and property. You can even ensure that the amount of inheritance tax paid on your estate is minimized. So this is a very important step to take. 

Funding A Funeral

Unfortunately, loved ones are sometimes forced to make financial decisions about funerals in the midst of their grief. To avoid these kinds of situations and expenses, you can cover the costs before you become ill, or even before old age. Dedicated savings accounts are one way to save money. Alternatively, some life insurance companies cover the costs of a funeral.

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