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Originally Posted by Riley14
I realize this may not be the happiest topic of conversation but I do feel the need to be prepared in the event either myself or my spouse passes away. No children in the equation and we are both in our early thirties. What are some things that we need to be thinking about that will make things easier if something does happen to one of us? We want to sit down and have a discussion about desires/thoughts/etc. but I am not really sure of what questions we should be asking or what we should be doing to prepare. I am by nature one that likes to be prepared and think ahead and feel that I need to embrace this topic to ease the time when it does happen. More along the lines of estate/family provision goals to have.
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Hi Riley14--
To allow your spouse to handle and wrap up affairs in the event of the worst case scenario, you'll both want to have drafted up and signed (1) a living will; (2) a power of attorney; and (3) a last will.
(1) The living will covers any directives you may have during the course of healthcare treatment especially if you become incompetent at any time during it. (2) will allow the spouse to sign the consent forms, etc. under the same situations. And (3) allows you to avoid probate.
As a legal professional I am screaming this at you: avoid probate. The probate courts in almost every jurisdiction are overloaded with cases because something like 70% of people die without a will. It will take them months to get to your case, track down all the assets and liabilities, and pay out the creditors, all the while the court-appointed attorney is getting paid $100 an hour out of your estate to figure it out. Spend an afternoon figuring it all out like once every couple years, have an attorney write one up for a flat fee, and be done with it.
From a financial standpoint, consider buying term life insurance for say, 10 years. Assuming you're both healthy, it will be dirt cheap - something like $20 a month for $500,000 of coverage. So if something tragic does happen, the spouse will be financially secure for some time until things can get sorted out.
(After 10 years, I don't advise buying term life insurance - it gets more expensive as you get older. And in any case, use that 10 years to save money - that, over the course of ten years will function the same way as a term life insurance payout - financial security for the surviving spouse).