What Happens When You Die?

No, this isn’t an eternity conversation (although that’s much more important)…

This is a “what happens to your family when you die” conversation.

It seems like nobody wants to talk about this, and I can’t blame them.

But the old saying is true:

The only two guarantees in life are death and taxes (something like that).

So if that’s the case, the question becomes, “What do I want things to be like for my family once I pass on?”

Most people don’t know this, but I own a business that gives me an uncommon visibility into what circumstances look like for a family after a death.

Pay attention when I tell you this, I implore you…

Most people don’t have much of anything set up to make sure their families aren’t torn apart.

Torn apart from fighting over who gets what from the estate, who pays for what, who is in charge, etc etc.

You see siblings that haven’t talked to each other for 20 years because one person wanted dad’s special timepiece or mom’s heirloom ring, but the other sibling got it instead.

Seriously, it’s almost unbelievable how common this is.

It all happens because the person who died, never took the time/initiative, know how, whatever…

To set things up to be EASY for their loved ones (heirs)…

And avoid the stress, frustration, division, and financial burden of getting things sorted out for everyone involved.

If you don’t have something set up, it’s not your fault.

Most people don’t want to think about dying, that’s #1.

#2, it’s a bit of an overwhelming (and boring) topic to research.

I consider myself to be a fairly competent person, but we didn’t have anything set up until just recently.

Specifically, things like Trusts or Living Wills.

Do you know what happens when you die without these in place?

I didn’t.

Stick with me here, because if you don’t have something set up, you’re absolutely setting up your family for what I described above.

Here’s a quick breakdown of how this works, from my experience.

If you die with no Living Will or Trust, you die “intestate.”

There’s a whole process that happens in this case. It’s messy.

And in some cases, the government ends up with your families assets (hard to believe, but this is a fact).

If you have a Will in place, it will need to be “probated”

Want to do Probate? It’s better than having no will, but it’s still a process.

Here’s an overview of the probate process:

1. Filing the Will: The executor named in the will (or a court-appointed administrator if there is no will) files the will with the probate court. This is usually done in the county where the deceased lived.

2. Validating the Will: The court reviews the will to ensure it is valid. This may involve confirming that the will was properly signed and witnessed according to state laws.

3. Appointing the Executor: The court formally appoints the executor named in the will to manage the estate. If no executor is named or the named executor is unable or unwilling to serve, the court may appoint an administrator.

4. Notifying Heirs and Creditors: The executor must notify all heirs and potential beneficiaries of the probate proceedings. Creditors are also notified and given an opportunity to make claims against the estate for any debts owed by the deceased.

5. Inventorying the Estate: The executor is responsible for identifying and inventorying all the assets and liabilities of the deceased. This includes real estate, bank accounts, investments, personal property, and any debts.

6. Paying Debts and Taxes: The executor uses the estate’s assets to pay off any debts and taxes owed by the deceased. This can include final income taxes, estate taxes, and any outstanding bills or loans.

7. Distributing the Estate: Once debts and taxes are paid, the remaining assets are distributed to the beneficiaries as specified in the will. If there are disputes among beneficiaries, the court may need to resolve them.

8. Closing the Estate: After all assets have been distributed and the estate’s financial affairs are settled, the executor files a final accounting with the court, and the probate process is closed.

What’s the best option then, you ask?

Well, it depends on your situation.

Creating a Living Will is the most affordable (up front) option.

There’s lots of options to get this done. One of the simplest options is to set up a membership through LegalShield.

(You can get set up through our friend Brian Carruthers…he told me the best resource to direct you to is the webinar HERE).

It’s $29.95/mo for their services and that includes setting up a Living Will, if my memory serves me correctly.

Technically you could become a member, get the Will done, then cancel if you want to. We maintain an active membership for several reasons though : )

It’s a pretty seamless process.

Boring, a little tedious maybe, but important as you’ve just learned (or been reminded).

The other option is to create a Family Trust.

A family trust is a unique way to plan what happens to your stuff (like money, property, and possessions) after you die. Here are some benefits of having a family trust, explained simply:

1. Avoids Court: When you have a family trust, your stuff doesn't have to go through a long and costly court probate process. This makes it faster and cheaper to give your things to your loved ones.

2. Keeps Things Private: Unlike a will, which becomes public after you die, a trust stays private. This means nobody outside the family needs to know who gets what.

3. You Stay in Control: You can change your trust whenever you want while you're alive. You can add or remove things and decide who gets them.

4. Helps If You Can't Make Decisions: If you get sick and can't manage your estate, the person you picked (the trustee) can take care of it for you without going to court.

5. Makes Distributions of Assets Easier: A trust can make it easier to give your things to your loved ones. You can decide exactly how and when they get it, which is great if you have younger kids who aren’t ready for a lot of responsibility.

6. Protects Your Stuff: In some cases, a trust can help protect your things from being taken by people you owe money to or in a divorce.

7. Saves on Taxes: A trust can help reduce the taxes your family might have to pay on what you leave them. This way, they get more of your money.

8. Smooth Transition: A trust helps make sure everything is taken care of smoothly when you die, without any big delays.

9. Helps Special Needs Family Members: If you have a family member with special needs, a trust can help take care of them without messing up any government help they get.

10. Supports Charities: You can set up your trust to give money to your favorite charities.

11. Reduces Family Fights: By clearly saying who gets what, a trust can help prevent arguments among your family after you’re gone

A lot of Family Trusts (aka a Revocable Living Trusts) can cost upwards of $5K to set up.

But we were recently introduced to a company called “Legacy Lock” that gets rave reviews. Normally they charge $2,500 for their service, but you’ll get the friends and family discount for $1,997 if you mention we sent you.

You can visit their site here: https://www.mylegacylock.com/

(No affiliate link or commission, just adding value to our readers)

So, no matter what you choose to set up, we encourage you to look into setting up something (with the help of a legal professional).

Your family will thank you…seriously.

Oh, and please look into setting up life insurance as well. I hear too many sad stories of people losing their beloved childhood home, the spouse having to remarry prematurely for financial reasons, or someone getting sick and no longer qualifying for the insurance because they waited.

But that’s probably a conversation for another day.

Until then, own what matters : )

Brian, Sarah, Riser & Haven

P.S. If you haven’t answered life’s most important question, anything else we talk about is irrelevant. So consider watching a few minutes or more of this: https://youtu.be/E7t9U1H0t1U

^Disclaimer:

^{bconnectd provides reviews of products and services for informational purposes only. We are not responsible for any decisions or actions taken by users based on the information provided in our reviews. bconnectd does not assume any liability for the quality, performance, or outcomes related to the purchase or use of products or services reviewed on our platform.}

^{Users are encouraged to conduct their own research and consider their own circumstances before making any purchasing decisions. bconnectd is not liable for any dissatisfaction, issues, or disputes that may arise between users and the companies offering the products or services reviewed on our platform.}

^{bconnectd may receive compensation or other benefits from companies for reviewing their products or services. However, such compensation does not influence our reviews, and our opinions are unbiased.}

^{By accessing and using our reviews, you agree to release bconnectd from any liability related to your purchases based on the information provided on our platform.}