Four Ways to Prepare for the Inevitable

I recently received a call from a person out-of-state. “Our mom just passed,” they explained, “And we need to sell the home. We’ll be in town in a few days,” they continued, “and the house is stuffed full and we have no idea where to start.” 

Since our team specializes in these types of sales, we have systems that make the process as easy as possible for the heirs. It is still a daunting task for them, however, as they deal with wills, trusts or the need to go through probate. And then there are the belongings … many have no idea how to begin. 

The truth is that many do not like thinking of death and so do not prepare for the inevitable. Effective planning, however, can be a significant gift to those left behind. Here are four practical recommendations: 

1.    Get a trust.  
A trust makes the entire process easier because it clearly delineates who has the authority to make key decisions and administer the assets. Make sure all assets are included: property(s), bank accounts and investment/retirement accounts, vehicles, insurance policies and the like. Keep it current. While a properly written will is OK, a trust can also be used to manage estate taxes. Make sure that your trustee has a current copy. 

2.    Keep good records.
These include bank accounts, all assets, mortgages, vehicle registrations, etc. Your heirs need easy access to the documents and need to be confident nothing is missed. If items are in a safe, your trustee should have the combination. 

3.    Write a letter to your heirs.
Ofttimes successors are unclear of your wishes. A carefully crafted letter can explain funeral preferences. While many trusts state how the estate proceeds are to be distributed, a letter can provide more specific directions for the disposition of key items. I’ve seen families fight over who gets what: a letter can ensure your wishes are carried out and minimize family trauma.

4.    Start allocating belongings now. 
One of the hardest things for heirs to handle are the accumulated belongings left behind. Frequently items you treasured are no longer desirable, and beneficiaries feel guilty disposing of them. Distribute items now while your family still appreciates them and make the tough choices to reduce the amount of belongings you have. Your family will appreciate it. 

Prepare now while you can: once you are gone, it is too late. 

Carl Medford is a licensed Realtor with Keller Williams Realty and a licensed general contractor