Life is uncertain, and one is always worried about leaving behind enough to ensure financial security for the family in case he or she is not around to take care of them. Apart from ensuring that one is adequately covered with life insurance and planning investments and savings for the future, it is also important to ensure smooth transition of finances and benefits to the family in the event of an untimely demise of the primary earning family member.
Here are some things one must do right away-
- Prepare a will. By doing so, you can specify the manner in which your assets should be distributed to the family members after your demise. This will avoid unnecessary conflicts and fight over property matters. Though the will need not be on a stamp paper, it is advisable to get it done and witnessed by a lawyer for better credibility. Keep multiple copies of the will in your house, with your lawyer and in your bank safe deposit locker.
- Nominate your spouse/children in all your investments-bank accounts and fixed deposits, demat accounts, bonds, mutual funds etc. This would enable easier settlement of claims.
- Keep clear and complete record of all your investments and savings and also make your spouse aware of where these records are.
- Make your spouse a joint account holder in all your bank accounts and investments. Banks offer various types of joint a/cs. “Joint” holding a/cs can be operated jointly by both the a/c holders, “Either or survivor” can be operated by any one of them, ”former or survivor” gives the right to the survivor to operate the a/c if the primary a/c holder is no more.
Of course, the loss of the family member can never be compensated for, but one can always take care that should such a situation arise in future, the family need not have to deal with administrative hassles regarding the finances of the deceased member in addition to having to cope with the emotional loss.