5 essential steps you need to take for your family RIGHT NOW apart from taking Insurance!
In my experience as a Financial Advisor, I have come across numerous undesirable situations which could have been avoided if a few simple yet often ignored actions were undertaken in time.
Here, I list a few such points that will help you safeguard the interest of yourself and your family in these prevailing times of uncertainty:
1. Make a Will
You have not seen tomorrow (or even the next minute!).
Last year, I had witnessed the passing away of a client due to COVID complications. In the absence of a will, I also witnessed the infighting and bitterness that brewed. Simply because there was no will to divide his assets as per his wishes.
ProTip: Contact your Lawyer/CA, and get your Will drafted now. Life is unpredictable and this one act of yours can maintain harmony within your family.
2. Put your accounts credentials in one place
Does your partner/family know how to access all your digital financial resources, in your absence?
In my experience, I have seen numerous family members going through enormous paperworks, workarounds, waiting times and hassle just because they did not know the access password or PINs to the digital accounts.
ProTip: Make a note/spreadsheet of User Ids, Passwords, PINs for all financial accounts. Keep it securely in a pen drive. It will immensely help your family access all that you have so painstakingly accumulated for them without any Hassle.
3. Ensure nominee in your accounts
Much ignored aspect in the forms that we fill for a new Bank account/new demat or any new financial service that provides returns.
Not having a nominee can result in multiple visits, affidavits, proofs and a lot of mental hassle for your loved ones to simply make that rightful claim to your assets.
ProTip: Ensure that all your accounts and financial instruments have a nominee listed in it. Preferably, do not keep the same nominee in all the accounts. Divide it among your immediate family.
4. Let your family know about financial people in your life
Trusted and genuine advice can be a great support in sorting out financial issues that might arise after the passing of a loved one.
It is a great help if your family knows your Trusted CA, Advisor, Lawyer who knows about your investments and whom you trust to provide good, solid advice to your family.
ProTip: Make a note of such people and let the family know about them and their contact details.
5. Let your family know about your financial plan and portfolio
You must have invested in various instruments keeping some Financial goals in mind. And your family might not know about that. That plot you had purchased might have been purchased as an asset for your retirement after thinking of the return potential.
ProTip: Such information, if passed on to your loved ones can help them gain a good perspective on your investment and help them better decide on what assets to liquidate and what to persist with. Knowledge of your financial goals will help them with the continuity of investments, thereby maximizing its return potential.
In case you have not yet implemented any of the above steps, hope reading this blog makes you take action and become financially wise.
