Expect the Unexpected – Survivor Plan

A close friend of ours in another state lost her husband to an unexpected illness.  In short, he was admitted to the hospital and in 1 week he was dead.  He left behind a wife in her thirties and 3 children ages 3,6, and 8.  He handled all the finances.  At the time of his death she had been a stay at home mom for many years.  She did not pay any bills or manage any of their investments.  In the last 3 days she has had to manage her children and arrange for his burial.  There was no will in place. She had to get a loan to cover the funeral and burial expenses.  The complete details of her financial picture are very sketchy at this point.  Hearing this scenario unfold over the last weekend confirmed to me the importance of having a survivor's plan for one's unexpected death.  If married, both spouses need to know where the plan is and how to put the plan in place. I can't imagine the emotional pain this young mother must be going through.  On top of that she has so many decisions to make and has no clue to the true financial condition of her family.  Below are some things I think are important to have in place to save your loved ones any additional pain from your unexpected death.

• A Will.  Everyone needs a will.  This is a document that states how you want your assets handled in the case of your death.  It also specifices who will care for your children (if the situation arises).  If your will specifies an executor, you both need to know how to contact the executor once the event happens.
• Life Insurance.  Each spouse needs to know what kind of coverage and what amount exists on the other.  They each need to know where the life insurance documents are located.  I think a safe deposit box or fireproof safe are good places to consider.  You also need to know how and when the proceeds of that policy are distributed.  You need to know if the proceeds from the policy will be taxable or not.
• Burial Plan.  You both need to designate what funeral home you wish to handle your burial.  You both need to sit down with a staff member to discuss usual or customary ways that payments are made for the arrangements.  You both need to designate a place of burial. It probably helps to shop around for desired locations and prices.
• List of important information on all financial institutions that handle your money.  The information needs to include names of institutions, account numbers, phone numbers, website addresses, login and passwords to all accounts.  You need all this information in a "secure location."  A safe deposit box is probably appropriate.  Each partner needs to know where the safe deposit key is.  The executor of your will also needs to know the whereabouts as well.  If you have no executor, a reliable friend/family member will suffice.  Be very careful in selecting the person who handles these situations.
• Update the beneficiary on all retirement and investment accounts.  If you die without the right beneficiary on your accounts, this can create a legal nightmare.  Updating these accounts makes for an easier transfer of the assets.  You also need to get your beneficiary's name down as trustee on bank accounts as well.
• Advance Directive - Power of Attorney for Healthcare.  If one partner becomes incapacitated, the other partner needs to have the power to make decisions.  Each partner needs to know before the event what decisions he/she will likely be making.  This document is usually drawn up by an attorney and notarized.  With married couples power is usually given to the spouse.  You can designate someone else to take this power if you wish.
• Advance Directive - Living Will - This spells out what you want done with yourself while still alive.  The directive can override your spouse's decision.  Alternately, your spouse can override what is stated in the living will.  The wording and decisions in a living will can be changed.  Most hospitals have copies of this on site.  The location of these 2 directives should be well protected.  A safe deposit box or fireproof safe are good options.
• Where the budget is located.  Each spouse needs to know who gets paid every month.  Each spouse needs to know how much each creditor gets paid and the method of payment. 

I'm posting this to make us all aware of the importance of prior planning for our family.  I don't want my family to deal with anymore than they have to at the moment of my death.  What have I left out?  Please comment below with additional information on any of the above issues.  Please also sound off on any other issues I may have failed to mention.