Helpful Financial Planning Actions You Can Do While Sheltering in Place

• Good Record-Keeping: My father-in-law-maintained copies of his account statements and tax returns. Having access to both allowed me to quickly assess my mother-in-law’s financial situation. The tax returns were particularly helpful for filling out their 2016 tax returns and have served as a basis for completing my mother-in-law’s returns since. Though I write our annual tax guide and have done my own taxes for as long as I can remember, doing somebody else’s taxes was a new experience. Being able to both identify which tax forms I needed and have a prior return to compare my work against have been immensely helpful.

It’s not just the record-keeping, but also knowing where everything was located. A few months before my father-in-law passed, I followed him around the house with a notebook, writing down where the various documents were kept. This helped me to know what to look for and where to find it. (If you are physically separated from your children because of the coronavirus or simple geography, consider writing out your own list. You can also walk around your own house using the camera on your phone to shoot a video.)

• Estate Planning: My in-laws updated their wills and set up trusts. My wife accompanied her parents to the estate attorney, while I dialed in. Knowing who the attorney was, having her know who I was and having a plan in place provided much peace of mind. (The current pandemic is a reminder of the importance of maintaining up-to-date estate-planning documents.)

• Account Access: My wife and I were listed as agents on the investment accounts prior to Les passing and continue to be now. This allows us to act as if we are the account owners. We also had the powers of attorney over my in-laws’ finances and continue to do so. Combined, these authorizations have enabled us to make financial decisions and take actions on their behalf.

There are issues of trust and competency to be considered when granting such authorizations since it can leave the door wide open for mistakes, abuse and fraud. My father-in-law trusted us; my wife and I are being fully transparent with my mother-in-law and she is doing the same with us. Not every family is fortunate to have this type of trusting relationship. As such, while naming agents and granting powers of attorney can be very helpful, much thought must be given to the decision of who to give them to.

• Pre-Planning the Funeral: My in-laws previously established their final arrangements. There are no questions about what Les would have wanted. We didn’t have to worry about purchasing a plot, deciding which casket to buy, etc.

Though nobody likes to think about their own demise, planning your own funeral has big advantages. The fixed costs are locked in at current prices. (There still may be variable costs, such as transportation.) Your surviving loved ones are not put into a position of making costly decisions at a time when they’re grieving. (Making financial decisions when you are emotional is never a good idea.) Plus, your personal wishes are more likely to be carried out. The latter particularly matters if you have special requests, such as casket preferences, cremation or a mausoleum. If you desire to be buried in a particular cemetery or a specific area of a cemetery, pre-planning can give you the option of waiting for a plot to become available on the secondary market. (Depending on your locale, the ability to speak to someone at a funeral home right now will vary. If you are unable to reach them, start the process of writing down what your final wishes are and mark a date on your calendar to call them.)

There are a few other things worth mentioning. I kept a separate notebook dedicated to my in-laws’ affairs. It proved to be invaluable for keeping track of various items as well as detailed notes about what still needed to be done. Call about survivor benefits as soon as possible following the deceased’s passing to get the ball rolling. For instance, the U.S. Office of Personnel Management told me it would potentially take two to three months before survivor benefits start. Be prepared to get copies of the death certificate (the funeral home should assist with this) and marriage licenses. Finally, don’t be afraid to reach out to friends and extended family. Many of them will want to help, even if it’s just sending food or being there for you (physically or by voice/video).