More Hotmail Messenger Bing Make MSN your homepage Welcome Page options Sign in Like Follow @MSN_Money 117k MONEY HOME NEWS INVESTING PERSONAL FINANCE MY MONEY saving & budgeting credit & debt loans Enter a name or symbol GET QUOTE REAL ESTATE retirement CAREERS AUTOS TAXES insurance taxes your money DJIA 12,675.75 -33.07 -0.26% NASDAQ 2,786.64 +2.47 +0.09% S&P 1,314.65 -1.35 -0.10% Scottrade: Open an Account. U.S. markets closed 1/6/2012 12:45 PM ET | By Kiplinger's Personal Finance magazine How to die the right way These 8 steps can help ensure that your exit from this life goes as smoothly as possible for you and your family -- and that you get the send-off you want. 47 85% 15% Shared 6726 times Like Tweet 2 0 Excuse No. 1: You're not going to die. Excuse No. 2: You've been too busy. Excuse No. 3: You can't stand thinking about a future that doesn't include you. If you're coming up with these or other reasons for not planning for death, you're in good -- if not smart -company. Just over one-third of Americans have a will, and fewer than half have any estate-planning documents at all, according to a 2011 survey conducted for EZLaw.com. "People don't want to think about dying. They're uncomfortable with the topic," says Danielle Mayoras, co-author with Andrew Mayoras of "Trial & Heirs: Famous Fortune Fights." "For that reason, they don't do anything about estate planning." But making arrangements for your final days and beyond isn't just about helping your family through difficult times. It also lets you designate representatives to make decisions about your care, withdraw money from your accounts to pay your bills and celebrate your existence in exactly the way you want -- even if that means letting you take your last ride, to the cemetery, in a lessthan-likely vehicle. World's best retirement spots Feedback 1. Write a will If you die without a will, complete strangers will decide how to split up your estate and raise your children. It's called dying intestate, an act (or failure to act) that leaves the divvying-up process to state law. In lieu of a will, the court gives first dibs to a spouse and children, followed by other relatives. If you have no family, your property goes to the state. And unless you appoint a guardian for your minor children in a legally executed will, their future will be determined by the court. Don't let those things happen. You can make out your own will for $70 or less at a do-it-yourself website, such as LegalZoom.com. If your circumstances are at all complex, you'll need a lawyer, who will charge about $300 to draw up a simple will and $1,000 to $3,000 for an estate plan that involves a will and a trust. New retirement: Fresh opportunities? 5 lesser-known retirement plans 5 ways to add to retirement income Is a 401k rollover smart right now? How to die the right way 5 tips for retiring before you're 50 TOOLS Be sure to update these documents periodically to account for major events, such as the birth of a child. If you don't, you could create the very mess you were trying to avoid. Are you saving enough for retirement? Calculate how long your savings will last. 2. Consider life insurance You can skip life insurance if you have no one to support or you have enough money socked away to provide for your spouse or partner. Otherwise, you'll need enough View more MSN videos coverage to meet your family's expenses when you can't. RECENT ARTICLES ON RETIREMENT How much income will your 401k provide? Go to CNBC Roth IRA conversion calculator Today's best savings rates To figure out how much life insurance you need, estimate what it would cost to pay off your debts, such as a mortgage and car loans, and to fund savings goals, such as college for your kids. With these needs accounted for, your family may be able to live comfortably on about half of your current pretax income. Multiply that annual amount by 20 to determine how much coverage you'll need. For example, it would take $1 million to produce $50,000 of annual income. More To calculate your total death-benefit needs, add up the amounts for paying off your debts, funding savings goals and providing annual income. But don't take that number as gospel, says Tim Maurer, a fee-only financial planner in Hunt Valley, Md. "It can be geared up or down, depending on your situation." Term life insurance, which carries a fixed premium over the life of the term (usually 20 years), can be surprisingly affordable, even for large amounts. For instance, a 35-year-old male nonsmoker might pay $470 a year for a 20-year term policy carrying a $1 million death benefit. Feedback 3. Establish critical end-of-life documents "A lot of people think that estate planning is only for when they die," says Danielle Mayoras. "It's also to take care of us during our lifetimes." To help family members carry out your wishes if you cannot, provide them with these documents: A release-of-information form gives doctors permission to share your medical records with designated representatives. Advance directives provides guidance when you are alive but incapacitated. A durable power of attorney for health care names a representative to make medical decisions on your behalf. A living will specifies the medical treatment you do or do not want at the end of your life. Continued: Avoid probate 1 2 SMART SPENDING Dems decry Romney's tax 'loophole' The GOP candidate's 13.9% rate draws attention to a tax break for investment execs that taxes profits at the capital gains rate of 15% rather than the regular rate of up to 35%. A durable power of attorney lets your agent manage your finances and legal affairs. Single page SMART TAXES 3 Next > RELATED ARTICLES W-2 isn't the only important form Poll: Rich aren't paying fair share of taxes Gingrich ploy skirts Medicare taxes Where not to die in 2012 results by The basics of estate planning 10 things you should know about long-term care Quiz: How much are your heirlooms and collectibles worth? Amy Winehouse got her will right- MSN Money Best places to retire abroad? Documents you need before you die - 1 - estate planning - MSN Money 16 things to do before you die - 2 - estate planning - MSN Money VIDEO ON MSN MONEY Recommend 257 votes 85% 15% Share More Shared 6726 times Email Print Messenger Facebook Twitter Digg SIGN IN 47 Comments NEWEST OLDEST BEST WORST CONTROVERSIAL 1 Doug Van Tassel (kinghawg) Best Places to Retire Overseas International Living Best Places to Retire The 10 best places to retire overseas - Tele... More results from Bing: web | videos | images Add a comment Sign in with your Windows Live ID, or create a new one. The 10 best places to retire overseas - Tele... 2 3 1/16/2012 10:26 AM I didn't come here to go to church. Why is it that the believers feel so compelled to sell me on their idea? I have no intention of trying to make them question their religion but they seem hell bent on blabbing about something that can neither be proven or disproven. 0 2 myownpin 1/10/2012 8:38 PM As of this time when my husband dies, everything goes to me. If I die first, everything goes to him. After we're both gone and some money is distributed, most will be given away to charities instead of going to the government. I'm still working on the animal part. That's the toughest part of the equation. Then as far as the money part, I guess I'm hoping there will still be something left when we both die and that the state or federal government hasn't taken everything before then. The way things are going the government will probably do away with the charitable deduction, but if my husband and I are both gone, who cares? 0 2 Prince of Darkness 1/10/2012 8:03 PM freedomfromthepress,! your calculations are quite deficient. Since 1983 workers have been paying 13% of their pay into Social Security. This includes the employer's half (but should be considered the employees burden). Factoring in a conservative 4% annual return and it will take 20+ years to recoup from SS what was paid in. The system may be going broke, but that's because prior generations (think "Greatest Generation" ) have been receiving far more in benefits than what they contributed over their working lives. For Baby Boomers the story is quite different. Boomers will be shortchanged by SS. 3 1 freedomfromthepress 1/10/2012 7:51 PM Richard Walker You are correct. 'Lenny-Yardbird' is way out in left field. This year made 60 consecutive years that my dad has paid into Social Security. For the vast majority of them, he paid the maximum. He is an accountant (among other things) and literally has every tax return, etc. for all that time. When he began drawing his SS, he put a spread sheet together. It showed every penny he had paid in, how much he was drawing, etc. It took him right at 4 years to draw out every penny he put in. If he hadn't still been paying in, it would have taken 3 years and 7 months. He got curious and got several of his friends to let him 'math' their SS. In every case it took between 3-1/2 and 4 years to draw out every penny they had put in. In just a few more years they had drawn out the interest their money had earned also. Did a little research and found out that EVERYONE draws out EVERY penny they put More 5 1 liasaddy 1/10/2012 7:38 PM The first step in dying "right" is to know where you are going! Read John 3:16. That's the first step in deciding what choice you will make. It is a choice, and if you fear the hereafter, you need to take it seriously. The word of God has all the answers, you just need to read it, starting with John, read the first 4 gospels several times. You will find information that you will be surprised by. You have nothing to lose but your fear, Try it, you will see. After you are comfortable with those first 4 gospels, then read more of the new testament. The old testament is a mirror of the new, and will be of interest to you when you begin to mature in your new found faith. I am telling you this from the viewpoint of someone who came knowing nothing, but wanting "something." I found everything I needed there, and I no longer fear, but feel peaceful. Now worry about the finances. Most of us don't have enough to worry about! 8 3 Sam Fox 1/10/2012 6:31 PM It is sad to see that so many disagree with what GOD told us in HIS word but HE told us also “That some become so smart they become as fools” and now we have the score to prove it. Sam Fox 8 3 merlin granberg (m granberg) 1/10/2012 5:38 PM Our Government has a 55% death tax so if you want to avoid the Government taking all your money when you die, the IRS allows any one a one time tax free gift to any one you choose,then that person can do the same to others as well. 0 6 paularp 1/10/2012 4:58 PM I recently went through the death of my husband of 33 years. Although we had time to discuss his wishes and other arrangements, there is still the grieving and having no documents in writing made it so much more difficult. If there is any advice I could give to anyone, young or old is to have you affairs in order. You never know when you will need them. That means Life Insurance, a Will, a Trust, Medical Directives and funeral and burial arrangements. I wish I would have had these all in place prior to his death. It would have made things so much easier. As for how to divide up an estate, that too is something that should be discussed prior to death so all are on the same page. This can alleviate a tremendous amount of family conflict and the last thing a grieving person needs is conflict. 10 0 shafer1217 1/10/2012 4:32 PM I think the best use of whatever is left from 45 years of working should NOT go to my children but to the grandchildren. Perhaps they can be smarter than their parents and assuredly smarter than their grandparents. Therefore, my advice to everyone whenever asked about wills, trusts, etc. is "skip a generation" and give whatever is left after pre-paying for your cremation and no debt and no cares about whatever the bank will do with the house to the grandkids or to your favorite LOCAL charity (forget the big boys, except for the Salvation Army, for they are all crooks anyway). Have a grand life and make certain you teach your grandchildren how to recognize idiots. 12 9 actorboy 1/10/2012 3:02 PM Of course if you die with little or nothing it's real easy to divey up. 11 3 RICHARD WALKER 1/10/2012 9:19 AM Lenny-Yardbird - I think you're entitled to all the money that you get from SS no matter how much money they made no one could have paid in $1.5mm. Even today the most anyone pays in a year is somewhere around $7000. 50 years ago it probably would have been hundreds in a year. If you took the position that you could have invested the money you would have had to put in $3500 per year for 50 years and had an average return of 6%. Not possible 5 1 JoeP731 1/10/2012 3:10 AM It's simple - we are not leaving the kids/grand-kids anything. We are now retired and what little we have we are spending on ourselves. We did our part, gave them a good home, helped where we could with their education, cars, car insurance, etc., clothed and fed them. Loaned them money that never has been paid back. Time for them to step up to the plate now. One adult child called us when we were out shopping and wanted to know where we were. We told him we were out spending his inheritance. 67 9 Sam Fox 1/09/2012 11:47 PM The thing that is most important to me is that when I die where will I go! John 3-16 will tell you just don’t wait to long to read it and heed it! You will not be given a second chance. O what a price to pay GOD sent HIS only SON to die for you now all you have to do is except HIM. Sam Fox 40 marisa9497 39 1/09/2012 10:50 PM My husband keeps putting me off from getting a will done. He thinks that we will both live to an old age and have plenty of time to get this done. Only he has income from his own LLC company, which I would not be able to run in the event of his death; he has some debt but no life insurance to cover it. Fortunately our home is paid for and we have no personal debt. We don't have any children, but we have never discussed if we should leave assets to relatives or our favorite charities. We have dogs with no provision for them to be taken care of. They only thing I've done is verbally directed my husband that he have a green funeral for me, and I've selected organ donor on my driver's license in the event of a fatal car accident. This is sad because we are educated but lack the will (pun intended) to get things done for our eventual deaths. More 18 0 td49 1/09/2012 7:32 PM watch money grabbing relatives 27 2 Upper Mid-west Guy 1/09/2012 7:31 PM Wills minimize Probate, Trusts minimize Taxes. Even estates with a will go through Probate, but it is nearly a rubber stamp approval rather than a protracted series of expensive hearings. There are instances where dying intestate is a benefit to your intended heirs. My former Brother-InLaw died last year with no will. With no spouse and two adult children our state's Estate Laws mandated his estate be split 50/50 between his two daughters - his wishes. With no Will his worthless POS brother and gold-digging sister could not fight the property disposal decision! If he had left a will they almost certainly would have tried to fight it in court. I do not recommend dying intestate but there are rare circumstances where it will be a benefit to your More 20 4 fiveofnine 1/09/2012 6:38 PM People that die without a Will or Trust leave their heirs a terrible mess. And if you are content to let the government deal with it, then we the taxpayers pay for taking care of your estate. This is a good article and hits the main points of estate preparation, but there is so much more. What about your car, phone, on-line accounts, credit cards, store cards, loans, insurance, utilities, employment benefits, notifying social security, family, friends, doctors, dentists and other organizations, cancelling subscriptions to magazines, newspapers, cable TV...? The only company that takes care of everything is Family Matters USA. 12 9 mauro802 1/09/2012 6:24 PM so why we have to worried about die any way all this work for money and people worried about somebody else money come on fix you own problems 3 25 Someone (jerry bernstein) 1/09/2012 6:03 PM Seriously, even in a community property state you need at least a will (a will is enough if the estate is small enough to avoid a probate....but if there would be a probate - you want a REVOCABLE TRUST). Probates can take years if things are complicated (ex: you leave something to someone who dies shortly after you do....not good). With a trust: it's cheaper than a probate and FASTER (weeks or a few months - not years). Probate has court fees, referee fees, appraisal fees, trustee fees, etc., etc. - none of that in a Trust. So you may pay an attorney $1500-2500 for a trust instead of using a $100 online will form - and it will still be a lot cheaper, easier, and faster with a Trust. Plus an attorney makes sure there are no mistakes - and even asks you questions you may not have thought about. 13 3 1/09/2012 5:46 PM Someone Please do not listen to Mister Manners, who says if you are married, you do not need a will. In some states, a spouse may not receive all of your assets if you don't have a will. For example, in New York the spouse gets the first $50,000, but then the spouse and children split the rest 50/50. If this is not what you want, you need a will. Don't assume that your spouse will get everything. 17 4 1 2 3 ADD A COMMENT DATA PROVIDERS Copyright © 2012 Microsoft. All rights reserved. Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges. 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