Over the past two years, close to 517 people were killed and 1,772 were seriously injured on the Mumbai-Goa highway. Days after coming across with these statistics, I read in a national daily about four people getting killed in a road mishap on the highway, and that the deceased included the breadwinners, while the rest of the family was seriously injured. And, all the while, I felt sympathy for those killed – people who, when they left home, would have never imagined that such a tragedy could happen to them.
Most of us live thinking and believing that we would not be affected by the vagaries of life. But when disaster strikes, we are left grappling with reality. Financial planning can help you and your family members get a better grip on finances. It helps you not only know how the finances are placed in the present situation, but also allows you to continue to fulfil the goals you had dreamt of.
Here are a few things that you should keep in mind:
Keep a set of all your documents with your financial planner:
After the sudden demise of her husband, Mrs Rane (name changed) was in a state of shock and was unable to find all the related documents that would help her during the financial crisis. After searching, she realised that those papers were misplaced. To prevent yourself or your family from landing in such a situation, keep a set of all your documents with your financial planner. This should include your insurance papers, bank statements, etc, as this would help in payment of all your medical bills, in case of sickness or any other tragedy.
Make a will:
Mrs Rane also realised that all of her husband's assets had to be distributed among her children and few of his close relatives. However, when the time came, she did not know how to distribute the assets. To avoid such situations, create a will that will help in streamlining the process of distributing the assets when such a situation arises. Explain every detail to your financial planner and a lawyer and how you would want your property be distributed among the surviving members of the family.
Include plans for the survivor's future goals:
When Mrs Rane's husband was alive, he would speak passionately about his kinds and their dreams. However, he failed to create any emergency plan for them since he never gave disaster planning a second thought. If you have such desires, make sure you act on them immediately. Create a special trust fund with the help of your financial planner, where every month you would invest a certain amount of resources so that your children can complete their goals without hassles.
Power of attorney:
Following the death of her husband, Mrs Rane was in no state of mind to make any kind of financial decisions for her family.
As a part of a sound financial plan, it is advisable that you appoint a trustworthy person with a power of attorney, who can take quick and sound financial decisions on your behalf in emergencies.
Take care of children's rights:
The tragedy for the Rane family would have been graver if Mrs Rane had not survived the accident. If both the parents of a family die unexpectedly, it is the children who find themselves in the most horrible position. Make a provision in your will to hand over guardianship of children, if they are still minors. While this is only applicable if both the parents have expired, this provision will ensure that your children are taken care of, even in your absence.
There is no sure shot way to be prepared for any sort of tragedy, as it always comes unannounced. All you can do is create a financial plan that will enable your family members to continue living life and still making sure that your goals and dreams are fulfilled.
Source: Economic Times
Best Regards
Prakash Nair
No comments:
Post a Comment