Have you stopped to re- think about what happens to your loved ones after your passing? Lifetime of income is probably the tip of the sword so to speak when it comes to retirement planning for baby boomers. Leaving a legacy behind for your heirs is up there as well, but have you really thought about what happens to that so called legacy?
One the of the most common questions I get on a weekly basis is, “what happens to my money when I die?” or “will that money be passed along to my beneficiaries?” We wonder about the assets, but not the debt.
Most debts held in the decedents name only will be paid from assets in their estate. In the case of secured debt, if the assets do not cover the debt, the property may be sold or repossessed to cover the debt. In the case of accounts held jointly with another person, the surviving account holder will be responsible for any remaining debt.
That’s why life insurance and annuities with death benefits are so important. It turns out to be much more than giving upon death, but income replacement for the other costs associates with your estate that someone else now takes the burden of.