End-of-Life Planning: A Matter-of-Fact Guide to Preparing for the Inevitable
A friend recently shared with me that a colleague of hers had suddenly passed away. “He was in his mid-fifties; he wasn’t sick. He had a wife and two kids. They weren’t prepared,” she explained with pain and fear in her eyes. It was easy to see that she was having a hard time processing the surreal feelings that come with losing someone, especially so unexpectedly.
As death often does, it prompted her to contemplate her own mortality and confront the fact that this could happen to her—to anyone—at any time. It also made her realize that neither she nor anybody close to her had done anything to prepare for the end of their life. “It’s like we all think we’re going to live forever!” she said incredulously as she blamed her Hispanic culture. But, from where I stand, this issue isn’t one that is so easily contained by cultural boundaries.
The sobering reality.
According to a couple of studies and surveys published within the last few years
67% of Americans do not have a will[1],
Only 1/3 of adults in the U.S. have an advance directive[2], and
54% of Americans do not have any type of life insurance[3].
I mean, who wants to think about dying? I certainly don’t—and didn't—until two years ago when my dad, who had just turned 65, went from “not feeling well” to gone in literal months. Three months later, my grandfather passed away, and not long after that
Two people within my very small social circle died without warning, one of whom was middle-aged and (seemingly) healthy.
A shooter took the lives of 3 innocent people at the very time and place I had parked my car to take a walk with a friend, and
My sister was in a bad accident that, in addition to her many serious injuries, left her in critical condition and caused a stroke that almost took her life.
Every person except one was caught completely unprepared. Probably because they hadn’t expected anything would happen—especially to them—especially so soon.
What about you? If something were to suddenly happen to you, would your family be financially prepared to carry on without you?
If you’re like the majority of Americans, your answer is no.
I get it. You’re young. You’re healthy. You’re busy. “End-of-life” feels so far away. But the sobering fact is life is unpredictable. We have no idea what the future holds for us except, ironically, that someday it will be our time. Not one of us will avoid death. Yet somehow, after all these years, we, as a human race, act like it isn’t a reality we all face and isn’t something for which we should all prepare.
Will & Trust
The first thing someone typically thinks about when they hear “end-of-life planning” is a will. The second thing they think is: “Those are only for the wealthy. I don’t have enough money to need a will.” In truth, a will is for anyone who wants to make sure that what’s important to them is cared for after they’re gone.
Living Will and Testament
A will allows you to specify how your assets and liabilities should be distributed and/or managed when you die.
“Assets” and “liabilities” are just fancy words that mean the things you own (house, car, jewelry, furniture), owe (credit card balances, mortgages, loans), and/or are responsible for—including your children, adult dependents, and fur babies, too.
(Ir)Revocable Trust
An irrevocable or revocable trust (an optional add-on to a will) is a legal arrangement whereby one person (the trustee) holds and manages assets for the benefit of someone else (the beneficiary) by following the specific instructions laid out by the person who created the trust (the grantor).
This option is typically more expensive to set up but, for some, is worth it because
It’s not accessible to the public,
It gives you a higher degree of control and, most notably
It can help skip long and expensive probate procedures.
Having a documented plan that spells out your desires and intentions is important for anyone but is especially important for business owners like you, who have invested years—or even decades—building your business and want to make sure your legacy is protected, and your vision is carried on.
Proper estate planning can reduce the amount of taxes your beneficiaries will have to pay, keeping more of your wealth for your heirs. Plus, if you have financial obligations related to your business, such as loans, leases, or contracts, end-of-life planning helps prevent them from becoming a burden on your family or the business itself.
If you do not have a will in place when you pass, your estate will be distributed according to the laws in your state. This means your business’s (and possibly your child's) fate will be left up to a (hopefully) impartial—but also uninvested—judge. A judge who wouldn’t and couldn’t possibly know what was most important to you or the decisions you would have made yourself.
There’s no reason for this to be the case. There are too many affordable resources out there not to have executed a Last Will and Testament.
Put it into action.
The complexity of your estate and individual circumstances may influence the cost and type of services needed, so it’s wise to start by assessing your estate planning needs. Robert Steen, Ph.D., CFP at USAA, breaks down this pivotal (and often overlooked) first step into five easy-to-understand categories in the article “5 key pieces for an effective estate plan.”
When you’re ready, schedule a consultation with a local attorney who specializes in this area. They will work with you to establish your assets, select your beneficiaries, and help you identify any specific requests that should be included. The attorney will then draft the documents based on the information you’ve given them, confirm they accurately reflect your wishes, and schedule a signing appointment with a notary and witness to make it official.
If you’re concerned about cost, consider exploring legal aid organizations and pro bono programs offered by law firms or attorneys. For example, LawHelp.org is a national collaboration of nonprofit legal aid and pro bono organizations that provides free legal information, resources, and assistance to individuals who do not have easy access to legal services. Check out their Find Help by State page to see if they can be of assistance to you.
If your needs are straightforward, you could consider online legal assistance services like LegalZoom, Rocket Lawyer, or products like Quicken Willmaker & Trust, but be aware of their limitations. Legal professionals play a crucial role in crafting a sound and effective will and trust tailored to your unique circumstances and ensuring compliance with relevant laws. Generic, off-the-shelf templates geared toward the masses can only do so much.
If you’re not feeling the DIY vibes, schedule a free session with Whitespace Consulting. We can provide you with access to low-cost legal services that will help you get these vital documents in place in no time at all.
Advance Directive for Health Care
Creating a Last Will and Testament is a crucial aspect of end-of-life planning, but it's not the only piece of the puzzle. A signed and notarized living will and power of attorney are crucial, too. Both of these components are covered by an Advance Directive for health care.
An Advance Directive for health care is a document that outlines your healthcare wishes and who you would like to carry them out, should you become unable to do so yourself.
More specifically, an advance directive asks you to make decisions about if, when, and how you would like your medical provider to
Use artificial means to extend your life,
Treat your pain or discomfort,
Donate your organs,
Perform an autopsy, and
Dispose of your remains.
Weird things to think about but important none-the-less because, as Tara Parker-Pope reminds us in the Washington Post article, “6 joyful steps for end-of-life planning,” your choices are “a reflection of your values, your goals for healthy aging, and the hopes and dreams you have for those you love.”
What this means for each of us can be very different. You do not want to leave these very personal decisions subject to whoever is appointed by the laws of the state where you live—which is who will be making the call if you do not have an advance directive in place. (And who won’t be your partner if you are unmarried and have not named them as your proxy.)
I speak from personal experience when I say these topics are hard enough to think about at any time, let alone when you’re in shock or, heaven forbid, grieving. Don't burden your loved ones with this responsibility by waiting until a crisis strikes to take action. Ensure those close to you understand your preferences and are empowered to make decisions in line with your values by completing an advance directive for health care now while you’re still healthy and clear-headed.
Put it into action.
The good news is, the Advance Directive for health care is the easiest and most affordable part of end-of-life planning. But before you do anything, spend some time thinking about who you’d like to be your medical proxy. You want to feel confident this person understands you: your goals, your values, your priorities, and that, should they be asked to make decisions on your behalf, they will carry out your wishes—not theirs or anyone else's.
Take a look at the resources below to see how to do this yourself*, or contact Whitespace Consulting to speak with a financial advisor for free and gain access to an affordable service that can help you get this done—now.
*If you are a veteran, it’s important to note that the VA offers an advance directive specifically for veterans. If you’d like to know more, please contact your local Veteran’s Affairs (VA) office for more information.
Life Insurance
These days, there’s a lot on the interwebs touting life insurance as an effective way for the policyholder to make passive income. But, as is the case with all get-rich-quick schemes, it’s high-risk and low/no reward for most. Instead, I encourage people to think of life insurance as "income insurance," not a money-making opportunity.
Life insurance is a safety net, providing your loved ones with a financial cushion should you pass away unexpectedly. It can cover funeral expenses[4], outstanding debts, and most importantly, replace your income, ensuring that your family can continue to meet their everyday living expenses without you.
I say “most importantly” because according to a survey by Life Happens/LIMRA and a study by the LIFE Foundation, if a primary wage earner were to die
40% of Americans say they would immediately have trouble covering everyday living expenses, and
70% of U.S. households with children under 18 would have trouble within a few months.
One of the most fundamental ways to ensure your family's financial well-being is through life insurance—and yet, 54% of Americans do not have a policy in place! Maybe this is because people think that life insurance costs more than it actually does[5]. Or that you have to be in perfect health to get coverage. But I promise you, affordable policies that do not require a medical exam do exist!
If your loved ones depend on your income (or the income generated by your business) to pay the bills, it's essential to have life insurance.
Put it into action.
Whitespace Consulting has a licensed Life Insurance Producer on staff, ready to help you find the policy that gives your family the coverage they need and fits within your budget. All you need to do is schedule a free Financial Needs Analysis session to get this simple process started.
Otherwise, finding a life insurance provider is just a Google click away. To save you some time, I’ve listed a few best-of blogs I found during my search here:
Nerd Wallet: 8 Best Life Insurance Companies in September 2023
Policy Genius: Best life insurance companies: Expert-reviewed in 2023
A compassionate call to action.
Join me in normalizing end-of-life planning and fostering a legacy of compassion, preparedness, and enduring love.
Now is the time to embrace the inevitable with courage and care. Whether it's crafting your will, establishing a trust, or initiating difficult conversations with your loved ones, every small step you take is a tremendous gift to those you hold dear. Begin the journey of securing peace of mind for yourself and your family, today.
How we can help.
Whitespace was founded to help business owners achieve peace of mind in both their work and personal lives. Knowing that your affairs are in order and that your family and business are protected is just one of the many ways you can move closer to that goal.
So, if you would like someone to hold your hand as you navigate unknown territory and direct you to affordable resources that can get your documents in order, we are here to help.
Schedule a free Financial Needs Analysis session to identify what needs to be done to make sure your loved ones are cared for after you're gone.
[1] Caring.com survey in 2021.
[2] 2019 study published in Health Affairs.
[3] 2020 study by LIMRA.
[4] According to the National Funeral Directors Association, the median cost of a funeral with viewing and burial was $7,640 in 2019.
[5] 44% of respondents to the same survey overestimated the cost of life insurance. Insurance Barometer Study, Life Happens, and LIMRA.
[6] NPR Life Kit
Whitespace Consulting and its authors are not responsible for any actions taken by readers based on the information provided. Readers are urged to exercise their discretion, judgment, and due diligence when making decisions related to end-of-life planning, legal matters, financial planning, healthcare, or any other topics discussed on this website.
