Search Results for: funeral debt

Having debt or getting behind on paying bills is no longer a hidden or shameful life event. Today, the average American household is carrying over $5,000 in debt. People in this category aren’t spendthrifts, but they include people who have lost their jobs, or an expensive illness has hit them or an unexpected funeral debt.

There is no longer any guilt associated with the inability to pay your bills. More people are turning to personal installment loans to help. Companies offering installment loans can customize individual payment loan plans for their clients. Westernshamrock.com is one of the leading installment loan companies in America.

An installment loan involves a specific amount of money to be repaid with a fixed interest through fixed monthly payments. Installment loans are offered in both an unsecured or secured traditional loans. Installment loans can be customized to pay for the following: [Read more…]

By Steven J. Weil, Ph.D.

What Does the Probate and Inheritance Process Require?

After the funeral, financial and legal decisions are required to settle an estate.  Net assets must be transferred to legal heirs. This is called the probate process, which may include filing various federal and state tax returns on behalf of the deceased. 

A probate court must approve and validate the legality of a will and “grant probate” to the executor as part of the inheritance process.  This necessitates the complicated job of recording all assets and debts of the deceased and all the pertinent financial records to comply with the will, the tax laws, and the courts. 

1.  Enlist the aid of a lawyer and/or tax accountant in organizing a preliminary inventory. State laws require that a reasonable effort be made to do this within specified time periods. The will may contain most of the information about assets and debts; but it may have been drawn up years ago, and the assets and debts may have changed. The information needed may come from many sources, e.g. life insurance policies, bank and brokerage accounts, safe deposit boxes, stock certificates, bonds, real estate contracts, vehicle registrations, and old tax returns, et al.  There may be ties to fraternal, military, or social organizations. [Read more…]

By Steven J. Weil, Ph.D.

Losing someone close is not only a sad and confusing experience, but for the person who must deal with the financial and legal matters, it carries heavy responsibilities.

Overview

The saddest decisions come quickly. The attending doctor must sign the death certificate and decide whether an autopsy is required. Although the state may not require an autopsy, one may be desired if, for example, the cause of death may relate to a hereditary issue.  The time to decide is limited.  Similarly, if the deceased was an organ donor, time is of the essence.

It is also important to find out about specific wishes regarding funeral arrangements and to coordinate with family and friends.

Next, financial and legal decisions will be required to settle the estate (see the general and tax steps below). Remaining net assets must be transferred to legal heirs. This is the probate process,* which may include filing various federal and state tax returns on behalf of the deceased. 

(* A probate court must approve and validate the legality of a will and “grant probate” to the executor.  Part II of this article will provide more detail about the dreaded probate and inheritance process.)

A “Final Accounting” verifies legally that the net assets have been distributed properly after all allowable expenses are paid. [Read more…]

By Brad Cummins

For most people, life insurance may represent just simply a way to provide cash for loved ones in the event of the unexpected. The death benefit proceeds would be paid out so that funeral costs and other large debts could be paid off, and possibly also so that the policy’s funds can provide an ongoing income stream for a surviving spouse and young children in order to pay their living expenses.

For most people, life insurance may represent just simply a way to provide cash for loved ones in the event of the unexpected. The death benefit proceeds would be paid out so that funeral costs and other large debts could be paid off, and possibly also so that the policy’s funds can provide an ongoing income stream for a surviving spouse and young children in order to pay their living expenses.

While these are certainly viable ways in which this financial vehicle can – and should – be used, the truth is that there are also many other ways that this important tool can be set up so that people can also make use of its many benefits during their lifetime.

Here are just a few examples:

First, when it comes to permanent life insurance policies, many of these plans can provide a substantial amount of liquidity in the case of a financial emergency. In addition to death benefit protection, permanent life insurance policies also offer a cash value component.

This cash value is allow to grow on a tax-deferred basis. What this means is that any of the gain on those funds will not be taxed unless or until the time it is withdrawn. This can essentially allow the money in that component of the policy to grow and compound over time by a great deal more than any type of comparable taxable account. [Read more…]

By Chip Hollingsworth

Abraham Maslow in his 1943 paper “A Theory of Human Motivation” in Psychological Review asserted that humans have a hierarchy of needs.  Maslow’s theory was fully expressed in his 1954 book Motivation and Personality. So what are your needs? Maslow’s work moved through the thinking that people have basic needs and that a person moves to a level of self-actualization or fulfillment; referred to as Physiological needs, Safety needs, Love and belonging, Esteem and Self-actualization.  So to move through the life chapter called “Retirement” one should begin thinking and planning much before that day arrives, about your basic needs and what life needs to look like to end well or achieve self-actualization.  Consider these seven questions:

Do I know how much I have in income producing assets and the amount I will receive from my pension/ annuity?  People who plan well, know the amount it takes to meet your basic living needs and what amount it takes to live well.  I suggest today you take an inventory or your financial net worth.  How much money do I have that can be used to produce income and how much will my pension or annuity be from my employer.  In the year prior to your retirement, if not sooner, begin adjusting how much you live on, to match what your pension will be when you retire.  Discipline yourself to save the difference in a cash account.  Do I know how much I need to live the lifestyle I desire?  Am I willing to live on less?  Am I willing to work longer to have the lifestyle?

What resources are available to me if retirement were to be now?  Consider that you may not be financially ready and that you may not have enough time to be self-supporting.  Explore the many services that social programs afford you.  [Read more…]