If you’re a regular at pfblog, there's a good chance you're also the financial wizard in your household. But have you considered how your less financially-savvy significant other would fair if tragedy were to strike, rendering you unable to tend to your family's finances?

You’ve likely already addressed the basics like life and disability insurance. But here's another thoughtful thing you can do for your loved ones -- and the only cost is an hour or so of your time...

Create a Personal Finance 'Users Guide'

After watching what my Mom went through after my father passed a few years ago, I came to this realization: Lacking written instructions, it can be very difficult for the surviving spouse to pick up the financial pieces. So after helping Mom get back on track, I decided to create a personal finance users guide for my wife. If you want to do the same for someone you love, here are some of the things you may want to address...

1.) Where to find things in your files / computer / safe deposit box
2.) Important phone numbers for your attorney / accountant / brokers
3.) A spreadsheet of your assets with amounts and contact information
4.) A list of documents that will need to revised after your death
5.) Your suggestions for how your spouse manage money after your death (types of investments, etc.)
6.) Who they can trust, and who / what to avoid so they do not get ripped off
7.) How to access your on-line accounts
8.) What they need to know about your IRAs / pensions / social security (now and in the future)
9.) You may also want to include your final wishes

Here is a portion of what I created for my wife...

Government
 Check with social security, there may be a small death benefit
 You are eligible to receive a “reduced” social security payment at age 62 – Experts recommend to take reduced amount (because when you wait, it takes many years to breakeven)
 You may be eligible for a portion of my social security (check with social security)
 IRA’s begin mandatory distributions at age 72.5 – Distributions will be taxed as ordinary income (You can begin to take voluntary distributions at age 59.5) Note: general rule is to keep tax deferred money invested as long as can
 Social security is not taxed for low incomes – There is a chance that some or all of our social security will be subject to income taxes
 Our IRAs are 100% funded by pre-tax dollars – This means all distributions will be taxed as ordinary income
 Medicare currently kicks in at 65 – You get part A for a minimal cost (taken out of your social security check) – You will want to purchase additional Medicare coverage (part B & C); You need to do your homework here

House
 Get deed changed to your name

Cars
 Owners manuals spell out service requirements
 Every 30K miles is important service for (our brand of cars) (“Replace” is key word vs. “inspect”)
 Rotate tires every 5K miles; oil change approx 4K or 3-4 months depending on mileage / usage
 Probably want to stay with new cars (trade every 5 years)
 Honda and Toyota are tops in my eyes; Something like a Camry or Accord are good choices; Try to avoid purchasing a car just prior to a major update

Additional Notes
 1st year of death can still file taxes as joint
 The following year your taxes will go up because you will file as single
 Change any charge cards, bills, etc. to your name

P.S. For Valentine’s Day, don't forget the roses and candy :)
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