What happens to your accounts, usernames and passwords when you die? A recent Time article titled "How to Manage Your Online Life When You're Dead" addresses this thoroughly modern dilemma.
DeathSwitch.com is a service that repeatedly prompts you for your password to make sure you're still living. If you fail to reply to multiple prompts, the system will then e-blast out a message you've pre-composed (containing usernames, passwords, special messages to loved ones, etc.) to let others know of your untimely demise!
But what if you sign up with one of these services and they go bust? What becomes of your sensitive info? There is no clear law in the United States to govern this. In similar instances, user info has even been sold to make creditors whole!
Obviously, there's no perfect solution yet. If you're a braniac, there's a great business idea here, Clark promises you.
And how does the consumer champ handle this dilemma? He's chosen to go a very analog way. Clark has given one of his lifelong friends an envelope that has all his usernames and accounts in the event of his death. If his friend is not trustworthy, he could be broke in a minute!
One unexpected consequence of the recession is that some families can't afford to bury their loved ones.
The Los Angeles Times reports that bodies are going unclaimed in record numbers at morgues because families know they can't afford a burial. In a case like that, many jurisdictions will do a cremation at taxpayer expense.
Meanwhile, The New York Times reports that home burial is becoming increasingly popular at family farms and other large tracts of private land. In most jurisdictions, home burial is permissible as long as you follow the regulations. The typical cost is a few hundred dollars.
Obviously, these are the two extremes of how the recession is shaping end-of-life choices. But there is a reasonable compromise: Join a non-profit funeral or memorial society if there's one in your area. Funerals.org is a clearinghouse where you can search by state.
As Clark has said in the past, you get to use the group buying power of your fellow memorial society members to greatly reduce the costs of a funeral with cremation or burial.
The consumer champ has been a member since the '70s. Through his membership, a simple burial with a casket is $1,950 vs. $7,500 for a comparable service. Cremation is in the $900 range.
On April 1, Clark saw a Washington Post article that he thought for sure was a put-on.
In our continuing saga of bailouts, the funeral industry is now asking for its own bailout. "We recognized that there may be a situation where a lot of folks who were displaced or unemployed might need some help in paying for their funerals," a lobbyist for the National Funeral Directors Association said in the report. "We had some preliminary discussions about providing some stimulus payments to the states [for funerals.]"
But this is no April Fools' Day joke.
The funeral industry is crying the blues because they're being hit with a double-whammy in these tough economic times.
First, death rates actually go down in a recession -- despite all the anxiety and angst people feel. So many premature deaths are road accidents, and when people don't have a job to go to (or money to spend), they tend to stay off the roads.
Second, people are shelling out less money for funerals. They're trading down in terms of caskets, floral arrangements, food and more.
The truth is you can reduce the cost of a funeral by 75% with a little pre-planning. In most states, you can join a non-profit memorial society that entitles you to group-buying power. That means you get a lower cost for your services.
For example, Clark's membership means he would pay $1,900 for a full funeral and burial (vs. the average cost of $8,000) or $995 for a cremation.
A lifetime membership to a local non-profit memorial society usually runs somewhere between $30 and $45. Log on to Funerals.org to find one near you.
The debt collectors are behaving badly again. This time they're hitting up surviving family members for money that's owed by the dead!
The New York Times reports that some collection agencies specialize in this somewhat morbid pursuit. Collectors even receive "sensitivity" training to deal with grieving relatives. They'll speak in hushed tones on the phone like a funeral director and refer you to a legitimate grief counselor if necessary.
In most cases, you have no legal obligation to assume the debt of a late spouse, sibling or parent. But the collectors will never tell you that.
The only states where there is a possibility that a surviving spouse may have some responsibility for a debt are "community property states" -- Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
In such states, an executor/executrix or administrator (in the event there is no will) may be responsible for assessing the estate to see if there's money to pay out to creditors.
But in general, if you get a call from these slimeballs, know that you likely don't owe them a penny.
RIP-OFF ALERT: Most of us do not tell our loved ones what we want at the time of our death. Is it cremation, burial, a fancy casket, a cheap pine box? We may try to bring up the topic, but our loved ones may not want to hear it because it's painful.
The funeral industry has gone through major changes in last 2 decades. Large national chains like SCI and Stewart have bought up ma-and-pa businesses, yet they haven't changed the old names of the funeral homes. That way they give the illusion of still offering the personal hometown touch. The Funeral Consumers Alliance of Greater Kansas City surveyed 74 funeral homes in their area to compare prices. Prices ranged from $3K to over $7K for the exact same services and products. The most expensive homes were owned by the major funeral chains. Curious about what inflation will look like in 2040? Go to a chain funeral home, Clark says!
Of course, you can avoid costly funeral arrangements at the time of your death by planning in advance through a nonprofit memorial society like Funerals.org Clark has been member for 31 years. You get the benefit of group buying power for prices that are at a 70% discount. If you join, be sure to tell your loved ones and give them the necessary paperwork you've filled out.
Most people, however, won't join a memorial society. So if you're faced with a sudden death in the family, you may want to contact EverestFuneral.com. For a fee of $500, they'll negotiate the best prices on your behalf. That can amount to a savings of thousands of dollars. Finally, be sure your loved ones know about your organ donation wishes. A new study finds that more than 90% of Americans want to donate their organs, but only about 25% are signed up to do so.
Here's a deadly topic that people don't like to talk about -- planning your funeral arrangements in advance. Clark became a lifetime member of a nonprofit memorial society back in the '70s. Is that what you'd call advance preparation or great pessimism? He was in his 20s and already thinking about when he wouldn't be here! The memorial society gave him access to group buying power to get a great deal on cremation or burial. Being a member will cut the costs of your disposition by about 75 percent. You simply pay a lifetime fee of around $25-$35 that varies by state. The memorial society will contact a funeral home to make arrangements at a low price. Be sure to tell your loved ones you've joined and give them access to the paperwork so they know how to proceed when the time comes.
There is an alternative, which is to pay in advance for burial arrangements. But Clark is against this option. The Washington Post recently reported on a cemetery in Maryland that catered to pre-need clients. But the operator stole the money -- instead of putting it in escrow -- and then sold the operation and moved to Florida. The new owners didn't know anything about the existing customers and couldn't honor their contracts when they did pass away. So the families had to pay a second time. That's why Clark advises you not to pay in advance, but rather to just plan in advance. Funerals.org is one site where you can join a memorial society.
What can you do if you haven't done any planning and you're in sudden need of a funeral home? Many homes have gone through roll-ups and been bought out by huge national chains. But the homes will still retain the old family-operated names. Unfortunately, economies of scale do not apply here. In fact, national chains come in and raise the rates astronomically. So try to do some comparison shopping (as hard as that may be at the time) and find a locally owned and operated funeral home. That should run you about a 1/2 to 2/3 off the cost of the giant monster mega-chains. Remember, you can't tell from the name outside, so you must ask.
There's a lot of debate about when to go to a lawyer. The truth is that in some situations they're necessary, and in others they're not. Take the situation of making a will. Most people don't have a will or they have one that's grossly outdated. The danger in those situations is that the state may decide who gets your money, or your kids could end up with that relative who is your worst nightmare when you die. People are usually reluctant to do a will because they're either afraid of death, afraid of lawyers or both! One simple way to do a will is with NOLO.com. This legal self-help service features the highly respected WillMaker software. This may be a good option if you have simple family arrangements and aren't filthy rich. WillMaker asks you questions and then pops back answers as you make your will. If you get confused, stop and see a lawyer. Or proceed with WillMaker and then pay a lawyer to review the will you create. But you definitely want to hire a lawyer if you have family members who will squabble over money, or if you have any kind of complicated family arrangements. Ditto with divorces. In some states, you can obtain a divorce yourself by using a kiosk at a courthouse. This may be a wise choice if there are no assets to fight about and there are few debts. Just be sure to hire a lawyer if there are custody or financial issues.
Lawyers get angry at Clark whenever he talks about this topic. The Texas Bar Association actually got the state legislature to make it a crime for Texans to purchase a NOLO book. NOLO got so much publicity in the process that their sales skyrocketed elsewhere. On the other end of the spectrum, Arizona is one state that's very progressive and where you don't always need a lawyer. Likewise, paralegals in California will prepare documents for you to file at a courthouse. Just for the record, Clark is not anti-lawyer. You just have to be Clark Smart about when you really need one.
Do you want a free pass to financial trouble? Try being among the more than 50 percent of Americans who does not have a will! In a surprising twist, Forbes recently revealed that 1 in 3 wealthy Americans doesn't have a will either. What's going on, people? Clark wants to guilt everyone into having a will. Did you know that if you have minor children and don't have a will, the state can take your kids away at the time of your death and decide who gets them? They could go to a stranger or a relative who can't get their life together. Likewise, the state can decide who gets your money if you die and don't have a will. It could go to a family member you don't like, while your spouse may only get 10 cents on the dollar.
If you made a will years ago, you may need to dust it off and update it. You can do this yourself if your financial situation isn't too complicated. You can also go to a site like LegalZoom.com or try the highly respected WillMaker software. But you should go to a specialist if you have substantial money to protect. Retirement savings really need close attention. The beneficiary designation on your 401(k) or IRA accounts will trump whatever you have in your will. So check those designations carefully! One final note: California may be the exception to the rule that living trusts are not useful and should be avoided. That's because the Golden State has a very corrupt probate system. Some lawyers have even been able to arrange guaranteed revenue for themselves as a percentage out of someone's estate. If you own real estate in California and live elsewhere, you may want to hold it in a trust to avoid these corrupt probate courts.
The fact that we're all going to die is an uncomfortable subject, but it's one Clark thinks is periodically worth discussing. The reality is that most people pass away without telling their family what should happen at the time of their death. This oversight puts loved ones in a "mission impossible" scenario where they have to consider funeral arrangements while coping with the emotions of bereavement. Unfortunately, the funeral industry has figured out how to make extra dough during such situations. But did you know that by joining a funerary or memorial society like Funerals.org you can save up to 75 percent off? You simply pay a fee and make arrangements in advance. Some people may think that talking about this topic is somehow not respectful of the deceased. That's part of the psychology of field -- funeral homes profit off making it "bad" to talk about money at such a difficult time. But by planning early, you don't force your family to play a guessing game. And you also save money for your heirs.
Clark knows that most people won't ever get around to joining a funerary society. So he also recommends visiting EverestFuneral.com to help save money with funerals. With Everest, you can hire a concierge to negotiate on your family's behalf with funeral home directors. Or you can simply pay $30 and they'll do local price comparison shopping for you. On a related note, The Boston Globe reports that going to a home owned by Service Corporation International -- the biggest funeral company in the world -- will cost you more than going to an independently owned one. The independents charge up to 25 percent less than SCI establishments. Finally, there's always the option of organ donation to save a buck. Clark plans to donate his vital organs at the time of death to those who are in need of replacements. As part of that arrangement, his body will then be cremated free of charge. Clark says that if marveling at the fact that he's willing to take his thrifty ways to the grave is what it takes to get you to investigate some options, well, his work is done!
You might not think you’d hear about Anna Nicole Smith on Clark’s show. But as he heard more about this story on every television channel, it got him thinking that her story helps illuminate the need for a will. Smith had no will. As a result, people are fighting over her daughter and, therefore, her money. It’s going to cost the taxpayers thousands of dollars as this dispute plays out in court. If you are married, or are married with kids, you need to have a discussion with your loved ones and prepare a will. It takes about 15 minutes with the software program, WillMaker, and will save your family huge heartache. Also remember that the beneficiaries you have listed at brokerage houses will trump those you have listed in your will. So, check that stuff every other year. If you have your first wife listed as your beneficiary on your 401k plan, for example, she will get your money, even if you have a new wife who is listed on your will.
When Clark’s father died, he had no idea how to be the “executor” of his father’s will – something his father had assigned to him. There was so much paperwork involved that he had to get an extension from the IRS before he filed it. Death is a tough topic. It’s hard to believe we won’t be around forever. But your children are not mind readers. They need to know about the insurance you have, the accounts you have and any other information regarding beneficiaries and inheritances. Clark recently found a great tool in Prevention Magazine that helps you catalog it all and pass it along to your loved ones in an organized fashion. In fact, the booklet is called “Putting Things in Order,” and you can find it on any book site. It’s a great idea for your parents, but it’s also a great idea for you. You should also consider making a will, especially if you have children. If you don’t specify in a will the name of the person you’d like to take care of your kids they could be turned over to the state. Do you really want that? Find out more at nolo.com.
People really don’t like talking about death. It’s an uncomfortable topic and, because of that, it never gets discussed in families. The funeral home industry capitalizes on this. That’s not to say there are not good people in the industry. But consumers end up spending a fortune on last minute arrangements because they never made plans for loved ones, and funeral homes can charge whatever they’d like. Now, you can ask to see a price list and the funeral home is required by law to show you one. But you can get much better deals if you purchase a casket or urn ahead of time. The best deals come from a non-profit funeral society, which you can join anytime for a one-time fee. These organizations get a group discount on items and they allow you to buy exactly what you want. People typically save 80 percent this way. That’s a lot when you consider that the average funeral costs $8,000.
When a family is scattered throughout the country and a loved one suddenly dies, the process of planning a funeral and getting everyone together can add severely to the trauma. Clark has always been a fan of memorial societies that allow people to plan ahead of time for their funerals and save people about 70 percent. Now, there is another option. It’s called a “funeral concierge” and it’s already going on in Canada. The service used there, Everest, is coming to the States and will open its first service in Houston. It costs a decent amount to hire a concierge, but caskets are discounted and the convenience is priceless in times of such heartache. To join a memorial society, go to funerals.org. And we’ll keep you posted on what’s happening with Everest.
The latest hot export item is discount coffins. Apparently China makes very high-quality coffins and they cost a fraction of American prices. Funeral homes charge even more for coffins because they know you sometimes need one in a hurry and are vulnerable already. Right now, there are a series of lawsuit against the funeral industry for selling overpriced coffins and “price-fixing.” The average American is now paying $6,500 for funeral expenses and that is before the cost of the coffin. The best thing you can do is join a memorial society, which offers reasonable funeral expenses because of group buying power. And consider buying a coffin on your own, instead of saddling your loved ones with it in the event of your death. Look at the Chinese-made coffins, or consider checking out the supply at Costco Wholesale. The company now sells coffins at a huge discount.
Clark talks often about the importance of creating a will for yourself. Many times, people put off doing wills because thinking and talking about death – especially your own – is not pleasant. Also, many people don’t want to spend money on an attorney. But you don’t necessarily need an attorney to do a will. There are several programs out there that allow you to do it yourself. Clark has spoken very highly in the past about “Will Maker,” a Quicken product sold by the folks at http://www.nolo.com. The complete title of this product is called “Will Maker Plus 2004,” and it’s very easy to use. But Clark often hears complaints from people in the legal profession who say these products aren’t as thorough as using an attorney. They have said Clark is not an attorney so he doesn’t know. So, Clark had to laugh when he read a story in the Wall Street Journal that compared various will making programs. The Journal bought four of these programs, prepared wills with each one and then took them to a legal professor for review. And the most complete of the four was “Will Maker!” It costs $50 or less and composes wills “just right,” according to the professor, who was from the Quinnipiac University School of Law. Now, if you have complicated circumstances such as blended families, you may want to see an attorney that deals with wills, estates and trusts. But if your situation is more simple, you can go to nolo.com and buy “Will Maker” to do the work for you. s program for not very much money. Another popular program is “Legal Zoom.” It is about twice the price of “Will Maker” and the professor didn’t like it at as much. But do something about getting a will done. The alternative is to give all of your money to the state and nothing to your children. That’s what happens if you don’t create a will. The state gets to divvy it up and your loved ones get nothing.
