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.
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.
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.
There is a new scheme – not to be confused with scam – on the horizon involving probate courts. Say you’ve lost a family member or loved one, and you are in that person's will. Soon after the death, you get a call from someone saying his company has money for you. He claims that, as an heir to the deceased, you can receive the money right away. All you have to do is sign over the will to that company. These companies hire runners to go to the courthouse to see who has died and what family members are listed in the will. They then offer to hand over the money much quicker than the heir would normally receive it, in return for 70 percent of the amount. Surprisingly, people are signing up for this in droves and giving away most of their inheritance. If you are approached by one of these companies, run the other way. If you are in the will, you will get your money. And you’ll get it all if you are patient.
The Consumer Reports Money Advisor reports that 60 percent of people have no will. It’s one thing if you have no children and you don’t have a will. But the number of people with children who have no will is outrageous. It doesn’t matter if you have no assets. Having no will means that you also have no control over what happens to your children when you die. The courts usually decide who will raise your children. So please get a will and plan out what will happen to your children if you are not around. Talk to people you would consider and ask if they would be willing to be your child’s guardian. If you have a very complicated situation, such as a blended family, you may want to hire an attorney that handles wills trusts and estates. Consumer Reports says that you should always hire a lawyer. But Clark thinks computer software programs are just fine most of the time. One really easy one is “Will Maker.” But get past the uncomfortable feeling that comes with talking about death and take care of the family you may leave behind.
What happens to your kids when you die? If they are minor children, and you die without a will, the state decides who gets your kids. What if you don’t have kids but you have a lot of money and no will, the state gets that too. Only about four in 10 adults have wills today. That means there are millions of people in the U.S. who have made no preparation for who is going to raise those kids. If you’re not married and you have no assets, don’t bother with a will. But if you own your own home, you want to do a will. It only takes a few minutes, and there are a lot of Web sites out there that help you. Try buildawill.com and legalzoom.com for starters. Also, “Will Maker” is a program available through nolo.com. We’re all going to die someday, so face it and make preparations. And, put the will in a place where you can easily access it, and tell others where it is.
Mass mutual is making tons of money, getting people to sign up for trusts for dogs and cats. People are paying $500 for each trust, which ensures that a dog or cat is well taken care of after that person dies. It includes dog walking, a place to stay and grooming. At the same time, many people have made no arrangements for their own children. Clark is stunned by the number of people under age 21 who have no will for their kids. If you don’t draw up a will, the state will decide who gets to raise your kids. Spend the $30 or $40 to do a will online and you’ll feel so much better. Clark’s favorite program, Will Maker, is available at nolo.com.
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.
