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Bringing Light to the Chaos of Death’s Bureaucracy

Finishing Well / Hans Scheil
The Truth Network Radio
May 11, 2019 8:30 am

Bringing Light to the Chaos of Death’s Bureaucracy

Finishing Well / Hans Scheil

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May 11, 2019 8:30 am

On the first day of creation, God said “Let there be light.” Just as Jesus is the light of the world, he brings truth and does not like chaos. Robby talks about going through the bureaucracy after a loved one's death, being the executor and dealing with their will and their affairs. There is a lot of chaos to go through in this situation, but hopefully Hans and Robby can bring some light to it all on this episode of “Finishing Well”!


Robby talks about his father, who had a clear plan for his life insurance. He told Robby a few days before he passed that Robby was the beneficiary and that the $10,000 benefit was to be used for funeral costs. This is not what ended up happening, as Robby’s father was wrong about the beneficiary. It was not Robby, but it was a trust, which meant the money had to go into this and then go through the will.  


Robby explains how hard this made it to get the money. It took him 3 weeks to get his father's death certificate. Then he had to start dealing with other stuff, such as his bank accounts and insurance policies. He even has to contact Social Security to pay back a check they made to his father after he passed. The life insurance policy was not available to immediately pay for the funeral costs like he intended. This is one part of the chaos that can be eliminated by simply looking at the policies regularly with a trusted agent.


Another way to stop some of the chaos is sitting down with your parents or in-laws and going through all of their insurance policies and estate plans. This will help to make sure the money goes directly to whom they intend it to, when they intend it to. The beauty of life insurance is that it can avoid probate if set up correctly. It gives your family members immediate money to take  care of your affairs.


Hans talks about the minimum every person should have in life insurance and what this covers. Even single people should look into life insurance; you will still have bills that are going to have to be paid after you pass. The base number for most people is going to be $25,000 but it is really going to depend on your personal situation.


Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on for free!


You can contact Hans and Cardinal by emailing or calling 919-535-8261. Learn more at

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You're listening to the Truth Network and Welcome to finishing well brought to you by Cardinal guy Certified financial planner belonged to Schild, best-selling author and financial planner helping families finish well over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started with finishing well well we have a very interesting topic for today show on finishing well certified planner upon trial. Try this one on for size. Bringing light to the chaos of deaths bureaucracy bureaucracy word may procure but Lupita just to take you back to Genesis for minute.

If you write back to the very beginning. You know the Jews really mean for years in the Torah.

This is a huge passage that very few's first few verses of the Bible, God is going to bring chaos into order and how does he do that and you might recall of the very first things he does on the first day of creation is, he says, let there be light, and you might remember that it's not the sun that gets created on the first day what gets created is let there be light) and he is bringing light into the darkness, which obviously Jesus is the light of the world, and I think you get the picture that Jesus does not like chaos right and for those of you experienced it and I would've thought before I was age 63 or four Harold that I would've experience of the level. Have I really you know I've experience my mother's death, experienced by the things that I never have been the the executor or the beneficiary or been through the bureaucracy that happens at death but oh my goodness on the I was just not prepared at a call for what was coming my way will you any just I knew it was coming and offered to help you with it in have helped a bit and is you is your attorney, what would we counter earlier many bureaucracies, your father's only been gone for about six weeks. Yeah, I think there is a in the bureaucracies that I never would've dreamed all come in. I just picture your normal day that you don't probably want to deal with on the same day or any given day.

Would you like to deal with the IRS and the so security administration and Medicare and you know banks and financial institutions and and brokers, financial state of North Carolina.

We have in the county government. The county government are yeah you can take life insurance Company, and how many we have to do planning and and so you know some of the shockers for me. You don't have Junior on your drivers license and dare you to see how that the daily decedent needn't is Robert Gilmore and your bringing me a drivers license.

It's is Robert Gilmore. But you're telling me you Robert Gilmore, Junior that that doesn't work for me. I and so the DMV is in there to, you know, the part that really my dad's wish in any spoke to we spoke on it three days before you know when he was still pretty sound of my dad, who is the beneficiary on your life insurance you are son okay what you want done with that, and I knew that he had a very small life insurance policies compared to the rest of his estate was $10,000 what you want me to do that. That he said I want you to use that to pay for the casket and the opening of the cemetery because he thought his plot already and I want to pay for the transportation down to Savannah where he wanted to go and all the stuff was supposed to be done with this $10,000 on dad.

If you only knew what what what was in store for that life insurance in only had the beneficiary listed as a trust. The didn't have any money that there was never opened up from 2003. So he did a lot of things right. He was trying to do right and everything and there are just some places there had had we followed that up further and just named you the beneficiary probably be by now there'd be a check here for $10,000 minimum. Depending on how things are set up on your life insurance or in your estate if you think people are going to be able to access your money very quickly.

All my goodness, it took nearly 3 weeks to get the death certificate back from the county's week we talked about the county was going to be involved only at the counties involved at mentor.

So before you can ever send off that certificate. Anybody to open the state or anything else you'd you've got to have the death certificate in order to go deal with his bank accounts.

You need letters of testament to how you sent testamentary testamentary to get those letters of testamentary. You gotta have a death certificate and you gotta make an appointment with the County to sit there and show them the will and all that stuff so is another way to get the appointment and you know you the next thing you know you're here for five weeks into it and then. Oh by the way, the Social Security administration and made a deposit into his account and we come to find out that they don't pay you the month that you pass away, they take that money back okay so were we talking about all this. Today this is you know the life insurance and estate planning chapter and worry if you find them on the website. I'm a financial planner and I make my business side of sitting down with people really at any age, in trying to make this process more seamless or easier. There's always problems incidences so so you you're not alone in this robbery, but I want our listeners to first of all think about okay so are you the kid. Are you the person you know in the situation and my guess is if your parents are still alive or your in-laws are one of them is you need to think about this in terms of you being in Robbie's shoes and need to go take care of things. And if your parents have really not let you stick your nose into their business or perhaps if they haven't done that with many brothers and sisters as if somebody needs to sit down with him and find out where all the stuff is find out how it's all laid out over here and have amassed potentially worse than Rocky's. Yeah, I mean my father had done some other things extremely right so we didn't have the chaos of property like oh my goodness how we can get at the crown and we didn't have that situation, but what it originally intended became more an hour close because you know what you talk about all the time is when you sit down with the content but bring in all the stuff so we can really understand it and understand these beneficiaries and and really get because my dad I know three days before he passed away thought that I was the beneficiary on his life insurance policy but I wasn't when I was because I had a hedge.

I was asking. Use the beneficiary in the IRAs on the life insurance and you called.

You talk to the end.

So when all this means to our listeners out there and we thank you for listening today. He is first think about it in terms of your parents or your aunts and uncles of you being in Robbie's shoes, trying to make matters right and just finish up close up a person's estate. First, could open it before you can close and get things distributed according to their wishes, but then you need to learn from that Robbie certainly has and then you know from that you're gonna plan for when you're in that situation, and none of us know when the Lord's gonna call us and we need to then get with our kids or if were in her 50s or 60s and you feel it's a little early to do that you need to do this planning. Anyhow and perhaps tell them what you did and set up so that your affairs are set up in such a way that this is just going to be a seamless process. Yeah, and if it you know were talked about at the beginning bringing light into the chaos of death, bureaucracy and you know I had no idea that God was going to bring me this book, I guess, in 1670 months ago into my life. You know the complete cardinal guide to planning for living retirement, which for me at the time seemed ludicrous because of no work. I tried tireless as they had to do with me all my goodness what I needed to know what was in that book and whatnot but the what the next 12 or 15 months, my life would be like.

But bringing light to darkness comes from that book, which again cardinal is the website you know that is the host of the show along with Hans and you know in cardinal will listen if you want to get a copy of the book 1st volume getting on Amazon. But if you'd like to read, and specifically the life insurance and estate planning chapter you go to our website. Cardinal under the seven worries tab you go to life insurance and estate planning. You can download both chapters under life insurance. First, in the original book and the workbook then cautioned anything and so and then secondly if you'd like to see the whole book. If you just send me a message on the website, just that you listen to the show in you'd like a copy will be glad to send one out to Atkins at the time I saw known. Don't know where this connected to my life. Not even processing that oh my goodness, you know, I there's so many people in your life that is exactly what and and this is a different state and and life insurance, something I never would've thought was an issue in my dad's life. You know what you talk about their so that people don't have the chaos of property you note specifically small amounts to mitten because I found out those things that really commensurate how you miss of the beauty life insurance number one is that avoids probate that you talk before the only time you never heard of probate is you that that's kind of a fishing lure as international as is Carolina rig. You know that the plastic worm probate all what you been talking about is probate and insist institutions and bureaucracies in the life insurance business is a beautiful thing you got beneficiaries and money gets paid directly to your name, beneficiary, and that happens much before any of the will is going to get settled through probate so it creates immediate funds that are available to your family to take care your affairs and perhaps to take care of themselves that because at this point there to be need to take off work because of the sit down of the county and go through what it takes to get those letters of Testament and whatever testamentary those that take time off to go make that stuff happen at and it cost money. I mean it's real how it is.

And I think you and the second part of the show were to talk a bit about how much life insurance do you need in retirement is certainly not as much is when you're working, you have small kids and you have people to educate, but it's certainly more than you think it is to you been through an experience like that. Now that I mean it's real it's coming, it's going to be fast and oh by the way, you note the bank's gonna tie up or did in my case, they do in everybody's been tied up my father's bank accounts and over three weeks while they try to got to get straight with Social Security because it made this deposit and it was nothing I could do to change that I'd fortunately because my father made other arrangements. I wasn't desperate for the money, but if I had been it. It'd been in the been on like donkey Kong is I can't touch it with a 10 foot problems So security is within you as we come back here much more on bringing light to the chaos of death, bureaucracy, Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group.

Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRAs so security in care and long-term care. Just go to Cardinal and contact Tom to schedule a live recording of finishing well at your church Christian or civic group contact contact Cardinal that's Cardinal welcome back to finishing well today was certified financial planner Hans Shah were talked about bringing light to the chaos of death bureaucracy specifically in a one of the things that really I only want to think about what it would have been like if I was struggling to find money in this particular situation and where life insurance really you know can bring some light into being able to take care of things that are coming come at you really, really fast.

You know, you immediately have a in my case, a grave that had to be open.

That was $4000. Just open up the box, you know, because my father bought the cemetery there was caskets.

There were pastors that needed to be paid in an arms oxidation, transportation and and you know dinners and all sorts of things that were going on is all this family came in from all over town. You know, and all of a sudden there was a huge you know I thought at a time and time again Ashley constantly touches that boy you know when you're in that moment is not the time to be short on money because it does seem like you I've never seen such a need for things all at once that I you know when the last thing you want to be worrying about at times money in the in of the weeks following.

It's now been about six or seven weeks of what I wanted talk about is a bit is first of all, do you need life insurance and retirement mean there's there's plenty of folks out there that write books and speak and write articles that the answer to that is, they give is know they say you kids are grown you through working your pension so that come in your savings is there. There's many retirees that feel they only and so I'm not in the sit here on the show and try to talk into it I just can give you my perspective is is is that if you're a married couple. You can have all that deal with. You just mentioned final expenses and you going to deal with the fact that you're now going to go from two Social Security checks to want the smaller of the two Social Security checks just goes away. So if you're the one with the big check and your spouse dies, then the spouse's check goes away with her if you're the one with a smaller check in your spouse with the bigger check dies.

You're now your checks can still go away is smaller check and now you can get there check either way this can be a loss of income.

So that's the first thing for a married couple now if you're alone. Is your father was, and you say what I need life insurance for will first offer those final expenses and if you look in my amine which you know I've put in this example on page 88 in the workbook and again you can download this chapter Cardinal I just put this down as a minimum of me for the funeral $10,000 attorney fees for estate settlement.

I put down $2000 as a minimum this for a small state that and certainly does not get you very far with a larger state. But if you have a larger state. Ultimately, the attorney can deduct from the estate executor thousand dollars mean it just a lot of times people were small states executor doesn't get paid anything. What were you telling me that your attorney told you that stated North Carolina last he said a minimum of three is a maximum of 5% of the estate to be paid to the executor, but again you know that if the executor is in a situation was taken off at lunchtime for work and all that stuff you know it takes a long time. From what I'm understanding and I'm just beginning the know they say it will be a year before this things finished at and and so if I'm waiting that long and I and I had to take off all his work in order to get that accomplished. You know that be a difficult situation.

So I just put $1000 in here so there's some small payment that could be very necessary and then I put 6 to 12 months of income replacement $12,000 piano that up calls for a minimum of $25,000 and you say what we need income replacement for, if I'm single if I'm the last one to go.

I mean, your house is not can be sold immediately in your your house if you if you get a car payment and all the insurance that you is kind of interesting, and how every one of my dad's policies premiered in March or April. It okay send them you don't pay taxes they come due in. You know, a condo maintenance fee and pay the heat and light bill and meet their expenses of the whole idea of having an income for a short period of time, or an adjustment income for spouse so anyhow I came up with in my book just as a minimum $25,000 now. I think if you're in your 50s or 60s and you have some substance about which are to be passing along perhaps even more. And a lot of folks look at the answer was $25,000 can do well okay, if that's your reason for buying nothing, then a $25,000 is going to be very much needed any help in my book. It gives several examples in Britain have a lot of folks say, well, I can buy life insurance you can buy it you know in this book all the way up through age 89 I mean we offer in all 50 states is just Columbia. We can write people up right over the phone. You also if you have health conditions and gives prices in this book age 55 age 77. Want to get into too much detail here. We can we can write policies for millions of dollars. Don't don't think what I'm talking about 25 or 50,000 I'm just speaking to the average folks and I want to also speak to the fact that Anna care who you are.

It's going to be wonderful for your family. If there's a check that goes right when it's needed. It completely avoids probate all help look through the policy and I'll be there for your family or my firm will be. I may not lasting longer than you do speak to that a minute yeah that that life insurance can be paid a lot quicker than what I'm experienced because of the complications that that happened because we hadn't done our homework and we didn't have the right people in place, you know, it may be two months before we see that particular check, but normally when the people doing business with you. Actually, a call to the funeral director will explain well yeah it is it so we talked about the people that are doing business with me on the list. Talk about.

So if you come in to see me now and you either buy new policy. You simply bring your old policies into me or you bring your parents in with their older policies or you just bring them in on the look through those very first thing on the to do on life insurance policies and the annuities that they have in any IRA accounts under check all the beneficiaries to make sure they're up-to-date in their worded exactly the way you want that which you'd asked me to make reference to. I've done this for several companies that were I'm handling the insurances I'm gonna call them and notify them that the persons passed away okay and I'm gonna answer this every time them and asked them if they have a way to pay claims based upon phoning the funeral home obtain on smaller policies. Even some of the larger ones they can get a copy of an obituary. They can talk to the funeral director and I've had life insurance companies that will do that and then once they verify that the beneficiary is the beneficiary is they'll release payment, but the very least, we just need to send in a death certificate and it that makes a huge difference plus on the policies the people like my death case where he wanted to make sure that his last stuff was done. Casket most of the things he could've done because it he was terminally ill under hospice. There's a provision to do a terminal any of the modern policies have terminal illness provisions in where you can disprove that you terminally ill and you get some percentage of the death benefit paid out to you, will you still living for last expenses or for any other expenses that you and have critical illness which is less restrictive.

It just means that you had wanted is listed very critical illnesses like heart attack or stroke in you can get in a percentage of the death benefit and have chronic illness writers that will pay if you're chronically ill will pay some percentage of the death benefit so there's there's ways to access that money before you actually passed away as well and end so you can see, to some extent that I hope you get that is not it's not just the money that's the issue is having a way to figure out how to get the stuff done which has to do with many counselors plan succeed.

Having somebody for sans understand, but it you need somebody in your corner to say hey that knows this stuff works with it all the time because I can assure you I nobody's trained in dealing with death 101 on the need it. It's really helpful to have somebody there that is walk through this stuff constantly and be able to work with. Well, yeah, and also make clear that life insurance is for a lot more than just what we've talked about this $25,000 if you want to leave something to your church and you want to do it in a very tax efficient. You want to do it in a very expedient way after your death.

You can use line should you make them the beneficiary if you want to make a bequest to a niece or nephew when your grandchildren are the collection of your grandchildren that you want to give this to your university or life insurance is just completely bypasses the probate process and as long as there's a legitimate claim on the policy and I take the stuff personally so if somebody has somebody that's passed away. You need help with this stuff for their about to pass away or whatever. Listen, I will help you. You just give me a call. You go to Col. find me and I will be glad to look through all the paperwork call the insurance company and help you as I want to facilitate this process. I want to get the families the money that they're entitled to, and I also want to convince the people that are listening to go out and do something about this right right, which is known to have that hardest dish discussion with your parents are with your wife and face made it up like wow we we really need to sit down with attorney and get these documents in order to find out who are beneficiaries are. Make sure that that that we not put this on our kids that oh my goodness, what of what a storm will come on them because the bureaucracy is set up for this, and they have their plans and what they want to do with your wealth. We have an attorney write in our office so I can guide this whole process for him a financial planner in by living with so many clients and helping so many clients that are in the experience we become pretty good at the planning aspect of getting people ready for this.

When it happens. Well, we ought was to have more show than time so you have to catch another time with more on the subject. Thank you for listening to finishing well, a certified financial planner Hongqiao again brought to you by Cardinal don't forget the guide. After Cardinal Cardinal again you get all these chapters in the book are there at the seven worries tab or just contact Hans Leavy.

There's nothing like having a friend when you're in this situation.

Thank you for listing. Thank you. We hope you enjoyed finishing well brought you by Cardinal visit Cardinal for free downloads of the show or previous shows on topics such as Social Security, Medicare and IRAs, long-term care and life insurance, investments and taxes as well as constant best-selling book, the complete Cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows when you get Hans book go to Cardinal if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word.

Once again that's Cardinal Cardinal

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