Who Can Access Your Finances in an Emergency? Setting Up a Plan

Thinking about financial planning in emergency situations can feel uncomfortable and unsettling. It’s not easy to consider situations where you might not be in control—whether due to an unexpected illness or accident, a natural disaster, or being physically separated from your home country—but having a plan in place can help reduce stress in the long run. Making sure you are able to voice your wishes ahead of time and involve trusted individuals to help manage your finances if needed provides security, reduces hurdles and confusion, and helps you maintain agency over your financial matters.
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Navigating Sensitive Conversations About Financial Planning

Discussing money or planning for situations where you might not be in control isn't always easy. Bringing it up may be perceived as expecting something bad to happen, or it might stir tensions about who should be involved in your financial decisions.

That’s why it’s important to approach these conversations in a way that feels right for you. Take the time you need to process your thoughts and seek support if needed. Acknowledge your feelings, and check in with yourself throughout the process.

Here are some ways to approach these conversations with care:

Recognize that this may be a difficult conversation. It’s okay to feel uneasy when talking about these topics. Managing finances in general, but especially in an emergency, is a big responsibility. Give yourself and others space to process the conversation at their own pace.
Choose a time that feels right. Bringing up financial planning unexpectedly or at a fun occasion might not be ideal. Find a quiet moment when you and your loved ones can focus.
Start small. If a full conversation feels overwhelming, begin by discussing one aspect, like who could handle bill payments in an emergency.
Consider cultural and personal perspectives. You may have traditions or practices that guide how financial matters are handled. Reflect on what makes sense for you, and acknowledge that different people in your life may approach these discussions differently.
Consider if external support is needed. While societal norms may suggest that a spouse, parent, or close relative should automatically be responsible, the right person for this role may not always be the person closest to you. This does not mean you do not trust those closest to you, but they may not be in the best position to take on the responsibility. Having honest conversations about who is best situated to support, and whether they feel comfortable stepping into this role, is important. If these conversations feel difficult or unclear, seeking outside support—whether from a professional, a community resource, or someone who can help navigate the next steps—can be helpful.
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Why You Might Lose Access to Your Financial Accounts‍

There are various situations where you might momentarily or permanently lose access to your financial accounts, including:

Unexpected travel or relocation. You may be away or separated from your home without access to essential financial tools.
Natural disasters and technology failures. Power outages, lost devices, or technical issues can prevent online banking and online wallet access.
A serious health condition or medical emergency. If you are hospitalized or otherwise unable to manage your finances, someone else may need to step in.
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Key Accounts to Review‍

Consider reviewing the following types of accounts and making a plan for emergency access:

Bank accounts: Determine who has access to funds, who can manage the accounts, and whether beneficiaries are designated.
Credit cards, loans, mortgages, and leases: Ensure that any outstanding debts, car leases, or mortgage payments can be managed in your absence. Consider setting up an authorized user or ensuring that key information is accessible to a trusted individual.
Retirement accounts, investments, and other assets: Assign beneficiaries and ensure a trusted person understands how to manage these accounts if necessary. If you own property, determine who should be responsible for decisions related to maintenance or payments.
Health insurance and medical benefits: Make sure a trusted person can navigate health-related financial matters on your behalf if needed. Assign who can handle claims, make coverage decisions, or access necessary documents in an emergency.
Utility and household bills: Make sure someone can step in to pay for rent, electricity, water, internet, or other services (e.g. streaming accounts, phone services, subscriptions). Consider listing all accounts and how they should be handled.
Safe deposit boxes, important documents, and tax information: If you store financial or legal documents in a secure location, ensure someone you trust knows where they are and how to access them. If something happens during tax season, having a plan in place for someone to access your tax documents or file your return may be helpful.
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Planning Ahead

To avoid financial disruptions in an emergency, consider these proactive steps:

If you aren’t already banked, consider opening a checking or savings account. Learn how to open a bank account here.
Start an emergency fund. Even small savings can help reduce financial stress in a crisis. Find tips on starting an emergency fund here.
Keep important documents accessible. Store account details, legal documents, and emergency contacts in a secure yet accessible place.
Designate trusted individuals: Identify who you would like to have access to your financial accounts if needed.
Set up a power of attorney: A financial power of attorney can allow someone you trust to manage your accounts in case you are unable to do so.
Review and update beneficiaries: Ensure that your accounts have up-to-date beneficiary designations to simplify asset transfer.
Communicate your plan: Have conversations with those you trust about their role in your financial emergency plan.
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Taking the First Step

It’s okay if creating a full financial emergency plan feels overwhelming. Start small by setting manageable goals that fit your situation. Whether it’s identifying a trusted person to talk to, setting some money aside for an emergency fund, or making a list of key financial accounts, taking even one step can help you feel more prepared.

A free MyMoneyPath portal account can help you organize your goals, track progress, and receive reminders and tips to keep you on track. Setting SMART goals in the portal can make financial planning more approachable, helping you move forward at your own pace. Sign up for your account today!

External Resources

Managing Someone Else’s Money – A guide from the Consumer Financial Protection Bureau to help caregivers and financial caregivers understand their responsibilities and manage money on behalf of someone else.
Planning for Diminished Capacity and Illness – A guide from the Consumer Financial Protection Bureau on setting up a durable financial power of attorney and other financial security measures as you age.
The Immigrant Family Manual – A resource from the Appleseed Network on making a financial plan for your family in case of forced separation or immigration-related emergencies.

‍Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered financial advice. Please consult a financial advisor for personalized advice tailored to your individual circumstances.