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Prepare for the day when someone else will need to manage your affairs
Would you like to give your family something they’ll appreciate a lot? Even though the gift won’t mean much until later?
You can leave money, investments, and real estate to your family, of course, but there’s another gift you can give them – the information they’ll need to manage your affairs when you can’t.
Suppose your spouse is gone and you develop dementia or pass away. Would your family know where to find your important papers? Would they know who to ask whether you have life insurance or a retirement account? Would they know the passwords to access your online accounts? Unless you’ve shared this information already or put it in a convenient place, they probably won’t.
When clients do advance estate planning with our firm, we provide forms to capture that information. If clients take the time to fill out those forms, their loved ones will have a much easier time when mom or dad can no longer manage their own affairs. There’ll be much less of a burden on the kids when they’re already going through a difficult time.
Here are some of the things you might want to write down and share with at least one key person in your family.
Information on Where You Keep Important Papers
To the extent possible, keep your important papers all in one location – a filing cabinet, a home safe, a bank safety deposit box, or wherever. Organize them so it's easy to find whatever is needed.
If you can’t put everything in one place, consider creating an “inventory” of important papers. We give our clients a chart to fill in showing various kinds of documents, along with a space to write in where each document is located.
These documents might include: wills, trusts, powers of attorney, healthcare representative forms, life insurance policies, funeral arrangement contracts, homeowners and auto insurance information, bank account statements, investment and retirement account statements, credit card information, vehicle titles, real estate deeds and mortgages, loan paperwork, copies of Social Security and Medicare cards, copies of health insurance cards, copies of driver’s licenses and other identity cards.
Information on Key “Helpers”
This is a list of professionals you’ve worked with, like your attorney, banker, accountant, investment adviser, pastor, doctor, insurance agent(s), and funeral director. Be sure to include their phone number, address, and email if you have it.
Information on Family and Friends
Are there people who should be contacted if something happens to you? Would they be disappointed or hurt if they were left out? If so, make a list of their names, addresses, phone numbers, and email addresses. You might even indicate whether they are family members, friends, co-workers, or whatever.
A “Who Gets What” List
If you want certain personal items to go to specific people when you pass away, make a list of those items and who they go to. This does not take the place of a will or trust, but it can be used to express your wishes regarding what’s called “personal property” – things like furniture, jewelry, tools, guns, etc.
It’s a good idea to sign and date this list. The list is often referred to in your will or trust as a “Personal Property Memorandum.” You may want to label it that way.
Information on Passwords and Online Accounts
Putting this type of information all in one place can be a security risk, but it can be helpful to you and your family when you can no longer manage your affairs. There are websites and software where this information can be kept if you don’t want to do so on paper. The electronic storage options normally have security measures built in. Share this information only with someone you wholeheartedly trust.
When you’ve prepared each of these lists, put paper copies in a binder or electronic copies in a secure “folder” on your computer. Tell a trustworthy person who will be managing your affairs someday where the binder or folder is located and how to access it.
This overview is provided as a public service, not as legal, financial or tax advice to any specific individual. Be sure to speak to a qualified attorney, financial adviser or tax specialist who can answer your questions, analyze your goals, and give personalized advice.
Michael and Adam Goss of the Goss Law firm are Greencastle attorneys who focuses on elder law.