Think for a few moments about what would happen if you suddenly became incapacitated or died. Would your spouse or family know what to do? Would they know where to find important records, assets and insurance documents? Would they be able to access (or even know about) online accounts or files on your computer? Would they know whom to ask if they need help?聽 Putting the effort in now to establish a formal document inventory can alleviate unnecessary anxiety and turmoil in the future.
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The Key Takeaways
路聽聽聽聽聽聽聽聽 If you should suddenly become incapacitated or die, your family would need to know where to find the information they would need.
路聽聽聽聽聽聽聽聽 Let your key relationships know where to find your document inventory.
路聽聽聽聽聽聽聽聽 Do not assume your process will be readily understood by others; have a trial run to make sure they can find and understand your records.
路聽聽聽聽聽聽聽聽 Keep your inventory current with an annual review.
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What Information Would They Need?
There is a large volume of documents and information that your family would need during a calamitous event such as incapacitation (even temporary) or death. This basic list will help you start thinking of the critical information you would want your family to have.
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路聽聽聽聽聽聽聽聽 legal documents (will, living trust, health care documents);
路聽聽聽聽聽聽聽聽 list of medications you are taking;
路聽聽聽聽聽聽聽聽 list of your advisors (attorney, CPA, banker, insurance agent, financial advisor, physicians);
路聽聽聽聽聽聽聽聽 insurance policies (health and life);
路聽聽聽聽聽聽聽聽 year-end bank and investment account statements;
路聽聽聽聽聽聽聽聽 storage facility location, access method, and inventory;
路聽聽聽聽聽聽聽聽 list of other assets, including location, account numbers, date purchased and purchase price;
路聽聽聽聽聽聽聽聽 safe deposit box location, list of contents and location of key;
路聽聽聽聽聽聽聽聽 list of people to whom you owe money (mortgage, credit cards, etc.);
路聽聽聽聽聽聽聽聽 list of people who owe you money;
路聽聽聽聽聽聽聽聽 death or disability benefits from organizations;
路聽聽聽聽聽聽聽聽 past tax returns.
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Also, many of your records are probably on a computer or stored online. If you scan documents or receive financial statements electronically, someone else may not even know they exist. If you use a computer accounting program such as Quicken, QuickBooksor Mint, those records would be on your computer. Family photos may be stored digitally or online. Much of this information is password protected.
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What You Need to Know:聽 Your document inventory requires a methodical listing of both hard copy and digital forms.聽 While the effort will be more challenging at the start, the maintenance of the inventory is much simpler.聽 Be mindful that your digital footprint will likely grow much faster in the future than it has in the past.
Actions to Consider
路聽聽聽聽聽聽聽聽 Give current copies of your health care documents to your physicians and designated agent(s).
路聽聽聽聽聽聽聽聽 Keep your original documents in one safe place, like a fireproof safe or safe deposit box. Make copies for the notebook described next.
路聽聽聽聽聽聽聽聽 Buy one or two three-ring binders to organize your personal and financial information. You can enter it by hand or create spreadsheets on your computer, but having it all in one or two binders will make it easy for your family to find and use. (If you leave it on your computer, they may never find it.) Include locations, contact information, account numbers and amounts.
路聽聽聽聽聽聽聽聽 Include a list of online accounts and how to access them (including passwords).
路聽聽聽聽聽聽聽聽 Clean up your computer desktop and put important files in an easy-to-find desktop folder.
路聽聽聽聽聽聽聽聽 Have a trial run. Ask your spouse or other family member (or your successor trustee or executor) to pretend that he or she needs to access needed information.
路聽聽聽聽聽聽聽聽 At least once a year, review and update your notebook, computer desktop files and passwords for online accounts.
Find out more about what documents should be stored where and who should have copies by attending one of our free Estate Planning Seminars.
