ORGANIZING IMPORTANT ESTATE PLANNING DOCUMENTS

Sixty percent of the population doesn’t have an estate plan. There are plenty of reasons why, so I doubt that number surprises people anymore. The surprising part is that even when people set up an estate plan, often they set it aside and never tell anyone where the documents are stored. They typically don’t create a roadmap of their assets to help the executor or trustee know what financial assets they must marshal and more often than not do not compile important documents in any organized fashion. That leaves family members to hunt for all of the information while they are grieving from a loss, or even dealing with an unexpected trauma such as a car accident. If you or a loved one have recently created an estate plan, follow these next steps to maximize their effectiveness and minimize the stress on your loved ones. This list is also helpful if someone is still alive but unable to gather their documents on their own.

Start by ensuring the following documents are all in the same place. Make sure you provide a copy of these documents to a close friend or family member, or at the very least let them know where the documents are stored (more on that below). A copy of the front page of bills and investment accounts should contain the information needed (bank or institution, account number, financial information), it will not be necessary to keep an entire copy of the insurance policy or tax return for these purposes.

Once these documents are compiled, discuss them with your loved ones. It is not necessary that everyone in your family knows all the details, but you need to have 1 or 2 close confidants to handle the documents and use them when appropriate. If you do include your entire family, make sure to stress that you created these documents to ensure your wishes would be honored and relieve some of the burden from their shoulders. Ask them to respect your wishes and stress to them the importance of avoiding a fight over inconsequential details when the time comes.

There are several options to store your documents – the best option is the one with which you are most comfortable. First, you could store them in a fireproof safe. This will help to protect them in the event of a fire, and typically even provides protection against water damage in certain circumstances. A second option is a secure file cabinet. This will not protect against fire but does offer protection against the majority of water damage. A common third option is to store them in a safe deposit box. This typically offers the highest level of protection but creates barriers to access. You will want to name the executor as the transfer-on-death beneficiary, or better yet, an authorized user, so they will have immediate access while you are still alive, if necessary. A fourth and final option is to keep these copies on a thumb drive (or several) distributed to people you trust.

For each guardian: give them a copy of the will and/or trust, or at the very least the relevant provisions.

For each executor or trustee: give them a copy of the will or trust.

For each financial agent: give them a copy of the financial power of attorney.

For each health care agent, doctor, and hospital: give them a copy of your health care power of attorney and living will. It is convenient to make several copies of your health care power of attorney and living will so they are handy in the future should you have a surgery or procedure.

If you compile and review these documents with your loved ones, they will be miles ahead when it matters. And while they may not understand the importance now, they will ultimately be extremely grateful. If you would like help organizing these documents and this information in general, you can get a copy of our “Asset Suitcase” at this LINK!

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