NOT A GAME FOR IMPORTANT DOCUMENTS
We all have intentions and desires regarding what should happen to our families and to our belongings when we pass away. However, financial and estate planning have little use if important documents cannot be found by those charged with carrying out a decedents wishes.
And, the fact that we are conducting more and more of our personal business online adds a new complication—family members are finding they do not have the “electronic keys,” like passwords and PINs, to access their deceased relatives’ assets.
If the decedents important information and documents are unknown or unavailable to family, there may be significant financial consequences, and final wishes may not be followed. For example, without a will, regardless of personal wishes, state laws will determine the transfer of your estate. Inactive financial and bank accounts will become the property of the state. Without a medical power of attorney, family members may not agree about who will make potentially life-altering decisions; the argument could ultimately end up in court.
In order to avoid these issues, your clients should review the pertinent documents below and how they should be secured.
- Will: Keep an original will in a secure place known to a trusted family member; this may be your attorney’s office.
- Revocable living trust: Provide an original to legal, financial and investment advisers, and give a copy to the successor trustee.
- Financial power of attorney: Give multiple originals to the appointed person, and give originals to legal and financial advisers. Financial institutions will only accept originals to transact accounts.
- Medical power of attorney: Give originals to the appointed individual, and to trusted family members, all your physicians and your attorney.
- Living will: Give originals to immediate family, all physicians and your attorney.
- Funeral and burial instructions: Provide a copy to trusted family members and any others who will be making final arrangements, including a funeral director if you have prearranged your funeral.
- Account number and electronic login information: Create a list of banking and financial accounts, utilities and any other bills you pay electronically, email accounts and social media accounts. Keep this list in a secure place, known to a trusted family member or other individual and to the person you appoint as your financial power of attorney. Include all ID's and passwords.
- Document location list: Create a list of the location of key documents, such as medical insurance cards, social security card, military discharge papers, deeds, insurance policies and long-term care policies, car titles, etc. Share this master document or its location with immediate family, the person appointed in your power of attorney, and your attorney.
- Personal contacts list: Create a list of individuals to be contacted in the event of a serious illness and/or death; this will be of great assistance to family members or a close friend. Also, a list of professional advisers will be helpful for those you have appointed to assist if you are incapacitated, or in administering your estate.
By organizing these important papers, it will help your client's surviving family more easily get through the probate process and properly distribute the decedents assets.