The Gift of Organized Information
In helping families with estate planning, we see the burden placed on spouses and adult children when their loved one is suddenly no longer able to handle financial decisions due to dementia, stroke or some other illness. The same is true after you pass, when it’s time to settle your estate. Surviving spouses and loved ones often have little information on assets, life insurance policies, how to login to information stored on the deceased’s computer, or where to find the Will or Trust so that the estate can be settled. You can save your loved ones hours of work and anxiety and help them avoid mistakes by gifting them the information they will need in an organized fashion.
When it comes to how and where to store your important information, here are a few guidelines to help you get organized and ensure your loved ones and named agents have what they need when the time comes.
Create an “Asset List”
The most helpful thing you could do to help your loved ones or named agents manage your affairs if you become incapacitated or settle your estate after you pass, is to keep an “Asset List” that you update periodically when you acquire new assets, but at least once a year. It would be best to keep this list in a digital format. A spreadsheet is preferred, but even a type-written list is better than handwritten or no list at all. Information you should include in your list about each asset includes:
- Asset Name or Institution Name (examples: Hometown Bank Checking or Ranch at 1234 CR 1500, Garza, County Texas or Safe Deposit Box at Hometown Bank or American General Life Insurance Policy)
- Owner(s) names (both you AND your spouse or only one?)
- Account Number or Access Numbers
- Current Value (Cash Value if any of life insurance)
- Coverage Amount (for life insurance/annuities)
- Term (life insurance/annuities)
- Online Access Credentials, if any.
- Location of documentation, if any (in important papers filed where?)
- Notes
Create a “Computer and Social Media Account Logins List”
You could put this list in a second “tab” of our Asset List spreadsheet, and if you do, you can include links to all your social media accounts. But no matter how you create the list, just be sure to print it, and file it with your Important Papers.
Have a Dedicated Place for Important Documents
Designate a particular place such as a section of your file cabinet, drawer or safe, and clearly mark it “Important Documents” for your papers regarding assets and accounts, as well as your original signed estate planning documents.
Estate Planning
In storing your original estate planning documents such as your Will, Trust, Medical and Financial Powers of Attorney, HIPPA Release, etc., it’s best to keep them together in one binder or folder that is clearly marked.
Account/Asset Information
Keep account statements, plus any deeds, insurance policies or annuities listed on your Asset List in clearly marked folders.
Asset List
Print a copy and file in the “Important Papers” file each time it’s updated. On the printed copy, include:
- Where the Asset List is saved on your computer, so that your agent can find the digital version of it.
- Your computer password!
Distribute Digital Copies of your Estate Planning Documents
It’s a good idea to distribute a digital copy of ALL your signed estate planning documents to the agents you named in those documents to act for you. These would be:
- Trustees of Trusts
- Executor(s) or Personal Representatives name in Wills
- Agents named on the Powers of Attorney, the HIPAA Release, and the Declaration of Guardian
POAs on your Agents’ phone
Going a step further, for the Medical and Financial Powers of Attorney, which are documents agents use to have authority to act for you while you are still living, we you ask named agents (both immediate and successor agents) to keep a copy of the document on their phone via scan/photo/email, for ease of access in an emergency. In most cases, a copy works just fine with a hospital or financial institution.
Note: due to security concerns, it’s best not to email your Asset List or Computer and Social Media Accounts Login List. Instead, you might either make a thumb drive with both lists plus copies of your estate planning documents. You might also text them the location of where to find your Important Papers file in your home.
Inform Your Loved Ones
Let your loved ones and agents know where the designated spot in your home is for your Important Papers. In the second half of life, compiling, storing and distributing this important information is one of the best gifts you can give your loved ones!
Download Your Life & Legacy Information Template
To make this process simple for you, we’ve created a template you can use to get started right away. Download your Life & Legacy Information Template to begin bringing clarity and peace of mind to your planning journey.
