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Recently I shared the
heart-wrenching story of a young soldier who had to deal
with the unexpected death of his mother. She didn’t have her
affairs in order and now her son has the extremely difficult
task of recreating her financial details from scratch. Here
are some simple steps you can take to ensure that your loved
ones aren’t left in a lurch.
First thing you need to do is create a ‘survivor file’ which
will contain all of your important financial and personal
information. Secondly, you need to tell someone you trust
where to find it should the need arise. Maybe you’ve put
your will or living trust in a safety deposit box. Perhaps
you have a filing cabinet containing your pertinent
financial information. Your computer might hold the bulk of
your money details.
No matter where or how you have this information, it is
vital that your spouse and one other person you trust know
about your ‘survivor file’, its location and how to access
it. It doesn’t help if your spouse is the only one who knows
about it if you are both killed or injured in a car
accident!
Your ‘survivor file’ needs to encompass several key areas.
Your will or living trust is the most important. Of course,
this assumes you have these documents. 70% of Americans die
without even a will. Fewer still have a Medical Power of
Attorney, Durable Power of Attorney or a Living Will, which
will all come into play should you become incapacitated. I
can’t emphasize enough how important it is to have these
properly executed and updated estate documents in place.
Along with your estate documents, your ‘survivor file’ needs
to include a list of financial institutions where you have
accounts. Included should be banks, brokerage firms,
insurance companies, credit cards, pension plan providers
and the like. A simple way to do this is to place either an
original or photocopy of a statement from each institution
in your ‘survivor file’. It should list the account number,
how it’s registered and the institution’s name.
Don’t forget to include the locations of any safety deposit
boxes (and the keys) you have. If this is where you keep
your ‘survivor file”, be sure your trusted person knows
where it is and has the ability to access it. Be sure to
list all passwords for your computer and on-line accounts.
Your ‘survivor file’ should also list professionals you
regularly consult, such as your attorney, accountant or CPA,
insurance agent, financial planner, broker and the like.
State your wishes for your funeral arrangements. If you have
pre-planned your funeral or have a final burial insurance
policy, be sure to list this information as well.
How your personal possessions are divided can create all
sorts of tension among your heirs. Listing who gets what in
writing, with pictures or on video will put an end to any
arguments. Often this information is included in your will
or living trust. If it is, be sure to keep it updated. Your
trusted person needs the ability to secure these assets at
your death so your wishes can be carried out, instead of
your loved ones carrying out your treasures at their own
whim.
If you have pets, be sure to include them in your estate
plan. Who do you want to care for them after you’re gone?
Make sure this person is willing to assume this task
beforehand and include in your ‘survivor file’ any pertinent
information such as your pet’s vet and any medical
conditions.
Lastly, if you’re one of those people who have hidden money
under the mattress or put guns up in the attic, make sure
you note their location in your ‘survivor file’. Otherwise,
they might never be found!
Don’t leave your loved ones hanging. Create your ‘survivor
file’ today and make sure it is clear who is in charge when
you’re out of the picture. That way, you can help avoid
confusion and misunderstandings during what will already be
a difficult time for those you love.
For clear, straightforward, unbiased answers submit your
questions to www.guardingyourwealth.com/askjeff.htm.
Mr. Voudrie is a Certified Financial Planner, nationally
syndicated newspaper columnist and President of Legacy
Planning Group, Inc., a Private Wealth Management Firm in
Johnson City, TN. He can be reached toll-free at
1-877-827-1463 or
www.guardingyourwealth.com.
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