All of us have intentions and desires about what should happen to our families and to the things we own when we pass away. However, financial and estate planning documents are of little use if the documents either cannot be found or are inaccessible to those charged with carrying out your wishes. The rapidly increasing use of “digital files” – on smartphones or computers – is something to take into account as well as you think about estate planning. Family members may not have the “electronic keys” necessary to uncover some of the assets of their deceased relatives – these keys being passwords, access, and even knowledge that some assets exist.
If you have placed important documents in a secure place unknown or unavailable to family, there may be significant financial consequences and your final wishes may not be followed. For example, without a will, regardless of your 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 on who is to make potentially life-altering decisions and could ultimately end up in court. In order to avoid these potential issues, it is important to review the pertinent documents and how they should be secured.
- Will: An original will should be kept in a secure place known to a trusted family member, or perhaps with your attorney.
- Revocable living trust: An original should be given to legal, financial, and investment advisors, with a copy to the successor trustee.
- Financial Power of Attorney: Multiple originals of the Financial Power of Attorney should be given to the person appointed, with originals also to legal and financial advisors.
- Medical Power of Attorney: Originals should be given to the individual appointed, as well as trusted family members, all physicians, and your attorney.
- Living Will: Give originals to immediate family, all physicians, and your attorney.
- Funeral and burial instructions: Provide a copy of funeral and burial arrangements to a spouse, children, a trusted family member, and others who will be making final arrangements, including a funeral director if you have prearranged your funeral.
- Electronic and social media account logins: Keep the list in a secure place, known to a trusted individual, and to whom you appoint in your Financial Power of Attorney.
- Financial and bank accounts: Keep a written list of the account log-ins and passwords that can be accessed by a trusted family member or other individual.
- Document location list: Make the location of this master document known to immediate family and the person appointed in the Power of Attorney, along with your attorney.
- Personal contacts list: A list of individuals to be contacted in the event of a serious illness and/or death will be of great assistance to family members or a close friend. Also, a list of professional advisors will be helpful for those you have appointed to assist if incapacitated or in administering your estate.
Each family has its own dynamics. If you want to be the one to have control of who will make critical financial and health care decisions for you should you become incapacitated, and to honor your final wishes, you must have the documents in place and accessible to those who will be carrying out those functions.