The Key Takeaways
o If you should suddenly become incapacitated or die, your family would need to know where to find the information they would need.
o Let your key relationships know where to find your document inventory.
o Do not assume your process will be readily understood by others; have a trial run to make sure they can find and understand your records.
o Keep your inventory current with an annual review.
What Information Would They Need?
There is a large volume of documents and information that your family would need during a calamitous event such as incapacitation (even temporary) or death. This basic list will help you start thinking of the critical information you would want your family to have.
o legal documents (will, living trust, health care documents);
o list of medications you are taking;
o list of your advisors (attorney, CPA, banker, insurance agent, financial advisor, physicians);
o insurance policies (health and life);
o year-end bank and investment account statements;
o storage facility location, access method, and inventory;
o list of other assets, including location, account numbers, date purchased and purchase price;
o safe deposit box location, list of contents and location of key;
o list of people to whom you owe money (mortgage, credit cards, etc.);
o list of people who owe you money;
o death or disability benefits from organizations;
o past tax returns.
Also, many of your records are probably on a computer or stored online. If you scan documents or receive financial statements electronically, someone else may not even know they exist. If you use a computer accounting program such as Quicken, QuickBooks or Mint, those records would be on your computer. Family photos may be stored digitally or online. Much of this information is password protected.
What You Need to Know: Your document inventory requires a methodical listing of both hard copy and digital forms. While the effort will be more challenging at the start, the maintenance of the inventory is much simpler. Be mindful that your digital footprint will likely grow much faster in the future than it has in the past.
Actions to Consider
o Give current copies of your health care documents to your physicians and designated agent(s).
o Keep your original documents in one safe place, like a fireproof safe or safe deposit box. Make copies for the notebook described next.
o Buy one or two three-ring binders to organize your personal and financial information. You can enter it by hand or create spreadsheets on your computer, but having it all in one or two binders will make it easy for your family to find and use. (If you leave it on your computer, they may never find it.) Include locations, contact information, account numbers and amounts.
o Include a list of online accounts and how to access them (including passwords).
o Clean up your computer desktop and put important files in an easy-to-find desktop folder.
o Have a trial run. Ask your spouse or other family member (or your successor trustee or executor) to pretend that he or she needs to access needed information.
o At least once a year, review and update your notebook, computer desktop files and passwords for online accounts.