Because “They’ll Know What to Do” Isn’t a Plan
Talking about estate planning with our family isn’t fun or comfortable. It is, however, necessary. As many of us plan to see our family over the upcoming holidays, now is the time to carve out a little face-to-face time for such serious conversations. That way, when the time comes—as it inevitably will—our loved ones will know what to do because we created a plan and have all our legal documents in good order.
Whether we’re doing this for ourselves or trying to gently encourage parents or loved ones to do so, getting our legal documents in order is a way to ensure that those we leave behind don’t have to scramble blindly during a time of grief.
Building the Plan’s Framework
Whether or not we actually have one, many of us assume that all we need is a will and that’s enough. The reality is that a will is only one part of a much larger plan for what happens to our affairs, both during our lifetime and after we die. That’s what we call an estate plan.
Part of estate planning is the Love Letter we talked about last month. We can use that to explain and advise, but it holds no legal standing. Think of the Love Letter as an introduction to the plan while the estate plan contains the framework. By documenting our wishes and goals in an estate plan, it gives our executor, loved ones, advisors, lawyers, and the courts a legal outline to follow.
Filling in the Framework
If the Love Letter is the introduction and the estate plan the framework, what fills it out?: Having our legal documents in order.
What does it mean to have our legal documents in order? It means looking beyond the will and making sure the documents and records our family may need are current. We went over some of these last month, but more broadly they may include:
Wills and estate documents
- Will
- Trust documents
- Beneficiary designations
Powers of attorney
- Financial power of attorney
- Health-care power of attorney or health-care proxy along with any advance directive or living will
Identification and personal records
- Birth certificates
- Marriage or divorce records
- Social Security card
- Passports and driver’s licenses
- Military records
Property and financial records
- Deeds, property records, titles
- Bank and investment account information
- Retirement account information
Documents related to children and dependents
- Guardianship provisions
- School and health records
- Custody or adoption documents
- Information about trusts or accounts established for children
Other important records
- Life insurance, long-term care, or other insurance policies
- Funeral or burial arrangements
- Digital account information and instructions
- Contact information for attorneys, financial professionals, accountants, and insurance professionals
Taking Care of the Details
“They’ll know what to do” only works if the people who need to act can find the documents that give them the information and authority to do so. To begin, we need to know what we have, so keeping a master list of our legal documents, records, and other important information is helpful. Note which are originals or copies and where the originals are held.
We should store our legal and other important documents securely where they’re safe from fire, water, theft, and accidental destruction. A fire-resistant home safe or lock box is a good option. Make sure they’re accessible and that the appropriate people know where they are and how to access them.
It’s also a good idea to keep a digital backup of our documents, review and update them at least annually and especially after any major life changes such as marriage, divorce, birth or adoption of a child, death in the family, a significant move, or substantial changes in assets.
Ensuring the Pieces Fit Together
Creating an estate plan is a difficult undertaking, and it’s not something we should do entirely on our own. We can find plenty of information online, but information isn’t the same as knowing what applies to our particular situation.
Estate planning involves state-specific legal requirements and decisions that are easy to overlook. Having the right professionals involved makes sure the documents are properly prepared and the pieces work together as intended.
Revival Wealth works collaboratively with you and a highly qualified estate planning attorney to ensure your plan is laid out in a way that reflects your desires and values. We can guide you through the process and help safeguard the legacy you want to leave.
If you haven’t created your plan yet, or want to update an existing estate plan, make an appointment with us soon to get started.