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Life is full of unforeseen events, and envisioning what happens after you pass away isn’t easy for anyone. However, ensuring that your loved ones have access to essential financial information can provide a measure of comfort during a very unsettling time. By organizing your affairs in advance and sharing that information with your loved ones, you can provide them with financial security and the ability to manage your estate effectively.

Listed below are some of the key financial documents and information your loved ones should have access to in the event you pass away or are unable to make decisions for yourself.

1. List of key contacts

Your loved ones should have a list of key financial professionals, such as your attorney, accountant, financial advisor, and insurance agent. These individuals can help navigate complex financial matters and provide guidance. One call to a trusted wealth advisor could simplify an overwhelming list of tasks for your loved ones as they are grieving. 

2. A will and estate plan

Your last will and testament is one of the most crucial documents your family will need. It outlines how your assets should be distributed and names an executor to carry out your wishes. If applicable, consider establishing a trust to manage assets for beneficiaries. Without a will, your estate could be subject to lengthy legal proceedings and state laws may determine the distribution of your assets.

3. Power of attorney and advance directives

A financial power of attorney allows a trusted individual to manage your financial affairs if you become incapacitated. Similarly, advanced directives, such as a living will or healthcare power of attorney, ensure that your medical and financial decisions align with your wishes.

4. Life insurance policies

If you have life insurance, make sure your family knows where to find the policy details, including the policy number, insurer contact information, and beneficiary designations. This will allow them to file a claim quickly and receive the financial support you’ve designated for them.

5. Bank and financial account information

Your loved ones should be aware of all your bank and financial accounts, including checking, savings, investment, and retirement accounts. Provide details on account locations, beneficiary designations, and any required steps for claiming funds.

6. Assets and liabilities

If you own real estate or vehicles, your family will need access to deeds, titles, and registration documents. This ensures a smooth transition of ownership or the ability to sell assets if needed. Likewise, your loved ones should be informed of any outstanding debts, including mortgages, car loans, credit cards, and personal loans. A list of creditors, balances, and payment schedules will help them settle your financial obligations appropriately.

7. Digital and online financial accounts

With the rise of digital banking and investment platforms, make sure your family knows how to access your online accounts. Consider maintaining a secure document with usernames, passwords, and security questions. Alternatively, use a password manager and share access with a trusted person.

8. Tax records

Your family will need access to your past tax returns, as well as documents related to ongoing tax obligations. Keeping these records organized will help prevent legal issues and ensure compliance with tax authorities.

9. Safe deposit box and storage locations

If you store important documents in a safe deposit box or home safe, make sure your loved ones know the location and how to access it. Provide information about any keys, codes, or required legal authorization.

10. Master list of information

Once you've gathered these documents, create a master list that includes key details of how to access the information. This document should be stored in a safe place and made accessible only to those you trust. Keep physical copies of documents in a fireproof safe or a safe deposit box and consider digital backups in encrypted cloud storage.

Once your master list is created, set aside time annually to review and update the information it contains.

Preparing your financial documents before you pass away is one of the most thoughtful things you can do for your loved ones. It can prevent confusion, legal complications, and financial hardships. By taking the time to organize and share these important details, you can ensure a smooth transition and provide your family with the support they need during a difficult time.

Is there a wealth planning topic you would like to learn more about? Email us at [email protected].

 

Mimi Edwards is the chief operating officer of Wagner Wealth Management, which has offices in Greenville, Anderson, and Oconee counties. Call us at 864-236-4706 or visit www.wagnerwealthmanagement.com to learn more about our firm.

Securities offered through Arkadios Capital. Member FINRA/SIPC. Advisory services through Wealth Management Advisors, LLC. Arkadios Capital and Wealth Management Advisors, LLC, are not affiliated through any ownership.