Preparing for Life’s Certain Uncertainty
“Just in case…” – A phrase I often use as I start to tell my husband some information of (usually financial) importance that I’ve filed away with our other important documents. I had a friend use this same phrase recently when updating me of changes to their estate planning situation.
As a CERTIFIED FINANCIAL PLANNER® professional, planning for the ‘just in case’ or unexpected moments in life are usually not far from the top of my mind. Whether it be in the case of death, disability, or even an unexpected illness, being organized and prepared for life’s unexpected is key to any individual or family’s financial success. I also know from my line of work that simply passing this information along when it comes to mind isn’t enough to properly prepare your loved ones for life’s unexpected moments. If you have never thought to organize your documents for life’s certain uncertainty or have done so, but it has been a while since you’ve reviewed, use the steps below to help set your loved ones up for success.
- Compile a list of all bank accounts, and account logins where bills may be paid. Gone are the days where each of your bills can be tracked down by a physical statement coming in the mail. To help your loved ones, compile a list of all your recurring bills or accounts as well as login information. Be sure to note which accounts may be set up as an auto draft for a bill or utility payment.
- Ensure you have a list of contact information for your financial team (i.e. your financial advisor, CPA, and attorney). As an advisor, I try to send clients with my business card to share with those who may handle their finances should they become incapacitated or pass away. I list this information as well for my personal matters. A quick list of individuals who should be contacted first will make life easier for your loved ones trying to figure out their next steps.
- Decide on where and how to organize key documents. Storing this information can be as simple as a binder or folder kept somewhere like a fireproof box or safe within your home. You can also opt for digitally storing this on your computer, a USB, or a cloud-based storage like OneDrive or iCloud. Wherever you decide to store them, include the items listed above as well as your estate documents, deeds or titles, and potentially a list of wishes or notes for your loved ones on where to start.
- Tell your closest (and trusted) loved ones where to find this information and openly communicate your wishes. All your efforts and organization are useless if your loved ones aren’t clear on where to find this information. Clearly communicate with those who will be handling your finances on where to find your ‘just in case’ folder and what the code or password may be to access this information. Take it one step further and review your information with them so that your wishes can be made clear.
Remember that this is not a process to review once and never look at again. Whether it be a major life change, an upcoming trip, or simply just because time has passed, take the time to review the documents and information you have compiled to best help your loved ones when life’s changes come your way.
Published in the Victoria Advocate.
Sara Potts is a CFP® professional and Lead Advisor with Keller Wealth Advisors.
