Simplifying Your Estate for Your Loved Ones
Written by: Catherine Buck, CFP®
Estate planning starts with the establishment of estate documents: Will, Health Care Proxy, and Powers of Attorney. However, if you have ever been the Executor(rix) of an estate you know there is much more complexity and many roadblocks to hurdle when organizing a loved one’s Estate. Of course, these documents are very important and necessary in ensuring one’s wishes are enacted upon one’s passing. But there are ways to help your loved ones during this difficult time that don’t just include the bread-and-butter estate documents.
1.Keep all Relevant Information Safe and Accessible for your Heirs
Organize your estate documents, financial statements, tax returns, identification, property records, online account login information and professional contacts (estate attorney, tax preparer, financial advisor) in a safe and secure place for your executor(rix). You can do this through purchasing an accordion folder; a secure, online vault; or a safety deposit box in a bank. Either way, ensure you communicate where to find this information and provide them with the necessary tools to access it without you.
2. Work with your Financial Advisor to Update your Net Worth Statement & Cashflow Statement.
In the financial planning process, it is common to review a financial plan annually to ensure your information is up-to-date. This includes updating retirement income streams, social security balances, investment accounts, assets, life insurance policies and liabilities. This information should be made available to you in document form which you can store amongst your estate documents. This way your loved ones aren’t missing that small whole-life policy you purchased twenty years ago.
3.Review Financial Account Beneficiaries Annually
Ensure your bank accounts (checking and savings) and/or brokerage accounts have “Transfer of Death (TOD)” or “Payable on Death (POD)” designations. Similarly, ensure your IRAs, 401ks, 457bs and other investment accounts have beneficiaries selected. Having beneficiaries on your accounts allows them to transfer to your heirs quickly upon your passing and bypasses probate.
4.Planning for your Social Media Accounts
Have you ever considered what would happen to your social media accounts after you are gone? Every social media platform has its own policies and procedures regarding deceased users. The easiest way for your family to carry out your wishes – like deleting an account or creating a memorialization – is for them to have your username and password, which I mentioned in point number one above. However, if these are not provided, a loved one can contact each platform to move forward with your wishes, but it will be a process. Typically, this includes providing proof of your legal authority. For example, to request removal of a deceased family member’s Facebook account you will need to submit proof of authority with either: Power of Attorney, Birth certificate (for a deceased minor), last will and testament, or an estate letter. From there, you also need to provide proof that your loved one has passed away with an obituary or memorial card.
5.Providing Access to your Cell Phone
Give a trusted contact or loved one access to the data stored in your Apple or Android after your passing. They will be able to access photos, videos, messages, files and more.
iPhone: You can choose more than one person to be a legacy contact you can go to your iPhone settings, tap your name and sign in, then select “Legacy Contact”. For further information or guidance, you can view instructions online with apple support here.
Android: You can designate a “Google Inactive Account Manager” through your google account. Go to your Google Account’s Inactive Account manager page, click “Get Started” and set an inactivity period and trusted contacts along with which data permission to give.
Taking the time to organize your important, personal information can ease the burden on your loved ones during one of the most difficult times in their lives. While these steps are not a substitute for formal estate planning, they can provide peace of mind knowing your family will have clear guidance, handled with care and thoughtfulness, after you’re gone.
If you’d like to speak to one of our advisors about your estate plan, please contact our office.
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