It becomes a lot easier for your family to deal with your estate when all the paperwork’s together, including the things you might not even realize matter.
Paper key under the floorboard
It sounds official. A revocable living trust seems kind of serious, and you might think it’ll handle itself, but it doesn’t. You can have a paper plan in the form of a trust, yes, yet you’ll also need to have the property connected to it.
The signed trust, any amendments, and the successor trustee’s name, it all needs to be together. Don’t forget to leave a note that tells your loved ones where you’ve specifically left the original, as well as proof of any houses or accounts moved into the trust.
List behind the list
A trust funding schedule is important for many reasons, and the biggest one is that it tells your loved ones what made it into the trust. They’ll know exactly whether it includes the house and bank account, along with the brokerage account, and maybe a business interest, whatever.
Make the schedule as clear as you can by including the asset names, account endings, and the date you moved the stuff over. You should also make it clear where you’ve stored the proof. That is, unless you want your family to waste time figuring out what’s in the trust. Probably not.
Names typed years ago
A lot of people leave their beneficiary forms with their companies instead of in their estate folders. That’s a problem. Leaving these forms in the wrong place means leaving your family to figure out where your retirement plans and annuities are. Hardly a good idea, is it?
Even things like workplace benefits and life insurance could be hard for them to track down, so make it easier for them by having everything laid out. All of it. You’ll need the accepted form and the latest online confirmation, if possible, along with the details of your beneficiaries.
Quiet shortcuts
What are payable-on-death (POD) and transfer-on-death (TOD) labels, exactly? When you die, these things move your bank or investment accounts to the named person on the account, simple as that. The issue is that you’ve got to make sure your family knows about the label.
You’ll need to make a list of every POD or TOD account that you have, including the name of the company and the account ending. Don’t worry, though, the person named won’t get control of it while you’re alive, so you’re not going to deal with them getting into your funds prematurely.
Numbers in a folder
You’d be surprised at how many people don’t get their life insurance policies sorted before they pass away. They think it’s enough to just have a policy, but no, you need to have a document that clearly states the details of the policy.
You know, like the name of the provider, the policy number, agent contact, beneficiary page, premium status, all of that stuff. You’ll have to make it clear whether it’s from a work or private-owned policy, too. Don’t leave it up to your family to work everything out.
Choices nobody wants to guess
It’s not something you probably want to think about, but you have to do it. You’ve got to be specific about what you want your loved ones to do with your body after you die. Funeral? Burial? Cremation? Make it clear and write some instructions for them to follow.
You should also tell them about whether you want a simple gathering or a religious service, music, obituary notes, among other things. It’s not like you need a 200-page document or anything, just enough that your loved ones have an idea of your wishes.
Plain-language map
Let’s get one thing straight. No, a letter of instruction isn’t a will, and no, it won’t replace your legal documents. It’s more of a cheat sheet for your loved ones, and it should include details of how they can start the legal proceedings, with stuff like your attorney and accountant’s names.
It should have stuff like your employer contact details and the location of your safe deposit box, too. There should also be details about who to contact immediately when you pass. The goal? Giving your loved ones some practical help when they need it.
Everything in one place
A full asset inventory is exactly what it sounds like, it tells people exactly what stuff you have, such as your checking accounts and your 401(k). You should have every asset listed on there, along with any debts from your mortgage or credit cards.
Put the name of the item with the company, along with the account ending, owner, and beneficiary status. It’ll be helpful to include the rough value and proof location, you know, just in case.
A drawer with receipts
Nobody likes doing them, and especially not your family once you pass. Still, you need to have your tax records ready for your loved ones in case they need to file a final return for you. These records have to include all of your recent returns and other documents, like W-2s and 1099s.
The IRS says you usually only need to have the last three years on record, but there are some documents you’ll need to keep for a bit longer. The longer, the better.
Paperwork tied to the walls
It’s weird how easy it is to lose your real estate files. You might have a deed in a desk and a refinance packet in a box, along with a mortgage statement in an email. But when it gets that messy, you can’t exactly expect your family to deal with it all, can you?
You’re better off making a small file for each property that includes all the details about it. These include things like the deed, title policy, mortgage note, payoff information, and tax bills. All the boring stuff, really.
Sources: Please see here for a complete listing of all sources that were consulted in the preparation of this article.
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