We’re continuing the conversation about the transition of financial and estate responsibilities when life events happen. Things like death, divorce, and incapacity can leave the remaining spouse or caretaker saddled with the weight of keeping everything in order.
To better prepare for these situations, we should remember principles like communicating early and often. Setting up access to accounts and credentials beforehand can make things smoother as well. One way to supplement any estate planning documents and directives would be to create a reference guide that maps out important information effectively.
As a reminder, this reference guide will go through major areas like:
•Advisors, Assets, and Financial Information
•Liabilities
•Insurance and Benefits
•Documents and Other Miscellaneous Information
•Family History and Final Thoughts
In this installation, we’ll focus on listing any advisors, accounts, assets, and pertinent financial information.
Starting with advisors and key contacts, make sure you list first and foremost your most trusted contact or primary contact to reach if needed. When listing advisors, include financial professionals, attorneys, CPAs/accountants, employers or former employers, realtors, insurance agents, doctors, etc.
While this is not exhaustive, it includes some important people who can help make decisions easier and provide expertise. You’ll want to include each one’s name, address, phone number, and email address.
Then, you’ll list all of your assets and accounts. “Accounts” is a very broad term, so let’s narrow down what all that entails: 401k’s, IRAs, pensions, social security, stock options, deferred compensation, retirement benefits, survivor benefits, annuities, brokerage accounts, individual stocks, bonds, custodial accounts, bank accounts, and real estate or property. The key here is to identify what has a monetary value and list it with all applicable details. This should include what type of account, where it is held, balance, account number, beneficiaries, website or location, login info, contact info, expected payments, where to find statements, and the goal or purpose of each one.
This is a great time to ensure that all assets and accounts are titled correctly, beneficiaries are named properly, and federal and state taxes are being minimized.
As a reminder, this process can be daunting and feel overwhelming. As you work through it, involve your trusted professionals as much as you need.
In our next newsletter, we will cover Part 3: Liabilities. As always, the team here at Smedley Financial is here to help walk you through this
process.
For part 1 in this series, click here. Part 3 here.
