A lot of people assume that having a will means everything is taken care of. A will is a big part of an estate plan, but it’s only one piece of the puzzle. If other records are missing, outdated, or impossible to find, your family may still face delays, confusion, and additional legal work.
Getting your paperwork in order now can save your loved ones a lot of frustration later. You don’t need to keep every document in one drawer, but you should know what you have, where it is, and who needs access to it.
Will or Trust
A will or trust explains how you want your assets handled and who should carry out those instructions. Without a valid plan, state law may determine how certain property is distributed, which may be different from what you would have chosen.
Keep the current version in a secure place and make sure the people who may need it know where to find it. If you have made major changes to your family, finances, or property, it may also be time to review the document with an estate planning attorney.
Beneficiary Designations
Accounts such as life insurance policies, retirement plans, and certain investment accounts often pass to the named beneficiary. That designation can sometimes determine who receives the account, even if your will says otherwise.
Check these forms after major life changes such as marriage, divorce, remarriage, or the death of a beneficiary. An old beneficiary designation can create confusion at a time when your family is already dealing with enough.
List of Financial Accounts, Assets, and Debts
Your family can’t deal with an account they don’t know exists. A current list of bank accounts, investments, loans, credit cards, real estate, and other assets can make it much easier to sort out your financial affairs.
You don’t have to record every tiny purchase or transaction. Focus on account names, institutions, contact information, and the locations of relevant records, then update the list whenever something major changes.
Related: These Are the Assets Adult Kids Hope Their Parents Leave Behind—And It’s Not Just Money
Deeds and Property Records
If you own a house, land, or other real estate, keep the deed and related property records in a place where you can easily retrieve them. These documents may be needed when property is transferred, sold, refinanced, or handled after the owner’s death.
It also helps to keep track of mortgage information, property tax records, and any other paperwork tied to the property. Having these records together can save your family from having to search through years of old files.
Retirement and Pension Information
Retirement accounts and pension plans can include benefits for a surviving spouse or other eligible family members. The rules vary by plan, so it helps to keep the account number, plan name, provider contact information, and benefit details together.
Make a note of any former employers connected to old retirement plans too. Accounts from previous jobs are easy to forget, especially if you have changed employers several times.
Related: Retirees Say They Need $800K to Retire—But Most Aren’t Even Close
Life Insurance and Annuity Policies
Life insurance pays benefits to beneficiaries after the policyholder dies, but family members need to know the policy exists before they can file a claim. Keep the policy number, insurance company, agent information, coverage details, and beneficiary information together.
The same goes for annuities and other policies that may provide payments or benefits. Store the records in a secure place and make sure a trusted person knows how to locate them.
Digital Account and Password Information
A large part of modern life happens online, from banking and investments to email, bills, subscriptions, and cloud storage. Without access to these accounts, family members may have difficulty finding records, paying bills, or closing accounts.
Don’t leave passwords written on a loose sheet of paper in an obvious spot. A reputable password manager or another secure system can give your family a way to access the information they need without exposing your login details.
Related: 15 Important Documents You Should Never Throw away
Healthcare Directives and Medical Power of Attorney
A healthcare directive can explain the medical care you want if you become unable to speak for yourself. A medical power of attorney can designate someone to make healthcare decisions on your behalf, depending on the laws in your state.
These documents can give your family clear guidance during a medical emergency. Keep copies where they can be found quickly, and give copies to the people who may need them, including your healthcare providers when appropriate.
Location Guide for Important Documents
A safe full of documents doesn’t help much if nobody knows where the key is or how to open it. The same problem can occur with files stored on a computer or in a cloud account that only one person can access.
Create a simple location guide that lists where your major records are stored. It might include the location of your safe, file cabinet, spare keys, password manager, property records, insurance paperwork, and other documents your family may need.
Related: Stop Keeping These 9 Paper Documents and Hold On to These 5
Military Service Records (DD Form 214)
For veterans, the DD Form 214 is a key record showing military service and separation details. It may be needed when applying for certain veterans’ benefits, services, or burial honors.
Keep a copy with your other records and let a trusted family member know where it is. You may also want to keep more than one copy in separate secure locations in case the original is lost or damaged.
Powers of Attorney
A financial power of attorney can give another person authority to handle certain financial matters for you if you are unable to do so. The document can be written to give broad authority or limited authority, depending on your needs and state law.
Keep the current document easy to locate and make sure the person named as your agent knows about it. Laws vary by state, so having an attorney review the document can help you avoid problems with an outdated or incomplete form.
