It seems like we are always in a hurry to get to the next appointment, take the kids to the next game, or get the next meal on the table. As a result, some really important things may consistently get pushed to the back burner ... things like updating your will, signing your Power of Attorney, completing your advance directive or identifying who will be your children's guardian should you pass away.
All of these things collectively fall under the "estate planning" umbrella and are all critically important to your family if something should happen to you. Why do you need an estate plan? Leaving an unorganized paper trail can mean a nightmare for your spouse and children. It could also mean that much of your estate would go into probate and take years to resolve.
Tackling all of your estate planning paperwork at once will likely seem overwhelming but you have to start somewhere. Start by pulling much of your information together into one organized set of files. Once you gather this information, let key people - such as your spouse, your siblings, or the executor of your estate - know you've compiled it and where it's filed.
If you haven't done anything, the best time to start planning your estate is today. The process of updating all of your paperwork will probably take more than one session so don't expect to get it all done in an evening. The list to the left gives you an idea as to what documents your estate plan should include. The hardest part is getting started. Once you're done you can rest easier knowing that everything is in order.
Crucial paperwork to include:
- Wills - for you and your spouse.
- Power of Attorney - authorizes someone to act on your behalf for legal and business purposes.
- Advance Health Care Directive - (also known as a Living Will) outlines what actions you would like taken if you are not able to make your own decisions.
- List of your financial accounts - e.g. savings, retirement, 401(k), credit card accounts (including card numbers), any loans, safety-deposit box information and the name of your financial planner, if you have one.
- Trusts - copies of any trusts you've established.
- Insurance policies - these will identify your beneficiaries.
- Tax returns - for recent years, include your CPA's contact information.
- Titled assets - your home mortgage, car titles, etc.
- Final arrangements - funeral/burial information.
- A list of important people - such as any business partners, your lawyer, insurance representative and the guardian for your children.