Loss of Life – Financial Preparation and a Path for Your Executor/Family

It was Benjamin Franklin who famously said “nothing is certain except death and taxes.” As you can imagine, we see all different types of taxes in our profession and help clients deal with them. This can include anything from filing returns, reducing liabilities, planning, projecting, etc.

Sadly, we also experience loss. Recently my father-in-law/friend passed away. This was more sudden than expected, he was battling various illnesses for several months. Unfortunately, he did not leave his family a road map or guidance to his financial life. He was a wonderful parent, grandparent, and friend to many, so I hesitate to use him for anything negative, but this situation can hopefully help others.

Fortunately, several key items were addressed, such as a medical directive, medical power of attorney and a general power of attorney, incase it was needed. Keep in mind, that every person and family will need to make their own decisions based on their beliefs and values. The key is to make the decision and appoint someone to carry them out when you are not able to do so.

The good news is, aside from the living documents, there is a will and Executors are named. This helps give someone the responsibility. Too often we see grieving family members who have no concept of what to do or how to go about it. They may not know anything about your financial life, where you keep documents or what you have. Let’s be honest, we don’t go around telling our children, families or friends this information. What I am suggesting is, tell the one or two key people “if something happens, go to the top drawer of the filing cabinet, you will find what you need.” Another point is that you cannot always count on a spouse because the event may impact both of you or health conditions, dementia, etc. may leave them unable to provide any information.

We talk with clients and hopefully our own household about good financial strategies, planning, ideas and the like. The idea is to have a reference of what you have, that when the time comes, it can be useful. This is not just for older generations but also for us middle aged (okay back end of it) and younger people. You might think, well we did a will so the kids would be taken care of, great. How can these guardians actually get access to the funds so they can take on this responsibility?

The suggestion is to create the starting point, a road map if you will, for your executor/family to know what to do and who to contact. They may know that Cullari Carrico are the accountants, but we will not know where you keep your documents or if you have life insurance.

You can be very specific and in-depth with this or have a more general approach. Here are some key items to include:

• Where do you keep your copy of the Will, Power of Attorney, Health Care Directive, etc.?
• Listing of life insurance policies (the amount, agent name and contact information and don’t forget you may have policies from an employer or former employer)
• List of investment accounts (who is the brokerage company? this will help them identify statements or communications they see, the advisor’s name and contact information.)
• List of retirement or pension funds (what are the sources, advisor or contact information and any special items like “survivor’s benefits” for a spouse?)
• List of bank accounts (what banks, do you have a contact person, are they joint accounts or POD (pay on death) type?)
• Where is the deed to the house or property? Is there a mortgage?
• Are there any major assets or liabilities (debt) that must be addressed?
• Are there any private loans (receivable or payable)? or any special financial arrangements?
• Do you have specific funeral arrangements or prepaid accounts for your service, final resting place (any military burial benefits)?
• Are your vehicles owned or leased (through what company, any loans)?
• Who handles your other insurances (homeowners, vehicles, umbrella policies)?
• If you are a business owner, you may need information to direct your family for that asset and you may need a similar listing / instructions for your business.

Everyone’s situation will be unique. While you are assembling your lists, be sure to look at and update beneficiaries. Make an assessment to confirm your medical directives, wills and powers of attorney are up to date and give you proper coverage. Consult an attorney as needed.

This list is meant to be a suggestion, a little push, and a place to start. You need to customize it to your own situation and financial life. Please create your lists and make sure to update it every few years or annually based on your situation and/or risk. Have the peace of mind that your family is taken care of and that you have given them the keys to open what you have set up for them.