Most people don’t like to think about death or traumatic events, but they do happen, and we do need to be prepared. If something were to happen to you today (we certainly hope nothing does, but we do need to start here), would your family know your wishes? Would they know what your finances were and how to handle them? Do they know where to find last year’s tax return or where your checkbook is?
There are some simple basics that you can do to make preparations for your family regarding your finances. One easy step is to prepare a one-page crib sheet. This would be important to your family, and if there was ever a natural disaster, and you had to flee your home, this sheet would help you reconstruct financial records. You can start by listing what accounts you have and where they are (i.e. checking account at Bank of Money, life insurance account through ABC Life). Leave instructions on this form as to where to find your important personal documents such as your life insurance policies, bank statements, marriage license, birth certificates, and the original copy of your will (important note – you need the original copy, the one that is signed and witnessed. Photocopies are not accepted – if one cannot be found, the law will assume you destroyed it because you no longer agreed with what it originally said. Watch for an upcoming blog regarding wills!). You should also point towards the forms you have showing who your beneficiaries are on your accounts because these determine who gets the funds, not your will.
Once you have created your crib sheet, you should make 2 more copies. Keep one for yourself, but be sure to tell your spouse where it is (or make sure your spouse is involved in the whole process of creating and storing it!). Then give one to someone you trust such as your sibling, a grown child, best friend, or lawyer. Then mail the third copy (you can instruct them to keep it sealed) to someone you trust who lives in another town (this is in case of natural disasters – so if you are in a hurricane, flood, or earthquake, this person is unlikely to have gone through the same disaster and will have your crib sheet intact).
That is the quickest, easiest way to prepare for death or trauma. It will help your family immensely and alleviate much stress in an already stressful and sad time. However, there can still be problems and complications or reasons your family cannot get to the funds you have left them (i.e. they have no idea you have an old retirement account from a company you worked at 30 years ago). There are reasons a lawyer can throw out your will – say you worked up a “do-it-yourself” will and didn’t realize that they can be disregarded in court. A very good way to show your family you love them and want to make sure they are prepared is by completing a more detailed workbook with all of your financial information. We have created just such a workbook, The Bucket Book. While it can seem a daunting task at first, once you walk through the steps, you will be glad you did. Imagine the peace that comes with knowing you have completely organized your finances – if not for your family, then for yourself so you know what you have and where it is located. We encourage you to take some steps towards financial organization and preparation. Again, we understand that it is not something people normally like to think about, but it is something that does happen. And you can take action to make sure that you and your family are prepared!
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