Most of us don’t like to think about what would happen if we were to suddenly die or become disabled. Who would take care of our spouse, our children, our pets, or handle our financial affairs? Where would they begin? Would they know where to find bank accounts, insurance policies, stocks and bonds, real estate deeds, or automobile titles? Have we left clear and specific instructions, in the form of a will and or trust, as to how we want our affairs handled?

When we fail to organize our affairs and state our wishes, we place an undue burden on our families and hand over control to the probate courts.

Why not begin to organize your life as a gift to those who will have to step in and handle things in the event of your disability or death? Here are some basic steps to take now.

Create a Will. This will not prevent your estate from going to probate but it’s better than not having anything at all. There are several software programs available to help you create a Will and you can even write one by hand. Make sure you have it witnessed.

Create a Trust. If you have assets such as real estate, retirement accounts or stocks and bonds, you’ll probably need a trust drawn up by an attorney. A simple trust might set you back a couple of thousand dollars but it will save money in the long run and your assets will be able to pass directly to your designated heirs without involving the courts. A trust is like a vessel that holds your assets so make sure that all your assets get transferred into the trust.

Create an Information Binder. Buy a three ring binder and a set of tabbed dividers and organize your vital information. Gather together your will, trust, birth certificate, military service record, social security information, bank accounts, credit card information and any other vital information that someone will need in order to manage your affairs. And, don’t forget to list all your on-line accounts and passwords for things like eBay, PayPal, online banking etc.  If you’re not comfortable writing down all your account numbers and would prefer to keep them in a more secure location such as a safe deposit box, then use a tabbed section and write down the location of the information and how to access it.

This type of information binder can be vital, not just in terms of assisting your loved ones after you’re gone but also in the event you have to evacuate your home due to fire or flood. You can just grab it and go.

Designate Special Heirloom Gifts.  Take notice if there’s a special something that one of your children, friends or family members particularly like. Make a list of those items, who gets what, and put it in your binder. Better yet, gift some of the items while you’re still around.

Talk to Your Children and Loved Ones. Let your family and friends know what you want or that you have prepared documents stating your wishes and where to find them. Communication is key to peace of mind for you and those you have designated to handle your affairs.

You don’t have to do all of this at once but I encourage you to begin the process. I have seen families torn apart over money and things due to unclear or non-existent instructions from a deceased loved one

Failure to create a will and/or trust means that the courts will settle your affairs giving less control to your loved ones. Probate is time-consuming, expensive and totally avoidable.

Give your loved ones the gift of organization. It’s a kindness they’ll always remember.

If you need help organizing your documents or would like a referral to an attorney who can help you create a will and trust, SortedLives can help.  Call us at 707-934-7144.