Firstly, store your legal papers somewhere safe, such as a safety deposit box at your bank or a fireproof lockbox. Make sure that someone responsible, such as your executor, knows where the will is stored and where the keys are to the safety deposit or lockbox.
Your attorney will also have a copy of the original will.
What about all the extras in your home? Who gets those?
Our attorney told us to keep our will as simple as possible and keep it out of probate (regarding Missouri probate laws). So, we were able to compile a list, separately, of items within our home that we wish to be dispensed to specific people. Our executor is responsible for seeing that this gets done.
If you have a huge estate, you will need to take stronger, more legal measures for distribution of household items. Smaller estates in families where dispersement should be fairly simple can utilize the list method of logging who gets what from the estate.
Go through your home and determine what items are of sentimental or dollar value and what should be left to specific loved ones. Make a list of that dispersement starting with instructions for your executor at the beginning.
I also prepared a history of any and all items either on the dispersement list or simply those that have sentimental value, i.e., family heirlooms.
With things in the family being passed down from generation to generation, the stories behind the items often get lost very easily. My mother kept good records with regards to old family heirlooms as did my sister, who went one step further and made her list digital.
To compile a list of family heirlooms, simply begin a document, list the item and follow that with the family history: where did the family get the item, the history prior to the family ownership, and any other pertinent information. Plus, it is a good idea to look each item over carefully. For furniture, pull out drawers and/or the furniture away from the wall and look for manufacturer's stamps, year of manufacture and any other important information. You should include this on the item's biography and also shoot a photo of it. Additionally, one can Google the item and possibly find an approximate value for it.
Whether you are interested in the "value" of an heirloom or not, Googling the item can help provide interesting biographies on the heirloom, which can assist the executor of your estate or recipient of said heirloom in making a decision as to whether to keep it or not.
Never take it for absolute truth that an item is not worth anything. You just never know what treasure you have sitting in your basement, garage, attic or closet. You also never know who in your family might just want an item, so if you want to get rid of something while settling an estate, you can search out family members who might find the piece a treasure.
Keep this list digitally – there are plenty of Online sites that offer free storage (always worthwhile in case of a fire or crashed computer). Make sure to print a copy to keep with your wills and update every few years.
Lists and more lists
My sister was single so she had innumerable lists for every conceivable thing in her household. I used to think she spent far too much time compiling these until I had to deal with her estate. Now I owe her thousands of kudos for that lesson in planning.
The 21st century family unit is no longer the same as it was 100 years ago. Nowadays not every family includes two parents. Most often, the adults work and as a nation, many families are in debt up to their eyeballs.
In other words, life is much more complicated today than it was 100 years ago. That being said, when preparing your estate, think about what the person being left behind will have to do if something happened to you – and ask yourself a few questions:
• Does your survivor know what bills you owe, where they are and how you pay them?
• Does your survivor know what insurance policies exist?
• Do you have assets such as IRA, 401K, stocks and does your survivor know about them?
• Do you have a computer, tablet, ebook or other electronic equipment?
• Do you own a home? What repairs have been done – dates, expenses, materials used, company?
• History of the household can be invaluable for an estate, especially when having it reappraised for an estate or when the beneficiary has to have insurance rewritten.
These are just a few of the things you will need to consider. Prepare all areas of your estate with the idea in mind that someone with zero knowledge about your finances, assets, computers and home may be stepping in to handle everything – so make it easy for them.
• Make a list of all passwords and security for all online access from making purchases, warranties, ebooks and tablets to insurance, financial advisors, banking and bill paying. It will be up to that person to close out all accounts, including your email, and/or transfer ownership of said areas to their name or the beneficiaries name.
• Store a copy of this list digitally and consider using an Online free storage bank, along with making a copy to keep with your estate papers. Be sure to update this list several times a year.
• Comprise a checklist of all bills you pay regularly: this includes name of company, date due, approximate payment and balance at time of making the list. Part of every executor's job is to pay of all debt before any monies can be distributed to beneficiaries.
• Keep a neat and orderly computer: Make sure your computer, or other electronic device, on which you keep bill-paying information is neat, orderly and easy for someone to access in case of an emergency.
• List of people to be notified: I utilized my sister's address book for this and it was simple enough. However, considering the use of social media today, we have more acquaintances from work, friends and through social media that notification of death can be overwhelming. If there are special people you want notified, then be sure to make a list, along with emails or mailing addresses for your executor to access.
• List of all household expenses, etc.: My sister had a file box containing a history of everything done on the house from the most recent roof to appliance installations, plumbing and electrical repair, along with the businesses used and notes about the workmen's capabilities. She even had samples of paint codes used when she painted and renovated each room.
• Taxes, property and personal: It is very helpful, especially if your estate goes into probate, to have recent property tax assessments and personal income tax files for the executor to readily access.
Life can throw us some unexpected curve balls. It's better to plan ahead than leave someone you love holding a complicated life you've created with no directions on how to tackle it.
You never know when you walk out the door each time whether you will return home at the end of the day. It's best to plan for the unexpected. A local funeral home's motto is, "Plan ahead and leave well."
I couldn't have said it better.
Insurance policies, financial planning ... beneficiaries
Most of us have insurance policies through purchasing them ourselves, work, automobile and other avenues. Many of us have 401K's, IRA accounts and possibly financial advisors as well. If you have a financial advisor, you are one step ahead. If you don't – I recommend getting one.
Financial Advisor: A financial advisor will provide invaluable advise for handling your invested money and planning for your future. An advisor can advise you, without prejudice, what you need to do in your life to plan for retirement or your beneficiaries.
Beneficiaries: Make sure you have these in order. What beneficiaries you chose for insurance policies 20 years ago may not be the same now. Be sure to have a list of all insurance policies and their beneficiaries, as well as all investments and their beneficiaries. An executor will need this list.
Payable on Death: Usually insurance policies, investments, 401K and IRA accounts include a first and secondary beneficiary to be listed. Many investment companies require a power of attorney to be appointed as well – this does not have to be the same person as the POA you state in your will. Payable on death means the monies can be distributed according to your beneficiary designation once a death certificate has been provided. Be sure to find out what each organization requires. Some may require just the death certificate, while others require medallion signature guarantees. These are not done by all banks, so you will have to search for one that does and if you are not a customer, there will be a fee.
Banking: A joint checking account means your significant other – or another person of your choosing, can access your money in the event of your death. This is helpful so that your loved one is able to continue paying his/her bills, rent, utilities and pay your estate expenses, such as funeral and burial.
Power of Attorney: It is important that anyone appointed power of attorney is aware that this appointment ends at the moment of death. Appointing someone as power of attorney does not mean they can use your bank account to pay your bills or other expenses after your death unless they are a joint account holder, or until the death certificate has been released and estate is in probate.
Planning your own funeral
No one wants to think about this dreaded part of life. We certainly won't be around to be happy or sad with the funeral our loved ones hold for us, but it's best to plan ahead and leave instructions for your executor on how to handle your final hurrah.
Funeral: If you can afford it, purchase a pre-paid funeral plan from the funeral home of your choice. This is a legally-binding document that you pay for ahead of time. This means that, hopefully, by the time you die, your loved ones do not have to cope with paying for your funeral or deciding upon all the things that are tied to it. When a person dies, whether it's sudden or after a lengthy illness, family members are in no shape to be making decisions about what casket to purchase, programs, photos, memorabilia, etc. If you can't afford to set up a pre-paid funeral plan, then make your wishes known in a simple letter to your executor and keep it with your legal papers. The following are things to consider:
• What kind of coffin, vault and interior cloth? These can be outrageously expensive. Keep in mind that dead is dead and, frankly, no matter how much money you spend, it's all going into the ground and will never be seen again after the funeral. Don't let anyone talk you into purchasing more than you need. A vault with a 100 year guarantee is ridiculous.
• Services you will want from the funeral home/church: Wherever you wish to have your funeral held should be part of your funeral planning list. The visitation is part of this service as well. Open or closed coffin, hairstylist, make-up, jewelry, final clothing – all of these decisions have to be made at some point. Do you want to pay extra for a limo or drive your own car? If you don't have enough people as pall bearers, then the funeral home will provide them – for a fee.
• Funeral services: You've decided where you want your funeral to be held. What about scripture? Music? Minister? Having been raised in the church, my sister was very specific about what hymns she wanted at her funeral and what scripture to be part of the liturgy. Usually this can be conveyed to the minister holding the service and he/she will work with you to the best of his/her ability and within the confines of the church policy.
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