ESTATE PLANNING / ESTATE ORGANIZATION

The financial consequences of failing to keep your legal and financial documents in order can be significant. As pointed out in a recent Wall Street Journal article, state treasurers currently hold $32.9 billion in unclaimed bank accounts and other assets. Additionally, some of the country’s largest life insurers are under investigation for failing to pay out unclaimed life policies to beneficiaries. Insurers say they are behaving lawfully and under their policy contracts are required to pay a claim only when beneficiaries come forward. Will your family members reap the full benefit of your estate planning efforts, or will they miss out simply because they cannot locate all of your important legal and financial documents in a timely manner? Of course, you don’t have to keep every single scrap of paper, but the WSJ offers a pretty comprehensive list of the 25 most important legal and financial documents you should compile, and make sure your heirs can quickly access, to include: 1. Will 2. Letter of instruction 3. Trust documents 4. Housing, land, and cemetery deeds 5. Escrow mortgage accounts 6. Proof of loans made and debts owed 7. Vehicle titles 8. Stock certificates, savings bonds, and brokerage accounts 9. Partnership and corporate operating agreements 10. Tax returns 11. List of bank accounts 12. List of all user names and passwords 13. List of safe-deposit boxes 14. Durable health-care power of attorney 15. Authorization to release health care information 16. Living will 17. Do-not-resuscitate order 18. Personal and family medical history 19. Life insurance policies 20. Individual retirement accounts 21. 401(k) accounts 22. Pension documents 23. Annuity contracts 24. Marriage license 25. Divorce papers The original article goes into much more detail with each, and whether you have or need each of these documents will depend on your individual situation and the various legal facets of your life, but it is a list that commands a certain attention. By putting this all together you help your loved ones to more quickly and easily pick up the pieces and put your plan into operation. Reference: The Wall Street Journal - Saabira Chaudhuri (July 2, 2011) “The 25 Documents You Need Before You Die