Paperwork is Paralyzing
The important information you need pulled together in one binder so someone else can handle your affairs when you cannot
“Get your affairs in order.” You usually hear that on television when someone has been given a terminal diagnosis. I suggest you don’t wait for that moment to come (G-d forbid) before you pull together all the important information someone needs so they can take care of things when you are gone or incapacitated.
Paperwork in general can be overwhelming, and the work increases exponentially when someone dies. Years ago, I had a friend with a young son who I assisted with organizing her home and design business. Her husband was an accountant and naturally took care of all their bills and finances. When he died suddenly, all she could do was take care of her child and her clients. I dealt with all the paperwork and literally keeping the lights on because she had never had even seen an electricity bill, let alone paid one. It was a full-time job. Because the husband had his own firm, and it was just him and his partner with no HR department, there was no one to ask about life insurance, health insurance, and other personal accounts. I had to search both his professional and his home office to find important documents, including birth certificates, marriage certificate, social security cards, insurance policies, title to the cars, brokerage statements, open credit accounts, and the like. That slowed down the process of applying for benefits and gaining access to liquid assets so they had money to live. I had to order death certificates and send them out everywhere to close accounts and switch over names.
The Green Binder
From that experience, I put together a 3-ring notebook with plastic page protectors which contained all the important documents in her life, and I encourage everyone to do the same. It’s important that the binder is easily identifiable with a color not white or black, so you can tell someone, “It’s all in the green binder in the file cabinet,” or “look for the red binder at the bottom of the bookcase in my office.” This binder keeps all your important papers together in one place and makes it easy to have all the information you need when you are “taking care of business”. You would take it with you if you had to evacuate, and not miss a beat even if you could never go back home again. Taking time now to put this book together will reduce so much stress if you have to take on more paperwork than you usually do to keep things running.
This will also be the book that whoever is managing your affairs needs if you become incapacitated or die. Your power of attorney (spouse, trustee, executor, fiduciary, adult children, trusted friend or family member) needs to know where the binder is located, so they begin taking care of things immediately. Having the binder reduces the need to search for documents containing important information, and saves the worry there’s something that might be missed; for if it is not contained or mentioned in the binder, you might not know that an account or document exists. If it is you managing the estate after your spouse or loved one dies, you will appreciate having all this information in one place so you don’t have the added burden of pulling it all together.
Information and Documents You Need
Think of all the questions on forms that need to be answered, and the information and authorization you need to close an account. That is the information you need for the binder. In some cases, you don’t need the original document in the binder but at least a copy or a copy of the most important page. For example, you just need a copy of your driver’s license and the auto insurance policy declaration page. For all your financial and online accounts, a page showing account number, contact information and online credentials (log-in and password) for access is enough. The rest you can leave in your files.
Update the information regularly, including your log in and password for each online account you have. Also contact information for your spouse, children, family members, power of attorney, fiduciary, attorney, accountant, financial advisor, insurance agent, realtor, employer, and people who provide a service at your home.
Identity documents
Birth certificate
Passport
Social security card
Real ID or driver’s license
Military discharge papers
Marriage certificate
Dissolution of marriage certificate
Legal name change
Immigration status
Work permit
Keep the original, make a copy, and have several official copies of certificates on hand to send out. If you are managing the estate of another, you will need to order at least a dozen death certificates so you can send them to entities that require them.
Legal documents that indicate your wishes
Power of attorney
Durable medical power of attorney
Advance medical directive
Will
Trust Documents
Custody agreement
Adoption and/or legal guardianship papers
Everything should be signed and dated (notarized if required), and you should have the original and at least one hard copy. A trustee will probably need a dozen or more copies of power of attorney and certificate of trust documents.
Financial information
Checking, savings, brokerage and retirement account numbers and contact info
Online login credentials for each account and/or financial institution
Copy of debit card(s) (front & back) with pin numbers, and
Blank check with routing number for each checking account
IRS payment plans
Treasury account information (if you have bonds)
Time share information (account number & location)
Account numbers, billing information and online credentials for all open credit accounts
Auto loans
Mortgages
Lines of credit
Other loan agreements
Credit cards
Location of hard copies and/or digital copies of the last seven years of tax returns and contact information for the person who did them.
Insurance information
Health
Life
Accidental Death and Dismemberment
Disability
Long Term Care
Automobile
Home
Rental
Earthquake
General Liability
Umbrella
Pet
You need the name, account number, contact information and online credentials for each account, plus the location of the policies and contact info for the insurance agent.
Vehicle Information (for each one you currently own)
Lease or sale agreements
Title and Registration
Proof of Insurance and Declaration Page
Home documents for homes you currently own or rent
Closing Escrow statement (copy)
Mortgage statement (showing escrow account info if you have it)
Property tax statement with assessed value
Rental agreements with landlord
Renter contact information
Title as currently written
Your trustee or executor will also need to know the appraisal value of each home at time of death.
Government agencies from which you receive benefits
Eligibility letter, account number and login credentials for
Social Security
Medicare/Medicaid
Veterans Adminstration
Other social service programs
Copy of EBT card and pin number.
Advance funeral arrangements
Contract and payment plan with mortuary and cemetery including plot number(s) and which services/goods are included (coffin, headstone, burial, cremation, urn, perpetual care, etc.)
A list of funeral wishes to be honored.
Online Presence
Account name, log in and password for:
Websites
Email accounts
Social Media accounts
Blogs
Channels
Subscriptions
Streaming services
ID monitoring services (i.e. Lifelock)
Medical and DNA Information
List of current prescriptions and medical conditions
Eyeglass prescription
Contact Information for primary care physician, specialists and dentist
Cord blood bank information
IVF embryo storage information
Genetic testing company account number, online credentials and reports
Fingerprints
DNA sample - Years ago as part of a child safety campaign, I saved the fingerprint and strands of hair of each of my kids to help identify them through DNA if necessary.
This Is Your Homework
So now you have your homework for the month. If you don’t have a “green binder” yet, I guarantee it will be helpful to put one together to give peace of mind to you and your loved ones. If you already have one, take this time to update it, especially with log-ins and passwords. While you’re at it, why not start to clear your files of information that is outdated or can be found online? The New Year is a great time to clean out the old and make room for the new.
Do you have anything else to add to the list? Please let me know! And if you haven’t read my other posts, please do. They are excerpts of chapters from the book I am writing, which is almost done! I’m looking for feedback so if you would like to help me edit the book, please leave a comment or send an email. Thanks!