Having an estate plan is important. But there’s another question that doesn’t get asked nearly enough:
Do the people you love know what to do with it?
Imagine something happens and your family suddenly needs to step in. They know you met with an estate planning attorney a few years ago, but they don’t know where the documents are.
Your daughter thinks your brother is your power of attorney. Your brother thinks it’s your spouse.
No one knows which bank holds one of your accounts.
There’s a life insurance policy somewhere, but no one is quite sure which company issued it.
And the password to the computer containing half the information they need? Nobody has it.
This happens more often than you might think. The good news is that your family doesn’t need a detailed briefing on every dollar you own or every decision you’ve made. But there are a few things they should know.
1. Who is in charge?
The people you’ve named to serve as your executor, trustee, financial power of attorney, or healthcare agent should generally know they’ve been chosen. It’s also worth making sure they’re still willing and able to serve. Someone who was the perfect choice ten years ago may not be the right choice today.
2. Where are your estate planning documents?
Your family doesn’t necessarily need copies of everything, but at least one trusted person should know where the originals are stored and how they can be accessed. A perfectly drafted estate plan isn’t very helpful if no one can find it.
3. Who should they call?
Make sure your family knows the name and contact information of your estate planning attorney and other important advisors. When something happens, having a knowledgeable person to call can eliminate a tremendous amount of confusion.
4. Do they know what you own?
You don’t have to hand your children a spreadsheet showing your net worth. But someone should be able to locate information about your bank and investment accounts, retirement accounts, insurance policies, real estate, business interests, and other significant assets. Otherwise, assets can be overlooked entirely.
5. What about your digital life?
Think about how much of your life now exists behind a password.
Email accounts. Online banking. Automatic payments. Cloud storage. Social media. Photos. Cryptocurrency. Subscription services.
Your estate plan should address digital assets, but your family also needs a practical way to locate the information they’ll eventually need.
6. Have you talked about the decisions that matter most?
Some of the most important conversations have nothing to do with money.
If you couldn’t speak for yourself, would your healthcare agent understand your wishes? If you’ve made an unusual decision in your estate plan, would explaining your reasoning now prevent hurt feelings or conflict later? You don’t necessarily need a formal family meeting. Sometimes a simple conversation is enough.
Give Your Family More Than Documents
Estate planning is ultimately about making a difficult time easier for the people you love. The legal documents matter tremendously. But so does what happens when those documents are actually needed.
Your family doesn’t need to know everything today. They just need to know enough that, when the time comes, they’re not standing on the sidelines wondering what they’re supposed to do next.
If you’re not sure whether your estate plan gives your family the guidance they’ll need, schedule a consultation with our office. We can help you identify what’s missing and make sure the right people know what they need to know.