Investor’s column: Beyond the estate plan, a final instructions letter

Your estate plan is finally complete. You’ve met with the attorney who has drafted your wishes in writing, and you’ve executed the documents properly. You’ve given copies to the appropriate people, which means you’re done, right?

Not quite.

There’s one more step to complete, which may be the most important one of all.

When you complete your estate plan, that’s the most practical time to also write a “final instructions letter” — an informal document (not legally binding) that does two big jobs:

• Outlines the location of all your important papers;
  
  
• Documents how you would like your personal affairs handled when you die or are incapacitated.
  
  

Effectively, it’s a “cheat sheet” for anyone involved in settling your affairs and provides them with handy reference into your financial affairs and wishes. These are important details that can change quickly and are usually impractical to put into a will.

So what kind of details should go into this letter? At minimum:

Location of important personal papers: List out the exact location of documents such as deeds and mortgages, vehicle registrations, insurance policies, tax documents, birth/marriage certificates, diplomas, military papers, etc., as well as how to access these documents if under lock and key elsewhere.

Inventory of bank accounts: List all bank accounts by name of institution, branch address and type of account.

Listing of credit cards: Make a list by issuer and card number (or lay all your credit cards on the face of a copy machine and make a copy to include with this letter).

Investment accounts: Note where your investment statements are located. Also note the names/contact information of any financial advisers/planners you work with.

Also recommended:

Website logins and passwords: This is critical. Provide a list of key website logins, pins, and passwords you use - or indicate where they can be found. This includes general computer logins, email accounts, online banking, retirement, and investment services. Don’t forget Facebook, LinkedIn and Twitter. Give the person(s) you trust the ability to disable these accounts for you.

Who to notify at the time of death: Make a list of specific people/institutions that need to be notified at the time of death: lawyer, trustee, executor, accountant and pension authorities, like Social Security. Also list out names and contact information for relatives and special friends who will want to be notified of your incapacity or death.

Funeral arrangements made in advance: If you’re considerate enough to have made funeral arrangements ahead of time, list the contact information for that funeral home so your relatives can follow your instructions — without having to guess.

Address this final instruction letter to the person most likely to take over your financial affairs after you, be it a spouse, adult child, trusted friend, attorney or other executor. Consider reviewing this letter with them ahead of time.

Once completed, make several copies: for your attorney or executor, to attach to your will, and one to keep in the place your family would look for it first. Be sure to update this letter periodically: It’s much easier than writing the first letter.

Documenting these final instructions is never easy, but it could save an immense amount of problems for the trusted individuals who must take over your financial affairs and/or wrap them up for you.

So if you truly want to take care of your family, seriously consider completing this last step for them. They will be incredibly grateful that you did.

Karin Grablin, CPA, is with SRQ Wealth Management, 1819 Main St., Suite 905 in Sarasota, and can be reached at 941-556-9004 or karin@srqwealth.com.

This story was originally published July 16, 2018 at 10:42 AM.