Are Your Affairs in Order; would anyone know what to do?

Financial: 

Although you may be hesitant to divulge your financial information, it must be available in the event you are suddenly incapacitated by injury or illness. Your TFFM or designated professional should at least have knowledge of and access to funds for your immediate benefit. Consider making him/her a signer with you, on a joint account designated for this purpose. In the case of a sudden death, it can take up to a week for a Death Certificate to be issued, and considerable time for a Will to clear probate. This must happen before any ownership or responsibility can be transferred, or funds made available for medical and/or funeral expenses, so it’s imperative you have planned ahead. If you haven’t done so already, you might consult with your accountant, financial advisor and/or lawyer to explore your options.

You’ll need to have available, a complete list of all your assets and financial holdings, including the name and contact information for the financial institution, type of account, account number, and current account balance. It should include the name and contact information for any financial advisor, broker or manager who personally oversees your accounts.

Money in: All your sources of income need to be listed, including how, where, and when the funds are received, with account numbers and contact information for the person or entity that administers the disbursements to you.

Insurance Policies: Note the existence of all current insurance policies you hold (auto, home, personal property, life, health, and long term care) and where the policies are kept. Be sure your TFFM knows what health insurance coverage you have, including prescription drug coverage, and where the plan information and “proof of insurance” cards can be found. Keep this documentation current.

Money out: Don’t let your good credit rating be destroyed by non-payment of your bills while you’re incapacitated. Document each account you must pay on a regular basis. Include the name of the account, the account number, if and how you receive statements, (mail, online) and how you pay them (personal check, bill pay, charged to credit card, automatic withdrawal). Include mortgage and home equity loans, if applicable, and payments for insurance policies and property taxes for your home and automobiles.

Your Credit Cards: For each credit card issued to you, the following information needs to be documented:  

• Issuing bank, type of card, account number, and expiry date.
• How many cards were issued and where they are located.
• Name shown on the card and billing address including zip code.
• Cardholder’s phone number associated with the account.
• Answers to cardholder identification questions, e.g. mother’s maiden name.
• If you receive electronic statements and account notifications; at what e-mail address, with the user ID and Password for both the e-mail account, and the on-line credit card account.
• Approximate balance due on the card.
• Whether you pay in full each month or payments over time, and if you pay the minimum due or a set amount.
• How monthly payments are made; personal check, Bill Pay, or automatic draw from your bank account.
• All companies that debit your credit card automatically, e.g. toll tag, TV cable, and internet.

Your TFFM will be unable to administer these accounts unless he/she is an authorized user on the account, or has your online User ID and password.

Note: If you use your computer to access your financial accounts, be aware those web addresses, user IDs, passwords, and answers to identifying questions etc., must be available to your TFFM for every on-line account. Don’t forget your computer “sign on” and password. This information needs to be kept current, and can be filed in your bank safety deposit box, or other secure location, to which your TFFM will have access when necessary.

Accounting: 

Organized information not only works for you, but will enable your TFFM or accountant to pay your bills and maintain your good credit if you’re incapacitated. Additionally, the Executor of your Will, will be able to quickly and effectively settle your affairs if you’re deceased. Many companies will not talk with anyone but the account holder, or an “authorized user”, so it’s a good idea to add your TFFM as an authorized user to as many of your accounts as possible. Otherwise, it can make it extremely difficult to get anything resolved if you are not available.

Keeping good records is also important for ensuring your tax return is prepared correctly, and you can take advantage of all the allowable deductions available to you. Should the IRS have any questions, you’ll be able to quickly produce supporting documentation. Also, if your tax returns are prepared by your accountant or tax service, providing complete and organized paperwork will save them time and lower your costs. Keep everything pertaining to your current year tax return in one place. Based on previous years’ returns, you already know what information you’ll need at tax time. If you have large medical expenses, keep supporting invoices, receipts, mileages, etc. Keep good records of all investments and stock transactions, and if you change brokers, remember you must always keep your prior broker records to determine cost basis when you sell stock. Note who prepares your tax returns, and where prior year returns and supporting documents are kept.

Make separate files for all your current accounts, so you can keep everything in its place while it’s pertinent, and until it can be discarded. Some records not pertaining to tax returns can be useful for other reasons and shouldn’t be destroyed. For example, documentation of home improvements and repairs are helpful if you are selling your home, and invoices for purchases of jewelry, computers, electronics, and other expensive items will help your insurance company determine value if you should suffer a loss. Always confetti shred papers containing personal information, before discarding or recycling. The following link will give you valuable information on record retention, and help you decide what records are safe to destroy, and when.

http://www.irs.gov/publications/p552/ar02.html
 

Legal: 

Advance Directives are documents that allow you to make legally valid decisions about your future medical treatments and care, if you are unable to make these decisions or choices for yourself. They are signed in advance, and will go into effect when you can no longer make your own health care decisions. If you have a Living Will, a Medical Power of Attorney, a Mental Health Treatment Declaration, or an Out-of-Hospital Do Not Resuscitate Order, make sure your doctors, health care providers, and your family have copies, and the originals are kept in a safe place where they can be accessed quickly by your TFFM, when and if needed.

Please, please, please, do not die intestate. “A will makes sure your desires are known, that your choice to handle your estate is respected, and that undue expense and hardship does not fall upon your family when you die.” - David Pyke, “Who Needs a Will”. Please read his article in our Articles From the Experts section.

Before you make a will, the individuals who, by the terms of your will, will be required to perform a duty, or take on a responsibility, (executor, guardianship, pet care, etc.) should be made aware of your intentions, and given the opportunity to discuss, approve, or disapprove of their involvement.

Having made a will, be sure to keep it up-to-date. Your assets, tax laws, estate planning techniques, and family situations can change, and your old will may no longer represent your wishes, or be in the best interest of your beneficiaries. State laws differ, so if you’ve moved, your will may not be valid.

Make sure beneficiary designations on all asset accounts and insurance policies are officially on file, and currently comply with your wishes. These are effective immediately upon your death and will take precedence over the beneficiaries in your Will.

Although you’ve included them in your will, your personal preferences for your “final arrangements” must be known ahead of time. The following questions need to be discussed with your TFFM and family members, answered and documented:

• Have you made and/or paid for any advance funeral plans, and with whom?
• Do you have a preferred funeral provider?
• Funeral service; public, private, viewing, open casket, burial, or service only?
• Will religious beliefs affect your funeral arrangements, and how?
• Will your remains be interred, and if so, where?
• If cremated, what are your preferences for placement or disposal of your ashes?
• Is an autopsy acceptable to you if deemed necessary?
• Would you allow your organs/remains to be donated, or used for medical research?

Medical:

Whether or not you’re able to communicate with emergency personnel and/or medical staff, the more you’ve recorded about your past and present medical conditions, the easier it’ll be for you to receive prompt and effective treatment. This information is also helpful at an initial visit to a new physician or health care provider. Always have written documentation of the following available:

• Your health insurance coverage and cards, both Primary and Supplemental. Be sure your TFFM has copies, and can provide your date of birth and Social Security #.
• All foods, materials and medications you are allergic to, including those medications which produce serious side effects and should be avoided.
• Names of all prescription medication you’re taking: dosage and time of day taken, prescribing doctor, and name, address and phone number of the pharmacy that fills/refills your prescriptions.
• Non-prescription drugs and supplements you take on a regular basis.
• Medical conditions you are currently receiving treatment for.
• A record of your medical history, including dates of surgeries or serious illness.
• Immunizations and dates administered.
• If you’ve signed any Advance Directives, which ones and where the originals can be found. (An original of your Out-of-Hospital Do Not Resuscitate Order (OOH DNR) must be available to emergency personnel/medical staff at the scene.) Relevant copies should be kept on file in your doctor’s office, and with your TFFM. Through advance directives, you can make legally valid decisions about your future medical care. See Legal section above.
  

Social:

Your close friends and relatives would like to know, if you should become seriously ill and/or die, just as you would wish to know the same of them. Those who are taking care of you and your affairs will find it very helpful to know who you would wish them to notify, and how they can be reached. A simple list of names, with contact information, (address, phone number or e-mail) and what relationship the person is to you will make this much easier to accomplish. Don’t forget to include your religious affiliation, alma mater, and any groups, clubs and organizations you may belong to, with the appropriate contact information for each.


All legal documents, and those containing valuable, personal information of any kind, whether hand written or produced by computer, should be kept in your bank safety deposit box, or secured under lock and key at all times. Protect your computerized spreadsheets and documents with passwords, and discuss all this with your TFFM or designated professional so they will have access when the time comes.

Be secure in the knowledge that whatever happens, someone will know what to do.