As many estate trustees administering an estate recently will tell you, it’s becoming increasingly difficult to find and secure estate assets.
This is the case for many reasons. With the rise of digital banking and assets, individuals are holding assets across a greater number of institutions, making it more difficult to find these accounts. Even spouses may not know exactly what assets their partner holds. According to a Toronto-Dominion Bank survey, 49 per cent of millennials had no common accounts with their partners. As well, with the advent of paperless statements and no guaranteed access to a person’s digital accounts, an estate trustee may have no paper trail whatsoever to investigate.
What is the solution? Some people are turning to an old fashioned method of compiling all important documents in a ‘When I Die” binder and informing their estate trustee of where this resource may be located.
What Documents Should Be In A “When I Die” Binder?
The beauty of this simple approach is that it is adaptable to both simple and more complex estates. This binder could include documents such as:
- A letter to the estate trustee summarizing any documents contained in the binder
- Copies of wills and testamentary instruments as well as Powers of Attorney
- Life insurance policies with broker contact information
- Bank and investment account lists with branch information
- Copies of IDs
- Contact information for next of kin, close friends, beneficiaries, and key individuals (lawyer, financial advisor, etc.)
- Copies of any agreements entered into, such as lease or business agreements
- Marriage or divorce certificates
- Funeral plans
- Information about digital assets and accounts
- Password manager information (for more information on this topic, see my article on 3 Tools to Transition Digital Assets and Accounts to an Estate Trustee After Death)
- Pension or retirement benefit information
- Recent tax returns, including contact information for the accountant or tax preparer
- Pet care instructions
The possibilities are endless and assuming the estate trustee has instructions on where to locate this binder, it will make the administration of the estate much easier.
If you are considering adopting this approach, it is important to keep security in mind when deciding where to store this binder and the contents. Store originals of documents in a safe, such as a fireproof safe, and keep copies of documents in the binder. As well, periodically review and update the binder to ensure the information is current.
This binder could be an invaluable resource for your loved ones, helping to ease the burden of navigating legal and financial responsibilities during a difficult time.
Thanks for reading,