Section I, Planning for Yourself and Your Beneficiaries, Continued
(5) Financial Recordkeeping
This is my final piece to Section I, regarding your personal financial readiness. I suggest that you gather and organize your important financial information into one or two convenient three ring binders, and store them in a safe place. Other items to file away and safe-keep are mentioned at the end.
(A) Contents of your Financial Notebook and Estate Plan Binder
Truth be told, I got my notebook in order before a shoulder surgery several years ago. So if it makes you feel better, my binder is somewhat obsolete now, and needs a fresh update. So we are in this together!
The Cover
Mine says "Financial Notebook and Estate Plan (our names) & Date"
Organization of Binder Materials
Below are some general categories that may reflect parts of your financial constellation, and if not, add your own depending on whatever financial or other activities you may want to include. I suggest getting numbered divider tabs to separate each section in your binder, and to link to an Index Page (Items 1-16 below).
(1) General Narrative
I threw this in because the book seemed to need some sort of "formal" tone. It reads:
"The purpose of this notebook is to assist in the administration of the Estate of "Me" and "Her" in the event of their death(s), and provide information (while still living) as to our finances, insurance, commitments, etc. should the necessity arise for us to need assistance in this area."
(2) Personal Information.
General Information
Health Information
(3) In the Event of Death
(4) Asset Summary, including contents of safe and safety deposit box. Good to have locations, amounts, serial numbers, estimated values, etc. Spreadsheets (Excel, e.g.) or other listings (Word, e.g.) work good for this as they are easy to update.
(5) Passwords. Password Template
(6) Banking information (copy of recent statement, e.g.)
(7) Bill paying information (budget, copies of recent bills (one per vendor (i.e. cell phone, utility, etc.)
(8) Social Security information. (copy of statement, e.g.)
(9) Retirement information. You may need several tabs depending how many accounts you may own. In fact, you can, and I do, have a separate binder for retirement investment accounts. Include contact information & account #'s.
(10) House information. Could include property tax information, irrigation district info, HOA dues & information, etc.
(11) College or other loan information. Recent copies of statement with amounts owed, minimum payments, account numbers, etc.
(12) Insurance information (cars, boats, house, life, etc.). Contact information of agents.
(13) Church Information. Could be your giving amounts, or other commitments.
(14) IRS Information. You could add a copy of the previous year's 1040 here.
(15) Vacation & Entertainment (season tickets, cabin rental info, Airbnb, Condo, etc.).
(16) Any other information you want to include.
***********************************************************************************************
(B) Other Recordkeeping Suggestions
What to Save & Record Retention
I tend to save paid invoices for longer than I should before shredding. Wadded in groups, stuffed in a bag. I don't know if there is a good rule of thumb here. Routine bills could be tossed when the next one arrives showing that you have no previous balance. Other bills such as major purchases (vehicles, jewelry, firearms, electronics, maintenance agreements, insurance policies, repairs to your house, car, etc.) should be held onto as long as you have that asset. I would put this information in folders in a filing cabinet, or a safe.
Important items to put in secure place like a safe
I also have a box in the closet full of user manuals. Same retention rules apply here.
***********************************************************************************************
Final words regarding Recordkeeping
So, yes, admittedly, getting your information rounded up and maintained is a bit of a chore. Once set up, you can keep your binders updated as you go, or maybe once a year get them updated and spiffy. Like life, your binder of financial information will evolve over the years. Being organized will give you a certain amount of peace to have your financial information squared away. And remember, this is fun!
(5) Financial Recordkeeping
This is my final piece to Section I, regarding your personal financial readiness. I suggest that you gather and organize your important financial information into one or two convenient three ring binders, and store them in a safe place. Other items to file away and safe-keep are mentioned at the end.
(A) Contents of your Financial Notebook and Estate Plan Binder
Truth be told, I got my notebook in order before a shoulder surgery several years ago. So if it makes you feel better, my binder is somewhat obsolete now, and needs a fresh update. So we are in this together!
The Cover
Mine says "Financial Notebook and Estate Plan (our names) & Date"
Organization of Binder Materials
Below are some general categories that may reflect parts of your financial constellation, and if not, add your own depending on whatever financial or other activities you may want to include. I suggest getting numbered divider tabs to separate each section in your binder, and to link to an Index Page (Items 1-16 below).
(1) General Narrative
I threw this in because the book seemed to need some sort of "formal" tone. It reads:
"The purpose of this notebook is to assist in the administration of the Estate of "Me" and "Her" in the event of their death(s), and provide information (while still living) as to our finances, insurance, commitments, etc. should the necessity arise for us to need assistance in this area."
(2) Personal Information.
General Information
- Contact information (addresses, phone numbers), social security numbers, birthdates
- Parents & their birthdates & social security numbers
- Children and their personal information
- Driver license numbers
- Employer & contact information
- List of online and other passwords
Health Information
- Insurance & account numbers (medical, dental, vision, life, e.g.)
- Doctors including dentist, eye, etc. & Contact information
- List of current prescriptions including dose amounts and frequency
- List of maladies (heart conditions, Cushing's disease, e.g.)
- Surgeries & dates
(3) In the Event of Death
- You may also want to see Section II, Managing Parental Financial Responsibility and Section III Executorship for after-death plans for the last surviving parent.
- Location of wills, power of attorney, health care directive
- Name of the executor, alternate executor, contact information
- Final arrangements
- Prepaid plots, services (if applicable)
- Final resting place wishes
- Pre-written obituary or eulogy suggestions (I've seen this!)
- Course of Action (examples below)
- Contact family and friends.
- Make arrangements with funeral home
- Polish up obituaries, publish in local newspaper if desired.
- Have service & get together (wake, e.g.). This may involve putting together pictures for slide show, or collecting personal items for a memorial table.
- Contact employer's HR department
- Contact Insurance Agent & other insurers
- Contact Social Security
- Contact Financial institutions
- Contact etc.
(4) Asset Summary, including contents of safe and safety deposit box. Good to have locations, amounts, serial numbers, estimated values, etc. Spreadsheets (Excel, e.g.) or other listings (Word, e.g.) work good for this as they are easy to update.
(5) Passwords. Password Template
(6) Banking information (copy of recent statement, e.g.)
(7) Bill paying information (budget, copies of recent bills (one per vendor (i.e. cell phone, utility, etc.)
(8) Social Security information. (copy of statement, e.g.)
(9) Retirement information. You may need several tabs depending how many accounts you may own. In fact, you can, and I do, have a separate binder for retirement investment accounts. Include contact information & account #'s.
(10) House information. Could include property tax information, irrigation district info, HOA dues & information, etc.
(11) College or other loan information. Recent copies of statement with amounts owed, minimum payments, account numbers, etc.
(12) Insurance information (cars, boats, house, life, etc.). Contact information of agents.
(13) Church Information. Could be your giving amounts, or other commitments.
(14) IRS Information. You could add a copy of the previous year's 1040 here.
(15) Vacation & Entertainment (season tickets, cabin rental info, Airbnb, Condo, etc.).
(16) Any other information you want to include.
***********************************************************************************************
(B) Other Recordkeeping Suggestions
What to Save & Record Retention
I tend to save paid invoices for longer than I should before shredding. Wadded in groups, stuffed in a bag. I don't know if there is a good rule of thumb here. Routine bills could be tossed when the next one arrives showing that you have no previous balance. Other bills such as major purchases (vehicles, jewelry, firearms, electronics, maintenance agreements, insurance policies, repairs to your house, car, etc.) should be held onto as long as you have that asset. I would put this information in folders in a filing cabinet, or a safe.
Important items to put in secure place like a safe
- Wills, POA's, Health Care Directives
- Vehicle Titles
- Birth Certificates
- Social Security Cards
- Passports
- Deeds
- Valuables such as jewelry, firearms, money, etc.
- Blank checks
- Tax Returns
I also have a box in the closet full of user manuals. Same retention rules apply here.
***********************************************************************************************
Final words regarding Recordkeeping
So, yes, admittedly, getting your information rounded up and maintained is a bit of a chore. Once set up, you can keep your binders updated as you go, or maybe once a year get them updated and spiffy. Like life, your binder of financial information will evolve over the years. Being organized will give you a certain amount of peace to have your financial information squared away. And remember, this is fun!