Read our Estate Planning Overview here if you are just getting started: https://www.amminvest.com/estate-planning-overview/
You’ve visited an attorney, got all of your documents drawn up, you have your big binder filled with everything important, now what?
Creating an estate plan summary - a short, digestible summary of the people named and the key features of your plan - can help you and your family understand your plan. Estate planning can often feel overwhelming and reviewing your estate plan can be a chore. When your friends or family are grieving your loss a summary can help them begin untangling the threads of your financial life.
Your attorney may be able to help you with parts of this document, especially summarizing the main points of your will and trust.
Structure
Since the summary is for convenience and is not a legal part of your documents, you do not need to visit an attorney to create or edit it. You do need to work with an attorney if you want to change any of the features of your will, trust, or powers of attorney.
Your estate plan summary should include:
- The names and contact info of your executor and successor trustee(s), beneficiaries, and any professional advisors.
- A clear summary of who you want to inherit and who you want making decisions if you are incapacitated.
- The locations of your personal property.
- Details of life insurance policies: beneficiaries and company names.
- Personal property (cash, valuables, etc.)
- Safety deposit box locations.
- Pension information: beneficiaries and program contact information.
- Details of outstanding debts like a mortgage.
- Final wishes for your services and disposition.
- Final messages to loved ones.
It is very important to keep this list secure. A bad actor who finds this information could try to gain access to your accounts. Keeping this list in a locked, secure location and off of any internet-connected devices is important.
You may wish to provide a copy to your executor, successor trustee, and/or family members. They will need to keep it secure as well so another option is simply telling them the location of your list and making sure they have a way to access it in case of your death.
Think of this list as you drawing a map for your executor and/or loved ones. If no one knows about the life insurance policy you took out, they may never benefit from it. Keeping and maintaining a document like this can ensure nothing is overlooked.
Easily Missed Items
It can be easy to overlook items that your beneficiaries need to know about. If you use multiple banks, credit cards, or have a safety deposit box it is key to list all of the names of the companies so your executor knows where to look.
Physical items can be difficult to locate, especially if you cleverly hide valuable items in your home in order to reduce the chance of theft. Large amounts of cash, jewelry, keys to your safety deposit box or storage unit should be listed somewhere securely so that your executor can locate them.
Digital assets are easily lost. Cryptocurrency, by its nature, is virtually untraceable and its decentralization means that there is no bank or custodian who can help your executor track down your digital wallet.
Digital assets can also mean something that has value to the people in your life, whether that is monetary or emotional value. Access to your photo storage service can mean a lot to your family and friends so making a plan for those items is important.
Digital estate planning can also include deleting files or accounts upon your death. Currently, Google and Facebook have provisions you can set up to inactivate your account after a certain period of time (Google) or assign someone to administer your page (Facebook). As time goes on and the law develops we may see more companies offering solutions.
Reviewing Regularly
An estate plan summary, provided it is regularly reviewed and securely stored, can simplify the maintenance of your estate plan. Refreshing your memory of your current estate documents means you will easily notice when a change is needed. It will also help guide your heirs in that confusing period right after a death when tracking down important information feels next to impossible.
Talk to one of our financial planners at American Money Management for tips on how to start your own estate plan summary.