But we ran out of time.
About two months after the fire, my mother died from her injuries, and her heirs lost about $250,000. That’s because she died before the claim was complete, thereby forfeiting the back payments, which would have gone to her estate. Despite our efforts to get my mother to share her financial information long before the fire, she remained secretive and refused to get a will.
Life insurance payouts go unclaimed because beneficiaries aren’t aware of the policies, according to the National Association of Insurance Commissioners, which established a search tool to help consumers find lost life insurance policies and annuities (https://eapps.naic.org/life-policy-locator/#/welcome).
To make things easier for your family, put together a binder or letter detailing what you own and owe.
Here’s a list of the many documents people need to know about.
- Your will/trust. Where is it? Which attorney helped you prepare it? Tell people where they can find the document if you prepared a do-it-yourself version.
- Life-insurance policies. Don’t forget to include any policies paid for as part of your employment-benefit package.
- Veterans Affairs records. One summer my husband and I took care of his father, who had undergone major knee surgery. During his time with us, he shared with me a folder containing some important documents that he wanted me to hold on to in case anything happened. Among the items in the folder were his military-service records, including his discharge paperwork. Those documents later helped prove he was eligible for military funeral honors.
- Marriage and death certificates. In fact, I also keep copies of old obituaries and funeral programs, which contain a wealth of information that can be helpful in estate planning. These documents can include maiden names and other family history you might need to hunt down important papers.
- Pension records. Be sure to keep records from previous jobs.
- Net-worth statement. This document is the master list of everything you own — bank accounts, home and vehicle titles and information regarding investment and retirement plans.
- A list of outstanding debts. If there is money in the estate, creditors have to be paid as much as possible. Leave a paper trail so whomever is handling your estate can verify what you owed.
- A list of professionals you’ve hired. Your financial adviser, accountant or insurance agent knows a lot about your business. These people will be tremendously helpful in assisting your personal representative or trustee.
I’ve been writing about the need for people to get a will for years, and pulling together your important documents is the first step.
Trust me, your family will be grateful that you made sure they can locate all that they need to handle your affairs.
