Organizing for End-of-Life
Thinking about end-of-life planning can be difficult, but taking the time to organize important documents can help your loved ones avoid future stress. When documentation is clear and accessible, loved ones are better equipped to handle final tax returns, close accounts, and honor your wishes.
It’s recommended to keep the documents organized in one secure place and clearly communicate their location to trusted family members or advisors. While many of these records are essential for financial and tax matters, others are essential for personal and practical purposes for those you leave behind.
Below is a helpful guide to the types of documents you should consider organizing.
Financial Documents
Readily available financial information helps loved ones settle accounts efficiently and accurately. Consider compiling the following:
- Bank account information, including beneficiary designations and login credentials
- Life insurance policy documents
- Real estate records, such as purchase agreements and deeds
- Prior-year tax returns
- Credit card accounts, including account numbers and passwords
- Cryptocurrency holdings, along with access details
Planning Documents
These documents outline your legal and medical wishes and are critical during times when decisions must be made quickly:
- Your most up-to-date will
- Trust documents, if applicable
- Power of attorney forms
- Durable power of attorney for health care and advance directive forms
- Pension and retirement account information
- Vital records, such as birth certificates and marriage or divorce certificates
- Vehicle title and insurance details
Personal Documents and Preferences
Some of the most helpful information isn’t financial at all. These details allow loved ones to honor your wishes and manage day-to-day matters:
- Receipts for prepaid funeral expenses
- Funeral or memorial service preferences
- Pet care instructions
- Phone password or access information
- Location of your safety deposit box and key
- A list of current mortgages, loans, and other debts
- A list of utility vendors and bills on autopay
Organizing the Documents
It’s essential to organize your documents in one place, either physically or digitally, and then inform a trusted loved one or advisor of their location. Some people prefer to keep them all in one physical location, such as a fireproof safe or safety deposit box. Others prefer to save them in a secure digital cloud folder with password protection. Whichever method you choose, be sure to inform your chosen representative of the password, passcode, or key location so they can access the documents when needed.
Final Thoughts
Organizing these documents in advance can spare your loved ones unnecessary confusion and stress during an emotional time. Many of these items will also be requested by your accountant when preparing final individual income tax returns and trust returns. By organizing documents in one place, your loved ones can have an easier time meeting your tax return obligations.
A little organization today can make a lasting difference tomorrow.
