Once you’ve properly signed all of your estate planning documents, it is important to make sure that they are accessible by the right people at the right time.

Original Documents

Although it was common practice in the past for lawyers to retain the originals of their clients’ documents, that practice is quickly fading away. Many lawyers now have a strict policy of returning the original documents back to their clients after signing. You should be sure to place them some place secure in your home, perhaps where you keep other important documents such as birth or marriage certificates. You should also let the people named in your documents know where they are located if something happens to you.

Copies

Your financial advisers or accountant may request a copy of your documents. Whether to reveal the documents to the people named in your documents or your beneficiaries is a judgment call. On the one hand, since these individuals will be responsible for managing your affairs and assets once you pass away, it makes sense to share the documents with them. On the other hand, you may decide to amend your documents in the future and having superseded copies of your estate planning documents floating around may cause unnecessary confusion. It is best to discuss this matter with your estate planning attorney to make sure you are making the right decision.

Scanned, Electronic Versions 

Making scanned, pdf copies of your executed estate planning documents allows you to easily share them in case of emergency. As mentioned above, your estate planning lawyer may no longer retain originals; instead, however, many are now in the practice of scanning and saving electronic versions of their clients’ documents. If that is the case with you, sharing your lawyer’s contact information with your loved ones may give them an additional place to look if they cannot locate your estate planning documents.

Labeling File Names

The file names for your scanned documents should indicate (a) what type of document it is, i.e., Living Trust, Will, Durable Power of Attorney, etc., and (b) the date that the document was signed.

Digital Accounts and Passwords

It’s also a good idea to put together a list of your online accounts along with passwords to access those accounts. In addition, you may want to leave behind instructions on what your wishes are concerning digital assets such as e-mail, social media accounts, etc.

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The coronavirus pandemic is a good reminder of the importance of having your estate plan prepared. Here are the basic documents you should have in the event you become incapacitated or pass away.

Durable Power of Attorney

The agent that you select under a durable power of attorney can generally take care of your financial affairs if you are no longer able to act for yourself. The agent may be able to transact with financial institutions on your behalf as well as to sign legal paperwork or file your taxes.

Advance Health Care Directive

Like the Durable Power of Attorney, the Advance Health Care Directive allows you to select an agent to make health care decisions for you. The agent can also speak to medical professionals on your behalf. Due to privacy laws surrounding medical information, this document may be the only way anyone can get information about your health situation.

Revocable Living Trust

Most estate plans today utilize a revocable living trust to avoid the various hurdles of the costly and time-consuming probate process at the time of your death. The revocable living trust also has the added benefit of providing a plan for the management of your trust assets in the event that you become incapacitated. The key to utilizing a revocable trust effectively is to ensure that appropriate assets have been properly transferred to your trust.

Will

For most people, the revocable living trust is the primary document that describes how their assets are to be distributed. However, Wills are still prepared as part of a complete estate plan and are usually where guardians for minor children are nominated. Typically, clients who have a revocable living trust also have an accompanying “pour-over” Will that states that any assets that the client may have forgotten to put into the trust while they were alive be put into the trust after their death. The person in charge of carrying out the wishes in your Will is known as the Executor, and is often the same person as the successor Trustee of your revocable living trust.

Transfer / Title Documentation

If you have a revocable trust as part of your estate plan, you should also make sure that any bank and investment accounts, real estate, or any other asset (other than retirement accounts and life insurance policies) are re-titled in the name of your revocable living trust. This will ensure that those assets will be distributed in accordance with your trust rather than your Will (the latter of which may require a probate proceeding).

Beneficiary Designation Forms

Some assets are only distributed by way of beneficiary designation forms. Typically, life insurance and retirement accounts (e.g., IRAs, 401ks, SEP-IRAs, etc.) fall into this category. It is therefore critical that you review these from time to time to make sure that you’ve named the appropriate beneficiaries.

Asset List

This is rarely mentioned, but practically speaking, simply putting together a list of your assets can be immensely helpful to your Trustee, Executor, or beneficiaries. Often, when a person dies, his or her family members do not know where to look for the assets. A simple list with information such as the address of any real estate that you own, the places where you have banking or investment accounts, or the legal names of the businesses that you own can greatly reduce the burden faced by your loved ones.

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