Thinking about your death is really not something anyone enjoys doing. Sadly, however, the day will come for everyone when we pass on. What happens next — and how your family is left to cope with the situation — is going to depend on how prepared you are.
While it’s tempting to just not take any estate planning steps to get ready for your death, this can put your loved ones in a really bad spot and make life a lot harder for them during a time when they are already coping with grief. There’s no reason to do this to your family. Instead, you’ll want to make the right moves to make things easier for them. That includes creating a death file.
One Reddit user recently posted an example of his death file, which provides some really helpful information about what to include. Working with a financial advisor to create a personalized plan is usually the best way to make sure your file contains all the information you need, but it can also be helpful to look at what the Redditor and others have done to be prepared for their passing.
What to include in a death file
The Reddit user had a pretty comprehensive list of the things that he put into his death file, including:
- A copy of his last will and testament.
- His birth and marriage certificate.
- A copy of his passport
- His Social Security number
- Contact details for his doctor, his accountant, and his lawyer.
- Contact details for family members, dependents, and others who he wishes to be notified about his death
- Information about his life insurance policies, pension, and bank accounts
- A list of his assets and his debts
- Information about his sources of income
- Details about the properties he owns, including real property and his vehicle, as well as a spare key for each
- A durable power of attorney letter and living will information in case of incapacity
- Preferences for his funeral and other wishes in his afterlife
- A short history of his family along with a few cherished pictures
- Digital information, including passcodes for his cell phones and other online accounts.
Other Reddit users chimed in as well, suggesting a few additions, including utility providers. However, this is a pretty comprehensive list of crucial information to include, and it will make life a lot easier for those who are left behind who don’t have to scramble to figure out what property he owned or where to find it, and who will know exactly what his wishes are for his legacy.
He also said to make sure your family knows where to find this file.
Legacy planning is an important part of financial planning
Creating a death file is a very simple thing that you can do that will make life a lot easier for those you leave behind. However, there’s more to estate planning than just ensuring everyone knows where your documents are — and some of the other steps you’ll need to take can be much more complex.
You owe it to your loved ones to make sure that you have used the right tools, such as a will, trust, and living will, to ensure that your assets are protected in case of incapacity and that they can transfer seamlessly to the next generation. You also owe it to yourself to take these steps to secure your legacy so default rules don’t apply upon your death.
Working with a professional financial advisor, and potentially an estate planning lawyer, will enable you to leave your desired legacy and will ensure that your loved ones are provided for and your assets are used in the best way possible when you are gone.
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