There are many things that affect our lives that we cannot control – but we should absolutely take control of what we can.  Kudos are due if you have already accomplished most of what follows; these precautions will make life easier for you and/or your family in case of unforeseen events.  Still, it’s wise to review them periodically.  Some are particularly important if a tragic event should simultaneously befall both you and your spouse.  It happens to unfortunate couples every day.

Have a Will and Powers of Attorney; Your Family Will Thank You.

Every adult should execute a will, a durable power of attorney, a living will and a health care power of attorney under the laws of their state of residence.  A will allows you to specify how your assets will be distributed when you die, among other things.  A durable power of attorney enables a trusted person to act on your behalf if you become incapacitated.  A living will or advanced directive specifies your desires regarding medical treatment if you are incapable of expressing informed consent when you are terminally ill and/or in a vegetative state.  A health care power of attorney allows a trusted person to make medical decisions for you when you are unable to make them for yourself.  Except for a will, the others can be combined in one document.

People who provide care for dependent persons – particularly minor children – need a will that specifies who should be named as a guardian of their dependent person(s) and how their assets should be distributed to the dependent person(s) and/or used for their benefit.  In a recent, tragic mass shooting, all members of one family were killed except a young child.  The courts may have to decide his guardian. 

Tell Them Where Your Assets Are.

After completing these document basics, however, there are other actions you can take to make life easier for you and your family.  We all hope that we will grow old and go on to our just reward in some type of natural way.  Still, planes do crash and horrific accidents do occur.  What do your adult children or other heirs do if you and your spouse are suddenly gone and they don’t know everything you own or where it is located?  A will doesn’t provide that information, and it shouldn’t.

No doubt, they will be stressed and probably in the dark about how to proceed.  But a lot of that angst will be avoided if you have provided them – in advance – with an asset location document (ALD) that informs them about all your assets and how to access them.  Update this document at least once a year and include contact information for your legal and/or financial advisors.  It is also advisable to put an ALD copy in your safety deposit box(es), authorize a trusted person (adult child) to access the box(es) and let them know where the keys are kept.

What should the ALD include?  Well, it should provide the location of your safety deposit boxes, bank accounts, brokerage accounts, real property, jewelry, collectibles, original copies of powers of attorney and wills and any other assets.  Values of assets need not be included, except perhaps for artwork and collectables.  The ALD should also provide account numbers, where applicable, and advise where passwords for your various accounts, including computers, can be found.  It is very important to identify any property located outside your home state. 

Employers typically establish contact numbers where heirs can get information on pension plans, 401k accounts and company insurance.  Include employer contacts, social security numbers and any employee ID numbers in your ALD.  Your heirs will need them.

Dig Up Buried Assets.

You probably don’t bury valuables in the ground, but some might not be obvious.  For example, credit card companies may provide significant travel insurance if tickets are purchased with their card.  A wrongful death claim could also be an overlooked asset if you were involved in a fatal accident, but it must be filed soon thereafter.  Include this and other advice about any obscure assets in your ALD.  The more information it contains, the less research will be required by your estate executor and that will save time and fees charged to your estate.

A Lightning Strike Killed Your Computer – Now What?

Computers are often where financial records and information (like Quicken) are stored, along with valuable personal information and pictures.  Backup computer files on several rotating flash drives or other USB connected devices at least monthly and periodically place one in a safety deposit box. 

Videotape the contents of your home and place it in a safety deposit box.  It will facilitate insurance claims in case of a fire.  Scan precious pictures and load them on backup drives for safety deposit box storage too.  If lost in a fire or other disaster, they can’t be replaced. 

Not Adequately Insured?  Tough Luck!

Home construction costs have skyrocketed over time.  Your homeowner’s insurance should be adjusted for inflation periodically to fully cover rebuilding costs if your home is destroyed.   You should also have an umbrella liability policy in an amount sufficient to protect your assets against a lawsuit alleging negligence on your part.  And, it’s a good idea to have earthquake coverage.   

We all hope these precautions will never be needed, except for wills.  But if they ever are, they will be invaluable.