Get Organized Now

Make your executor's job easier, and help out your family, by getting your paperwork in order.

Estate planning isn't just about legal issues -- there are practical ones as well. After you die, your loved ones will have to cope with many things that just aren't covered by basic estate planning documents. Among these are:

• Who should be notified about your death and funeral?
• Do you want a funeral or a memorial ceremony? If so, what type?
• Do you want people to send flowers, or would you prefer donations to charity?
• Did you prepare a will or living trust? Where are the originals?
• Do you own a life insurance policy, pension, retirement account, or annuity? Where are the documents stored?
• Do you have bank accounts? Do you have a safe deposit box? Where are the records?
• Do you own stocks, bonds, or money in mutual funds? Where are the records?
• Do you own real estate? Where are the deeds?

Most of us carry this information around in our heads and never discuss it with our family members in a comprehensive way. Our loved ones must do their best to sort it all out later.

Costly or painful losses can result from a failure to organize your affairs. Stocks, bonds, bank accounts, real estate, and insurance policy benefits may go unclaimed and be turned over to the state government. This happens surprisingly often. Each year, millions of dollars go into state treasuries because the rightful property owners couldn't be found.

On a more personal level, relatives or friends may not be promptly informed of a death, and valuable pieces of family history may not be passed down to future generations.

Fortunately, losses like these can be avoided with a little bit of planning, sorting, and organizing. Making things easier for your family is not difficult, but it may be time-consuming. It's best to break the task into manageable sections and take it one step at a time. Start by thinking about some broad categories of information:

• Funeral plans (arrangements and whom to notify)
• Insurance policies
• Wills, living trusts, deeds, and other important documents
• Pensions and retirement accounts
• Bank, money market, and mutual fund accounts
• Stocks and bonds
• Items in safes, safe deposit boxes, and other locked or hidden places
• Family history, including the location of photographs, heirlooms, and other irreplaceable items

When you've got everything in order, be sure to store your information in a safe place. You might consider keeping everything in a fireproof metal box, file cabinet, or home safe. And be sure to discuss your new records with those closest to you. Your careful work won't help them unless they know where to find important papers when the time comes.