3 Outside-The-Box Estate Planning Ideas
The modern world is complicated place that in turn makes people more complicated. Way back when, we had paper statements and our physical belongings. Today we have lives on social media, paid apps on our phones, multiple services that require many passwords that should be changed often, cybersecurity issues, digital photo and video albums, and many other sources of data that make up our lives. Having a plan for these digital assets will help us keep our information in the clouds rather than our heads. Below are a couple ideas to help tie up any lose ends that your estate planning documents usually exclude.
Password Access
Most people have hundreds of passwords they have to keep track of today. While many of them may be insignificant, some of them could be very important to share with a person should you become incapacitated. Think about places you have reoccurring subscription payments, medical information, private data, investment accounts, insurance contracts, sensitive documents, employment information, important contacts, or any other information that could be helpful for someone who may need access to this information. Guarding this information too closely could end up being a major undertaking for a loved one or executor. Finding a way to make this information accessible and detailed with steps for the personal representative could make a huge difference in how your estate administration plays out.
You could load your passwords and details into a spreadsheet or Word document, but that could be easily exploited if it fell into the wrong hands. My personal favorite is a password keeping app. I am not advertising this service but the app I am most comfortable with is LastPass. LastPass is a great tool that isn’t going to break the bank and will help you securely organize your sensitive log-in credentials, secret notes, and identification.
The app also allows you to put your passwords into folders so the person who has emergency access to the app can find which accounts they really need to worry about. For example, I have my passwords sorted by characteristics like whether they have a reoccurring payment coming from them or if they are not important. A large majority of my passwords are not important, so my designated emergency access individual can skip a huge section without worry and focus on the important accounts.
Be sure to find some way to give access to this app or document to the designated person or persons who will need it when you become incapacitated. This could be your partner, executor, family member or whoever but be sure they can get access when necessary. My wife can access mine via my phone and a master password. Whichever route you choose make sure clear instructions are provided so their life is that much less stressful.
Letter of Intent
The LOI is a great tool to backup your estate plan. This document is not legally binding, but it can support your legal documents if they are ever questioned during your estate administration. While this is not a legal document, you want to make sure it jives with the rest of your plan so it doesn't create unnecessary issues. This can be written at any point and is not mandatory but it does clarify your wishes for things such as funeral arrangements, your lists(see below), what you want done with your social media accounts, reiterating the distribution of your assets, pet care, and other personal details you think people need to know after you’re gone. Some folks even leave a little note of family history to soothe the pain after their passing.
Unfortunately, I must recommend that you find someone to focus on shutting down your social media accounts. My family has had personal experience with online predators who hack into deceased family members’ social media accounts and try to steal money. It is worth it to take the time to get these accounts shut down before they can do any harm. Your memory will live on through experiences and photos, so there is no need to keep those accounts around.
Lists
If you read my blogs, I am sure you’re sick of hearing about lists by now, but they really are helpful. Not only to the key players in your estate, but also so that you can take inventory of your assets, debts, and plan. They are a great visual for you to know if you are missing any important facets of your estate plan or if you haven’t designated one of your belongs to a beneficiary.
They also help your executor to know who to call for what and when. The lists clearly show where your belongings are located, to whom they will go, and their assumed value for estate valuation purposes. You will be amazed how clear your life picture comes into focus when you have it neatly listed in front of you.
For more great pro tips to use when building an estate plan, set up a meeting with Ryan Kaysen. Integritas will be happy to work with you on your investments and planning.
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