Helping Your Spouse After Death
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We thought the article below was so important that we decided to reprint it in its entirety. James L. Rudolph, Managing Partner HELPING YOUR SPOUSE AFTER YOUR DEATH Does your spouse know: * your burial and funeral wishes? * the location of your will? * the location of your safe deposit box(es) and key(s)? * the location of any securities or the accounts that hold them? * your bank accounts, mutual funds, life insurance policies and any other assets? * the location of titles, real estate deeds, and income tax records? * your regular household and personal bills and their frequency for payment? * how to reach your estate planning attorney, trust officer, accountant, and other advisors? When you pass away, it will be a difficult time for your spouse and family. There are some things that you can do now to make it much easier on your loved ones. You can leave valuable information about your assets, benefits and income, and wishes organized and accessible to your spouse and executor. We recommend that you set up an Estate notebook, folder or binder, with sections that may follow the outline of this column. It is ideal to use notebook dividers with pockets for storing statements and copies of documents. Keep the notebook in a mutually agreed-upon and secure place. The function of the notebook is to provide your spouse and your executor with burial or funeral guidance, a list of benefits to be claimed, the location of assets, the contact information for your advisors, and the location of important records. It can protect your estate and assist your spouse and executor in settling your estate, saving considerable time and expense and reducing anxiety. Basic Data On the first pages of your notebook, indicate your date of birth and include a copy of your birth certificate. Provide your social security number and include a copy of your social security card and the location of the original, if you have one. Also record the date of your marriage(s) and any subsequent divorce, including a certified copy of your marriage certificate and the location of information about any divorce decree. Include a list of the names, addresses, and telephone numbers of all of your advisors, including your estate-planning attorney, trust officer, accountant, investment managers and insurance agents. Finally, for ongoing household management, a separate list of companies or individuals you employ for plumbing, electrical work, fuel delivery and furnace cleaning, carpentry and repairs, housekeeping, landscaping and garden maintenance can be extremely helpful. A separate list for vacation homes in another locale should be included. Your Will When you die, the most important document that your spouse must locate is your original will, which will be used by your attorney to begin the process of probating your estate. It may be held by your attorney or in your safe deposit box. When Banks are named executors, they often hold the will in our own vault for safekeeping and ready access after death. Identify the location of your will in the notebook, and include a copy of the will and any codicils. Funeral and Burial Planning No one wants to think about his or her own mortality; but it is much easier to contemplate funeral and burial wishes when you are mentally strong and physically healthy, not facing difficult medical situations. Pre-planning your own funeral is difficult, but pre-planning can relieve your spouse and family of decisions at the most stressful time. You may leave instructions in your notebook relating to your burial and funeral, to be carried out at your death, or you can meet with your local funeral director to prearrange your funeral services. Your spouse will be comforted knowing that the arrangements reflect your wishes and relieved to know that he or she does not have to make these decisions at an emotionally difficult time. At a minimum, you should include in your notebook the location of your cemetery lot and the location of the deed for that lot. If you do decide to make pre-arrangements with a funeral home, the name, address and telephone number of the funeral home should be indicated. Life Insurance and Annuities Details on all annuities and life insurance policies, with policy numbers and Beneficiary Designations, should be provided, along with the location of the policies. Include the most recent annual statement for each in the notebook. Securities and Other Investment Assets A list and copies of all brokerage, bank, mutual fund and investment accounts, as well as any limited partnerships, are essential. For IRA or IRA Rollover accounts, provide the Beneficiary Designation, and indicate whether you receive any distributions and how much. In addition, the notebook (and your accountant) should have a record of the federally tax-deductible and non-deductible contributions that you made to your IRA, so that taxability can be ascertained when distributions are made to your Designated Beneficiary. If you hold any stock certificates or other securities in physical form or in book-entry form at the company, provide the description and location of each (i.e., safe deposit box or book entry). Indicate whether there are any Dividend Reinvestment Plans in place and where you maintain the quarterly/annual reports for these plans. Include the most recent annual statement in the notebook for each plan. Benefits To collect benefits, your spouse will need to know what they are and whom to contact. Benefits paid by the Social Security Administration, Veteran's Administration, and current or former employers are the first that come to mind. Social Security Benefits If you paid into social security, your spouse or dependent children may be eligible for a Death Benefit (currently $255 for burial expenses) and for Survivor Benefits, which vary depending on the age and relationship of the survivors. Your spouse will need your social security number to inquire into the benefits payable. Veterans Benefits If you are a veteran with an honorable discharge, your spouse may be entitled to funds for funeral and burial costs. Burial in a national cemetery is free. Veterans are also eligible for a grave marker. If you are a veteran, it would be helpful for your spouse to know your dates of service and date of discharge. If you have a copy of your discharge papers, include them in the folder. Retirement Benefits Many employers provide life, health, and accident insurance, as well as retirement benefits in the form of a pension, 401(k) Plan, Employer Stock Ownership Plan (ESOP), and stock options. Be sure to keep a list of all plans and benefits, with a description and a copy of any Beneficiary Designation forms. Also include contact information for your current employer and all past employers from whom you are due benefits. Since many companies have merged or been acquired, it is very important to keep the list updated. It is helpful to keep the most current annual statement from any retirement plans in your notebook, along with name of the beneficiary. Trusts If you ever established a trust or are the beneficiary of a trust, provide the location of the original instrument and amendments for your own trust and include a copy of those documents in the notebook. If you have a copy of trusts of which you are a beneficiary, include those copies in the notebook. An annual or current statement for each trust account is useful. Include for each trust the name of the trustee (which may be an institution or individual), name of the Trust Officer or other trustee representative with whom you communicate, address and telephone number. Real Estate Provide descriptions of all real estate holdings, residential and commercial, along with the location of the original deeds. For rental real estate, list the location of the property, the name(s) of the current tenants, and the rent amount, due dates and method of payment. Put copies of current leases as back-up in the notebook. If there is a property manager or someone else assisting you in the oversight of the property, provide the name of the firm or individual, address and telephone number. If you are managing the property yourself, the notebook should include a list of any companies or individuals whom you typically use for maintenance. Tangible Personal Property Include appraisals of any valuable personal property or collectibles with the location of the property. Photographs of valuable items, particularly those listed on a fine arts schedule of your homeowners policy, are useful. Provide the location of any titles, such as for your automobile and boat. Loans If anyone owes you money, indicate the details: name and contact information, amount, and your expectations regarding payment. Include copies of any promissory, demand or mortgage notes, and indicate where the originals are held. Debts Provide debt information, such as credit cards, outstanding mortgages, or loans made to you. Provide the amount, payee, account number, and schedule for payments. A copy of the year-end statement, if available, can be kept in the folder/binder. If you have any loans that were paid in full, you may want to include documentation that states that such payoff was made, or include the original note so marked. Insurance Other than Life Insurance All other types of insurance, such as property, liability, automobile, accident, credit card and malpractice, should be listed, with the location of the policies and contact information for each insurance agent responsible for your coverage. This information will help your spouse or family to cancel unnecessary policies and obtain premium refunds, or to continue important policies for protection, as needed. Records, Checks and Vouchers The location of the following should be listed: * your safe deposit box(es) and keys (e.g., in my top right desk drawer), especially if your will and other original documents are in the box. You may want to provide an inventory of what is in each box. * the location of your copies of prior income tax returns, as well as any gift tax returns filed. If you maintain a current-year file, indicate where it is located also. * prior checking account statements and check registers, as well as where you store your unused checks and current check register. * any other financial records that you think may be useful to your spouse, family or executor. Inheritances If you have inherited property from someone in the past ten years, provide the name of the person, the date of death, and the name and address of the executor. Your estate may be entitled to some tax savings. Setting up a notebook will, realistically, take quite some time. An ideal time to begin is early in the calendar year, after you have received year-end annual statements and are researching and collecting information for preparation of your income tax returns. This project may take you most of a year, but once your notebook is established, you will find that updating, which should be done annually, is not arduous. You will feel great satisfaction in having organized your affairs, knowing that you are easing the burden for your spouse and loved ones. We thank Julie A. Alix of the Cambridge Trust Company for contributing this article to our newsletter. |
