Creating Your Vital File
After helping families through the Massachusetts probate court after the death of a loved one for more than a decade, I continue to live by Benjamin Franklin’s adage, “An ounce of prevention is worth a pound of cure.”
Losing a loved one is challenging enough, and no amount of estate planning can supplant the pain and grief of loss. What effective planning can do is ease the administrative burden and confusion of your loved ones during the transition process.
Confronting mortality is extremely challenging, but the most effective way I have found to clarify what really matters and live my most authentic life. I have also discovered that “beginning with the [ultimate] end in mind” (from the Seven Habits of Highly Effective People) is that my life is better right now for having taken a series of steps along the journey to simplify, then organize.
I also make sure to have critical information available to my loved ones in my Vital File. I personally have a physical file in a secure location because I am skeptical of having so much crucial information available online in one place. You may choose a mix of digital and physical methods. Just tell your loved ones “I have some critical information _______ and ________.” Ideally, write it down because loss can impair memory temporarily. How you have this information is less important than what information your loved ones will likely need in a crisis:
Information about Minor Children, if any and Guardianship directions
Social Security Number and card
List of Bank Accounts – including account numbers
Real Probate Tale: I have had personal representatives go to a bank and provide the social security number and letters of authority for the estate and still not receive every account held by that person at that bank. It helps to know exactly how many accounts to look for and the type of account.
Email login credentials, Device Passcodes AND a durable power of attorney authorizing authority to access digital assets
List of Credit Cards
Real Probate Tale: Identity theft of recently deceased happens. Information to pay off and cancel cards is useful.
List of Current Subscriptions and Automatic Payments, if any
Real Probate Tale: Especially prescriptions medication and perishable items that may be shipped to your home. Yes, I have found rotting food on the doorstep. Also, getting retroactive payments back can be tedious, it’s easier to cancel quickly.
Names and contact information for your blood relatives (even if they are not in your will) and any devisees named in your will
Real Probate Tale: Yes, there are helpful services for locating people, but they can be expensive.
A note about where you keep your photos and access information
Employer contact information
Landlord contact information
Real Estate Ownership documents and loan information, if any
Investment and Retirement Account information
Prior year Tax Return
Life Insurance
Will
Trust documents, if any
If you have any heirlooms or assets that your loved ones may not know about or know have any value
Real Probate Tale: Yes, I have witnessed potentially valuable collections thrown away without being looked through and other possessions carelessly tossed aside because no one knew any details. On the other hand, people have paid a lot of money to professionals to catalog and distribute Hummels and other collections to little net effect. The point is you decide what matters.
For more information and support for creating your Vital File, you may be interested in our free Email series entitled “Organize your assets in 5 days.”
