As a professional organizer, I help clients make sense of the physical clutter in their lives. However, tackling basic estate organizing tasks is just as important, and it should be part of your organized life.
Estate planning isn’t just for older people – no one knows when their last day might be. That’s why it’s important to have this crucial conversation with your loved ones. In fact, there is no time like the present to get your legal and financial life in order.
Thoughtful planning for what happens when you’re gone is one of the best gifts you can give your loved ones. It relieves the burden of an emotionally overwhelming situation and ensures your estate is handled the way you intend. By making your wishes clear and easily executed, you provide peace of mind for yourself and those you care about.
Assemble a Professional Support Team
Your first step should be to hire a qualified lawyer and accountant. Lawyers provide advice on the legal aspects of your property and possessions. Then, they prepare a legally sound will and other critical documents, such as a power of attorney and personal directive.
An accountant will advise you on your tax obligations to ensure you manage them appropriately. They can also help your executor navigate the financial aspects of your estate. These professionals work together to minimize stress and potential conflict for your loved ones.
Write a Will and Choose an Executor
If you haven’t already written a will, now is the time to do it.* A will outlines how to distribute your assets and names an executor. The executor is the person responsible for carrying out your wishes. Ideally, choose someone trustworthy, organized, and comfortable dealing with financial and legal matters (and potential conflicts among your heirs). You will also need to appoint a secondary executor just in case. You don’t necessarily have to choose a friend or family member; you could appoint a law firm or trust company to act in this role.
Whoever you choose, discuss it with them first. While they may be organized and trustworthy, their personal situation may not permit them to take on the responsibility. In addition, review your will, power of attorney, and other legal documents every few years or after significant life events (such as marriage, divorce, birth, adoption, etc.).
Organize Your Digital Life
In today’s world, access to your online life is critical. As part of your estate organizing tasks, create a secure, updated list of passwords and login credentials for your online banking, email, social media, and utility accounts. Ensure that your executor and power of attorney have access to the login password for your computer and cell phone as well. Ideally, store this confidential data in a password manager such as LastPass or 1Password or on paper in a locked safe or safety deposit box. Make sure someone you trust knows how to access this information when the time comes.
Speak With Your Financial Advisor
Consult your financial/investment advisor about how to structure your accounts for a smooth transition. For example, adding a beneficiary or setting up a “Transfer on Death” designation on investments can reduce delays and legal hurdles. Clear documentation and the proper setup can prevent your investments from getting tied up in probate, sometimes for years.
Plan for Utility and Subscription Access
If you’re single or live alone, ensure someone you trust has access to your household accounts. From electricity and internet to Netflix and insurance policies, someone will need to know what services you use, how to access them, and what needs to be cancelled or maintained. Consider creating a master list of accounts, billing cycles, and contact information. Consider storing this information in your password manager as well.
Organize Key Documents and Keep Them Safe
Gather important documents, such as your will, property deeds, insurance policies, tax returns, and identification documents. Store them in a waterproof, fireproof safe or safety deposit box and let your executor or trusted contact know where to find them. Also, create digital copies as a backup, and store them in a secure cloud folder or on an encrypted USB drive.
Think of Organizing Your Estate as a Gift
These estate organizing tasks may feel daunting and depressing, but it’s ultimately an act of kindness. By putting your affairs in order now, you make it easier for your loved ones to honour your wishes and avoid unnecessary stress. Like decluttering your home, estate planning creates peace of mind for you and those you care about. Getting started is usually the most challenging part. Take it one step at a time, be persistent, and you will get there.
*Ideally, everyone should have a basic will and power of attorney once they turn 18 years old. At this age, they’re considered legal adults, and parents/guardians no longer have the automatic right to access their medical or financial records. Without these documents in place, loved ones may be unable to step in or assist during an emergency.
Thank you Jane. This is always a difficult topic and feels daunting to consider. Very helpful information.
I know, it’s a topic we all want to avoid but so important to have organized at any age.