🤦🏻♀️Are You Missing a Crucial Piece of Your Estate Plan?
If something happened to you tomorrow – whether it be a temporary setback or more permanent - would someone be able to easily step in and manage your affairs?
I get questions all the time about the legal documents in an estate plan - wills, trusts, powers of attorney, and all the other formal pieces. But here’s the part almost everyone overlooks: those legal documents are only half of a complete estate plan.
The other half – the piece that allows someone to step in and manage things when it’s needed - is the organization of your important documents, records, and information. Without it, even the best estate plan can turn into a scavenger hunt at the worst possible time.
In my experience, this lack of organization is what causes the most frustration, anger, and overwhelm for families. And not surprisingly, often people don’t realize how unorganized their own lives are until they’re forced to untangle someone else’s.
So, in this post, I’m going to walk you through 1) What information your executor or family will need and 2) Simple ways to organize everything.
Before we get started, however, let me explain why this organizational half is so crucial:
1. It Reduces Stress During a Time of Grief
Your loved ones will already be hurting. Trying to figure out what accounts you have, hunting for documents and passwords, or debating among family members about what you wanted, makes it so much worse.
I’ve heard many “nightmare” stories from people who had to deal with an unorganized estate. The common thread in all of them is that they felt it took their focus away from where it should be – being allowed to grieve – and replaced it with pain and struggles that didn’t need to happen.
One person shared that after finding a touching note her father had written, she realized: “That was the father I loved and wanted to hold on to. That was who I grieved. I got so caught up in the financial and legal mess, I had almost forgotten.” To another, who was overwhelmed after the loss of her husband, it was “the worst possible time to have to figure things out.”
2. It Prevents Delays and Legal Roadblocks, Saving Time, and Money
Searching for documents or accounts slows down the entire estate process and often increases costs. Good organization makes everything move faster, smoother, and with fewer complications.
3. It Protects Assets from Being Overlooked
I recently wrote about a long-term care insurance policy that didn’t get used when it was needed because the family wasn’t aware it existed until it was too late.
Another common issue: forgotten accounts. When a financial or other institution can’t locate an owner - often because they have no forwarding address – the account funds are eventually transferred to the state’s Unclaimed Property department. This department safeguards the money until someone - usually a relative - files a claim. This happens more often than people realize, including in my own family.
After my father passed away, I checked my state’s database and to my surprise discovered unclaimed money for stocks held by my mother who had passed away 17 years earlier!
4. It Helps Ensure Your Wishes Are Followed
If you’ve taken the time to document your wishes, organization is what ensures they’re actually carried out. Clear, organized information leaves less room for confusion, prevents misunderstandings, and can dramatically lower the chances of siblings or beneficiaries disagreeing about what you ‘would have wanted.’
What Information Your Executor or Family Will Need
I always find that setting up categories is a helpful way to begin as you gather your information. You can create as many or as few as you like, but for this post I’m going to focus on four: legal, financial, digital, and personal/practical.
The following are examples only. Some may not apply to you, and there may be additional records specific to your situation that you’ll want to include:
1. Legal Documents
Will and/or trust
Powers of attorney
Advance directive (living will)
Funeral or burial preplanning
Prenuptial or marital agreements
Property deeds and titles
Business ownership documents
Court orders (divorce, custody, judgments)
Military service discharge papers
2. Financial Accounts & Assets
Bank and credit union accounts
Investment and retirement accounts
Life insurance policies
Long Term Care insurance policy
Pensions and employer benefits
Mortgages, loans, and debts
Inventory of personal valuables
Loyalty points and reward programs
Rental property or business income records
Tax returns for prior three years
3. Digital Assets
Email and social media accounts
Passwords (written or stored in a password manager or even on a thumb drive)
Online subscriptions, memberships, and autopay items
Digital photo libraries and cloud storage
Cryptocurrency or digital wallets
4. Personal/Practical
Contact list of important contacts and key people
Safe deposit box information
Location of keys, lock combinations, or safes
Medical history or doctor contacts
Household maintenance details
Pet care instructions
You don’t need to do all of this at once. Even starting with one category puts you far ahead of where most people are.
Simple Ways to Organize Everything
We all think and work differently, so there’s no “right” way to organize your information. What matters most is that your system is clear, easy for others to follow, and simple for you to maintain as updates are needed. Here are a few options:
1. Create a “Legacy Binder” or Folder
Use a three-ring binder or folder to hold copies of essential documents, account lists, and instructions. Separate documents from your original categories into more specific labeled tabs, such as: Legal, Financial, Property, Insurance, Medical, Contacts, Digital, Taxes, and Personal.
This approach is simple, user-friendly, and easy for loved ones to find what they need.
2. Set Up a Home Filing System
A dedicated drawer or file box with clearly labeled folders – like those noted above - also works well for people who prefer a detailed physical system. It’s easy to update and often can hold more documents than a binder.
3. Use Digital Tools (or a Hybrid System)
If you prefer digital tools, store PDFs in secure folders and keep original documents in a fireproof safe. For example, you might keep your original will and trust in a home safe, store scanned documents in a cloud folder labeled “Estate Plan,” and use a password manager such as LastPass or 1Password with an access feature for a trusted person.
4. Create a Master Information Sheet
A single master information sheet – or a summary sheet for each category - will give both you and your loved ones a quick and effortless way to see what you have, where it’s located, and any instructions that are needed.
Because I know how often families struggle without this kind of summary, I created simple forms designed to capture exactly this information. These forms are included with my book or can be purchased separately through me for a small fee. If you’d like to learn more, connect with me here.
No matter whether you purchase premade forms, or create your own, having a summary as part of your organization will make it complete.
Final Thought: Don’t Leave Your Estate Plan Only Half Done
Estate planning is far more than signing legal documents. Including clear organization and direction shows how much you care about the impact your passing – or incapacity - will have on those you love and on the grieving process they’ll experience.
Taking the time now to put everything in order is one of the greatest acts of love you can leave behind. And I often hear how it brings tremendous peace of mind to know everything is in one place.
Want Help Getting Organized?
I know all of this can feel overwhelming, but it doesn’t have to be. If you’d like support in setting up a system or organizing your information, or if you have a group that would benefit from a workshop on this topic, I’m here to help. Reach out for a free consultation.
