You’ve spent years building your life. Your home, your savings, your investments, your belongings, your memories and everything else that makes your life yours. But if you suddenly couldn’t manage things yourself, how much of that life could someone you trust actually find?
You know where everything is. You know which drawer has the important paperwork. You know the name of the person who handles your investments. You know which insurance company you’ve dealt with for years. You know where your will is kept. You may even know that the password to an old email account is connected to something else.
But your children or executor may not know any of this. If they ever have to step in, having to search for information can add another layer of stress and uncertainty during an already difficult time.
Estate planning can make that process easier. A little organization now can give the people you trust a clear place to start and help them protect the life you’ve spent years building.
So, if someone had to step in for you tomorrow, could they find these things?
1. Your will and important documents
Let’s start with the obvious one: where is your will? And does the person you’ve named as your executor know where the original is kept and who prepared it?
Take a few minutes to ask yourself: Where is the original? Who prepared it? When was it last reviewed? Who is your executor? Is there an alternate executor? Does your executor know where to find it?
Depending on your circumstances, there may also be powers of attorney, insurance policies, property documents, agreements, tax records, or other important paperwork that someone may need to locate.
You don’t need to hand over every piece of private information. Your executor and the people who may need to help you simply need to know where the important documents are and who to contact if they have questions.
One practical option is to create a simple “important documents list”. Note what exists, where it is located and who to contact when something needs clarification. Think of it as creating a map for the person who may eventually need to find their way through everything.
2. A clear picture of what you own and owe
Your family may know that you own a home or have investments. Would they know where all of your accounts and financial information are?
You may have several bank accounts, investment accounts, pensions, registered accounts, insurance policies, real estate, business interests or valuable personal belongings. There may also be mortgages, loans, credit cards or other significant debts.
A “basic asset and liability inventory” can give them a starting point. It could include your home and other real estate, bank and investment accounts, retirement or registered accounts, life insurance, pensions, business interests, vehicles, valuable jewellery or collections, artwork and other significant personal property. Include major debts such as mortgages, loans, lines of credit and other financial obligations.
You don’t need to record every dollar, start with the institutions and the big picture. In fact, Canadian estate administration can require the legal representative to identify assets and liabilities and deal with tax obligations, so having organized information can make the process considerably easier.
And remember, your financial life will change over time, so plan to review the list once or twice a year. You may change financial institutions, buy or sell property, update investments or acquire new assets. Put a reminder in your calendar to review your list regularly.
3. A secure way to access your digital life
This one is becoming more important every year.
Your phone and computer may contain photographs, emails, contacts, financial information, documents, subscriptions and access to accounts your family may eventually need to manage. They may also contain years of memories that are deeply meaningful to you.
Think about how the right person could access this information if they needed to. A reputable password manager with an emergency-access feature, secure instructions or another arrangement appropriate to your circumstances may be worth considering. The person you trust should know that the system exists and understand how to begin the process.
Security remains important throughout this process. Avoid putting sensitive login information directly into your will or other documents where it may not be appropriate.
The goal is to give the right person a safe way to access what they need when the time comes.
4. The belongings that matter
Not everything important will appear on a bank statement.
You may have jewellery that’s been in your family for generations, a collection you’ve spent years building, artwork, tools, a vehicle or something else that has special meaning to you. Photographs, letters, family heirlooms and personal possessions can also carry enormous sentimental value. Your family may know about some of these things, while others may be stored somewhere they would never think to look.
Take some time to think about the belongings that could be difficult to identify, locate or understand. Create a simple list that can answer these four questions: What is it? Where is it? Who should know about it? Is there anything important to understand about it?
Sometimes a few words about the history or meaning of an item can be just as helpful as knowing where it is.
5. Your instructions and the people who can help
Finally, think beyond the documents.
Who is your lawyer? Your accountant? Your financial adviser? Your insurance professional? Is there someone else who understands an important part of your financial or personal life?
There may also be personal details your family would want to know. You may have preferences for a funeral or memorial, people you’d want contacted, a charity that’s important to you, or other wishes you’d like your family to understand.
These details can be shared through a separate letter, note or conversation.
You can keep the conversation simple: “I’ve been getting organized and I’ve put together some information that will make things easier if you ever need to help me.”
It’s a practical conversation that can give the people you love greater clarity and peace of mind.
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Getting organized can feel like a big project when you’re thinking about everything at once.
Start with the thing that would be hardest for someone else to find.
Find your will. Make a list of your major assets and liabilities. Review how someone could securely access your digital life. Write down where your important belongings are. Make a list of the professionals who help you. Tell someone where to begin.
Then keep building from there.
You’ve spent years building your life. Taking some time to organize it can help the people you trust protect it when they need to step in.
This preparation can also be useful during your lifetime. You may become seriously ill, spend time in hospital, lose capacity, or simply need someone to help manage your affairs for a period of time.
A Simple 30-Minute Starting Point.
If you’ve been putting this off, you don’t need to wait for an entire weekend to get organized. Set a timer for 30 minutes and write down:
- Where is my will?
- Who is my executor?
- Where is my financial information?
- How would someone securely access my digital life?
- Who are the professionals and people they should contact?
That’s your starting point.
You can add details as you go and review everything regularly as your circumstances change.
The goal is to make sure the people you trust have somewhere to begin and the information they need to help manage the life you’ve built. You’ve worked hard to build your life, so taking the time to organize it is one simple way to help protect it.