Estate planning can be overwhelming. There are a number of factors to consider when planning the transfer of everything you own at a time when you no longer are able to participate in the transfer. However, as an Atlanta estate planning attorney, I know that not having a proper estate plan in place can cause many problems after your death. It’s important that you prepare the proper documents, and that your family knows where to find them and what information is contained in them so that things can go as smoothly as possible in the event of an accident or illness. This idea can even be expanded beyond just estate planning documents to include documents which can help you or your family in the event of any kind of financial emergency. This “financial emergency kit” should contain not only your estate planning documents but also other important documents which may be needed in case of emergency.
Some items to include in your financial emergency kit might be considered “no-brainers.” For example, the kit should include your house, life, disability and auto insurance documents. In the event of a house fire, family death, or incapacitating automobile accident, you will need these insurance documents. The kit also should include other items like copies of your house keys and car keys, and your estate planning documents. Estate planning documents encompass not only your will, but also any powers of attorney or healthcare directives you may have.
Other items for your financial emergency kit might not be so obvious. Your kit should include tax documents, and not just documents for the upcoming tax deadline but past tax returns and the documents to support them as well. Additionally, if you hire a CPA or other professional to handle your taxes, it is important to include his or her contact information. You will also want your kit to include contact information for your financial advisor, if you have one, and a list of information regarding all of your important accounts. This list should not only include the location and account number of your various bank accounts, but also the user ID and password login information for accessing any online accounts you have that may be important for your family to access, should something happen to you. Lastly, your kit should include enough cash to handle the costs of probate. The probate process can cost anywhere from $500 to $2,500 and it is important that your family be prepared for the process. Alternatively, your kit could include an ATM card, along with your PIN.
Your financial emergency kit should be kept in a safe place, like a fire safe. However, if you keep your documents in a fire safe, make sure that everyone who may need access to the fire safe knows not only where it is, but how to open it. Alternatively, your financial emergency kit can be stored on the internet, or “cloud.” This means that the kit would be accessible from many different places. However, this presents its own challenge in that you must ensure that everyone who may need to access the financial emergency kit knows not only where to locate the kit on the internet but also basic knowledge about using the internet. Storing your kit in the cloud may also present challenges in that original documents cannot be contained on the internet, and in some cases original documents may be required.
As a Georgia estate planning attorney, I have years of experience with assisting my clients with planning for the unexpected. If you have questions about drafting your estate planning documents, or if you want to discuss the preparation of documents for your “financial emergency kit,” please email me or call my Atlanta probate firm at (404) 445-7771.
