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It Happens - What do I do?
It happens all the time - a sudden death
or disability leaves the surviving spouse or adult children scrambling
to find and fit together pieces of a parent’s financial puzzle. At
best, children and spouses are amazed by their parent’s organizational
skills and diligent saving habits. At worst, the loss is compounded by
having to wade through a lifetime of paperwork. Whether figuring out
how to handle the cost of a funeral and taxes or how to navigate the
health care system, this is no time for family secrets.
Often parents who have worked, saved
and lived prudently their entire lives don’t want their children to
know the extent of the assets they have accumulated. Others are
embarrassed because there aren’t any assets. Either way, not sharing
information or leaving disorganized and inaccurate records creates
serious financial and emotional burdens for the children or surviving
spouse. These are issues that every family should address long before
an illness or accident leads to an intractable situation for those
left behind.
Nothing can protect a family from the
sorrow of losing a loved one. But being prepared to handle the
business side of life and death is truly a gift to one’s heirs.
Here’s how Ralph Montgomery, member
American Academy of ElderLaw Attorneys, and partner at the Dale
Woodard Law Firm, counsels his clients:
Create a contact list which includes
names and numbers for all professionals involved with your assets -
attorney, CPA, financial advisor, insurance brokers, etc.
If you have a Will have it reviewed at
the Dale Woodard Law Firm. If you don’t have a Will see Ralph to have
a will prepared, and keep a copy of the will in your files at home,
with a notation as to the location of the original (never keep the
original in your safe deposit box). Also, have prepared and keep
copies of a durable power of attorney and health care proxy so that
your affairs can be managed and health care decisions can be made on
your behalf if you become mentally incapacitated.
Create an asset list that includes all
bank and brokerage accounts, CDs, mutual funds, money market funds,
insurance policies, annuity contracts, IRAs, retirement accounts, etc.
Include the name of the financial institution and the account number.
Information as to any outstanding liabilities should also be included
(e.g., loans, credit card account information, etc.).
Don’t keep original stock certificates
or bonds in your possession - place them in a brokerage account. Even
the best record keeper may have difficulty keeping track of events
such as stock splits or other activities with respect to a particular
stock, and reconstructing this after death is both costly and time
consuming.
If you own one or more pieces of real
property, the deed, mortgage and title insurance policy, along with
homeowners’ association or condominium information, should be kept
together.
Keep a separate file for each insurance
policy, along with the business card or contact information for each.
Make sure the files contain the contracts. Your auto or homeowner’s
insurance policy may provide some ancillary death benefits, but many
companies will not pro-actively tell your heirs unless they know to
ask.
Have copies of all your beneficiary
designations in a file so that there are no mysteries about your
intentions for IRA and pension accounts, insurance policies or annuity
contracts.
Keep a list of any bank in which you
have a safe deposit box and make sure your co-owner or deputy knows
where the keys are located.
Information on your car - title,
registration, and insurance policy - will be needed so that the car
ownership can be properly transferred. Keep a copy of the policy and a
copy of the registration, along with the car’s title, in a labeled
folder.
Most importantly, make arrangements
with Ralph for a legal check up. You owe it to yourself and to your
loved ones.
 Ralph L. Montgomery, Jr.
- Member American Academy of ElderLaw
Attorneys.
DALE WOODARD LAW FIRM
1030 Liberty St.
Franklin, PA 16323
Phone 814-432-2181
Fax 814-437-3212
www.dalewoodard.com
montgomerylaw@csonline.net
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