The loss of a loved one marks a period of intense emotional challenges, but it need not precipitate financial turmoil. By organizing your financial records now, you will immediately gain peace of mind for yourself and ease the burden on your family in the future.

Upon your incapacity or death, your heirs will need to access your important documents and directives, perhaps with little notice beforehand. You can help them by creating a financial map that summarizes how to access the necessary information and outlines the steps required to ensure your final wishes are fulfilled.

Create a digital depository and printed backup. It’s not unusual to store important documents online, often in the cloud. Begin your organizing efforts by creating a checklist of the items you need to collect, both for an online depository and a physical binder. Your goal is to have all the information reside in a single online directory that is backed up by a well-organized, physical binder stored in a secure location. The binder’s cover page should be a financial map that identifies the contents and explains how to access the online information.

Gather all the required information. Your checklist may include dozens of items, such as your will, bank records, powers of attorney, health directives, trust documents, tax returns, deeds and titles, all financial and social media accounts, insurance policies, contracts, and any other documents you deem important to include. Paper-only documents should be scanned to create digital versions that can be incorporated into your online depository. Your binder should contain printed copies of all items in the depository, organized into the corresponding sections.

Deploy the information in an organized way. Online subdirectories and binder sections should share the same organization scheme. For example, you might create separate sections for details regarding retirement accounts, insurance policies, Social Security and Medicare, credit cards and loans, bills, warranties, mortgages, taxes, and any other necessary legal documents. You’ll want to include the current year’s receipts that will be needed to prepare your final federal and state returns.

Coordinate with your executor. Whether a family member, friend, or paid advisor, your chosen executor should know where all the information resides, as well as security items like keys, safe combinations, passwords, encryption keys, and so forth. The executor’s job is to ensure your will and/or other instructions are faithfully executed and that your heirs and beneficiaries receive their proper bequests.

Everyone should make final preparations. Regardless of your age and health, it’s a great idea to organize your information to ensure that your final wishes are carried out. Contact your Advisor at Investment Strategists, and together you can ensure that your affairs are handled in a smooth, efficient, and respectful manner.