5 Overlooked Estate Planning Considerations

"If something happens to me, how can my heirs or executor access the money to pay the bills associated with our funeral, estate sale, etc.?"

We get this question all the time. Although every situation is different, there are a few issues that you need to consider:

Every financial institution has its own procedures.

Once upon a time, your attorney could draft a letter that every institution would accept. Now, every institution has its own requirements for processing your property on to the next generation.  Although there are common requirements, like death certificates, some institutions may require a lot of paperwork to establish new accounts, etc.  

You and your executor should be aware of any complex requirements at your institutions. A simple way to handle this is to call and ask, "If the owner(s) of these accounts die, what is required?" 

Executors will typically need death certificate and letter from the court indicating they are acting as executor of the estate

Security is important. Most financial institutions will be careful about letting someone take control of your assets after you are gone.  Typically, your executor, beneficiaries, and successor trustees will at least need a death certificate.  Executors will also need a letter from the court that confirms their authority as executor of your estate.

Some institutions freeze the account once they learn the account owner has died

Be careful.  Some institutions will immediately freeze an account once they find out about a death of an owner. Your estate plan needs to account for this.  Ask each institution what will happen and write it down (or have them email you so they do most of the work!)

What about ongoing household bills such as utilities?  

This is often overlooked. Even after you pass on, your home may still have utility bills and property taxes. Make sure your executor has instructions to access all of your utility accounts and are aware of any automatic bill payments.

What about online access to accounts?

Those electronic accounts are important.  Email, social media, and online accounts can make it difficult for an executor to understand the full picture. Make sure you have all your accounts listed and organized somewhere safe.  One tool is Dashlane, which securely keeps and organizes your various passwords, and can give emergency access to someone you designate.

Summing Up: Estate Planning

• Get organized: Know where everything is, what is moving, and how often.
• Know what will happen at your institutions
• Leave instructions 

For our clients, we use eMoney Advisor and/or Everplans to help organize the accounts. eMoney Advisor can connect to your various accounts and track expenses. It also has a secure vault where you can leave important instructions. Everplans is specifically designed for estate planning and lets you authorize your executor, trustees, and heirs. For more information, please email us at advisors@athenaprivatewealth.com.