How to Organize Your Financial Life (and Paperwork)

A woman sits on the floor surrounded by boxes of paperwork. — (Image credit: Getty Images)

Everyone is talking about the incoming Trump administration, and we’re hearing a range of predictions about future tax proposals and planning options. But sometimes it’s best to tune out all the noise and focus on the basics: If something were to happen to you, would your family know who to contact and where your financial information and documents are located? Do you have your “contingency plan” in place?

Having your finances in order is only helpful to your family members if they know where to look. By organizing your financial information and estate planning documents and informing your family where everything is stored, you’re making it simpler for them to assist you if you’re ever unable to manage things yourself. It also will streamline the process of settling your estate after your death.

If you become incapacitated or pass away without fully documenting your assets and financial accounts, those assets could then be overlooked and not passed to your heirs the way you intend. In fact, if your heirs don’t know about a particular investment account or life insurance policy, and it goes unclaimed, the assets may end up with your state treasurer through a process known as escheatment. According to the National Association of Unclaimed Property Administrators, there currently is an estimated $70 billion worth of unclaimed property held by state treasurers across the United States.

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To ensure your family can access your financial details, and to simplify their lives, consider creating a file of important documents, account information and key advisers. With everything organized in one place, your family will be able to locate your important financial paperwork quickly whenever needed. Think of it as a resource that provides quick access now, while delivering peace of mind for your family in the future.

Whether it’s a binder, a folder in your home safe or a password-protected digital location, here are the key components to include in your contingency plan file.

List all your financial accounts

A complete list of all your bank and investment accounts, as well as up-to-date contact information for your advisers, is essential in case of an emergency. In the face of unexpected illness or accident, quick access to financial resources can make a significant difference in managing expenses, understanding accounts or arranging care. If your financial details are scattered or unclear, it could delay critical decisions or create stress for your loved ones.

Your list should include:

Investment accounts
All retirement account details: IRAs, Roth IRAs, 401(k)s, pensions
Bank checking and savings accounts, including safe deposit boxes
Credit card accounts and outstanding loan statements
List of bills and expenses that are set up on autopay and from which account

Clear organization provides peace of mind knowing that assets are accessible when needed most. It's also a good idea to include a contact list of your financial advisers, attorney, accountant and other relevant professionals. This will make it easier for your loved ones to reach out and get the support they need.

Access to all your passwords

Nearly every financial account, credit card, computer or phone requires a password. If your spouse or heirs don’t know your passwords, they’ll be locked out, which can cause big headaches.

Gather and store all electronic passwords in a secure format. Storage methods range from low-tech to high-tech and depend upon the level of security you require. There are several digital “password wallet” apps available online that make it easy to list and store all your passwords. Whichever method you choose, to avoid a serious password problem, ensure that someone can access your computer and accounts if you are unable to do so.

Your property deeds and titles

Titles for real estate and vehicles tend to get misplaced and forgotten. But if your heirs need to sell the property or get an updated appraisal, they’ll need the title. Make sure all titles, including for burial plots, are stored within your file.

Estate planning documents and powers of attorney

Your file should also contain copies of your will, trusts, business agreements and powers of attorney for health care and financial decisions, along with contact information for your estate planning attorney, named executor and trustees. If the originals of any of these documents are maintained at your attorney’s office, or in a safe deposit box, include that information to ensure easy access when needed. If you have named someone as agent under a power of attorney, make sure that person knows that they are named and understands their responsibilities.

Together, these important documents tell family members what your wishes are for end-of-life care, the transfer of your assets and which attorney or trustee to contact after death.

Include all insurance information

Your insurance can’t help your family if they can’t locate your policy number or don’t know the carrier. Keep copies of all policies and insurance cards in your contingency plan file, including agent contact information for life, health, long-term care, home, vehicle and other applicable insurance.

Copies of identification documents

Make extra copies (front and back) of your driver’s license, passport and Social Security card for the file. The fact that you carry some of these documents with you leaves them vulnerable to misplacement or loss.

Preparation means updating and communicating

Once your contingency plan file is in place, let your close family members know it exists and where you keep it. Imagine the relief they will feel knowing that all the necessary information is readily available.

As you add new accounts or your life changes, revisit your file annually to ensure it remains accurate and relevant.

You can’t plan for every circumstance in your life, but you can be prepared for uncertainty. With a contingency plan file, you and your family can have peace of mind knowing that they can face unexpected events with certainty.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Leslie Gillin Bohner is Chief Fiduciary Officer and General Trust Counsel at Fiduciary Trust International. She oversees the administration and delivery of trust services and leads a national team of fiduciary professionals. She is a member of the firm’s Executive and Management Committees and joined Fiduciary Trust International in 2020 as a result of the company’s acquisition of The Pennsylvania Trust Company. Leslie has more than three decades of experience serving high-net-worth individuals and families.