It can be incredibly beneficial for you to put together an emergency financial file. The file will go a long way toward your estate planning goals. Set up one of these as soon as possible to prepare for this important legal process.
Overlooking financial files
Even though many people recognize why they should have their financial and legal documentation in order, it can be easy to overlook putting together an emergency financial file containing the basics of your finances. Having such a file helps ensure that your family has the required information if something happens to you. Another benefit to having this is that it will help to have all your financial information together if there’s a natural disaster that impacts your home and place of business.
How to create this file
Your loved ones should know where you have your accounts and how you would like your estate handled. Without this information, your heirs may have difficulty managing your estate, leading to high legal fees. Even if you don’t know where to start, it’s a good idea to put important passcodes, account information, and resources in one spot that you can build on over time.
Your financial file should include the following:
- Cover letter that tells your loved ones what the file contains
- Your estate plan and will
- Financial account information such as logins, account names, balances, etc. for your loans, mortgages, insurance policies, checking and savings accounts, emergency contact information, birth certificates, Social Security cards, deeds, and more
Putting together an emergency financial file can reduce stress for yourself and your loved ones. Don’t wait until there is an emergency or medical crisis: Get it done now to gather your financial information together and create a file. Doing so is in your best interest as a part of your estate plan.