Minnesota residents set up their estate plans to ease the stress during an already painful time for their families. While it’s usually older residents setting up estate plans, an unexpected death can be ten times more painful without something in place – regardless of age.
Being transparent about your wishes and estate plans well before they’re needed can help ease the pain. If you’re not quite ready to estate plan, consider setting up an emergency financial file.
What is an emergency financial file?
An emergency financial file is exactly what it sounds like – a file that contains all important information regarding your financial accounts. This includes, but isn’t limited to:
- Checking and savings accounts
- Retirement accounts
- Lines of credit and/or loans
- Insurance policies
- Important documents (deeds, birth certificate, etc.)
This file will also contain instructions for accessing the accounts, like usernames and PINs. It will also contain the contact information for lawyers, medical professionals, or family members.
If you have any documents related to your estate plan, you’ll also want to put them in the file. Having all this information in one place will make it easy for your family members to access the accounts after you die or become incapacitated.
Security concerns with your emergency financial file
You might be a little nervous about storing all of this information in one place. You’ll want to know where this file is at all times and ensure that it’s safe.
There are several ways to go about this. Some people might opt for a safe deposit box, which can be too restrictive. If you choose this option, you should consider giving a copy to your attorney.
You can also keep the file in a fireproof safe hidden somewhere in your home. Only your spouse or an equally trusted person should know where this safe is and how to access it in an emergency.
It’s important to check the file annually to make any necessary updates. Ideally, you’ll have a long time to create an estate plan and naturally pass the file along. It can be a huge help to your family to plan for all possibilities.
