Have you ever thought about what your family would have to do in the first few days and weeks after your death? You may have carefully created a last will and testament and chosen someone you trust to serve as your personal representative. That is an important step, but there is another question worth asking. Will that person know what you own, where your important information is located, and which institutions need to be contacted?
For Florida families, estate planning should not stop with choosing the right people and signing the appropriate documents. Making your affairs understandable and organized can help the people you trust carry out their responsibilities when the time comes.
Legal Authority Does Not Create a Road Map
In Florida, the person responsible for administering a probate of an estate is generally referred to as the personal representative.
Your last will and testament can nominate the person you would like to serve in that role. If appointed by the court, the personal representative receives legal authority to administer the probate of your estate.
That authority, however, does not automatically tell the personal representative where your bank is, which investment accounts you own, whether you have life insurance, or where important records are stored.
Someone can be legally prepared to act and still have very little idea where to begin.
Think About How Much of Your Financial Life Is Online
Years ago, families could often learn a great deal about someone’s finances by looking through the mail or a filing cabinet.
Today, many statements are delivered electronically. Bills may be paid automatically. Investment accounts may be managed entirely online. Insurance information, tax records, and other important documents may exist primarily in digital form.
If no one knows that an account exists, simply identifying your assets can become more difficult.
This does not mean that you should give passwords to everyone in your family. It does mean you should consider creating an organized record of the institutions, accounts, and resources that may need attention.
Create an Inventory of Important Accounts
A basic inventory can give your personal representative a useful starting point.
Consider documenting the financial institutions at which you maintain accounts, retirement plans, investment accounts, insurance policies, real estate, business interests, and other significant assets.
You may also want to identify recurring financial obligations and important professional contacts, including your Florida estate planning attorney, accountant, financial advisor, and insurance professional.
The goal is not necessarily to include sensitive account credentials in one document. The goal is to make sure that important assets are not overlooked simply because no one knew they existed.
Digital Assets Deserve Attention Too
Your digital life may contain property and information that needs to be addressed as part of your estate planning.
Email accounts, cloud storage, online financial platforms, social media profiles, digital photographs, subscription services, and other online accounts can all create questions after death or incapacity.
Florida law addresses fiduciary access to certain digital assets, but access can depend on the type of account, the directions you provided, applicable terms of service, and your estate planning documents.
Discussing digital assets with a Florida estate planning attorney can help you determine whether additional planning is appropriate.
Do Not Assume Sharing a Password Solves Everything
It may seem easiest to simply give a trusted family member your passwords, but access to digital accounts can involve legal considerations and security considerations.
Financial institutions and online platforms have their own procedures for handling the accounts of someone who has died. Your personal representative may need to provide documentation showing their legal authority, before an institution will release information or permit certain actions.
A password alone does not replace the legal process.
Instead, consider using secure methods for maintaining important information and discussing how your digital and financial records should be handled with your Florida estate planning attorney.
Make Sure Your Estate Planning Documents Are Easy to Locate
Imagine having a carefully prepared Florida estate plan that no one can find.
Trusted family members should generally know that you have completed estate planning and where the appropriate documents or information can be located when needed.
Would your personal representative be able to identify your major assets, locate your important documents, and determine who to contact?
Would your personal representative know how to contact the Florida estate planning attorney who prepared your plan?
You do not need to share every private detail of your estate with your entire family. Providing the appropriate people with a clear starting point can still make an enormous difference.
Review the Plan as Your Financial Life Changes
Accounts open and close. Financial institutions change. Property is bought and sold. People change advisors. Digital services come and go.
An account inventory created several years ago may no longer be useful if it has never been updated.
We highly recommend that you review your Florida estate planning documents with your estate planning attorney. Together you can look at changes to family, health, finances, and business.
Ask whether your personal representative could identify your major assets, locate important documents, and determine whom to contact.
A Good Estate Plan Should Be Usable When It Is Needed
Choosing a capable personal representative is important, but helping that person understand where to begin can be just as valuable.
Estate planning is not only about creating legal authority. It is also about reducing unnecessary confusion for the people who may someday be responsible for carrying out your wishes.
At Swank Elder Law, we help individuals and families throughout Florida create comprehensive estate plans designed to work in real life, not simply exist on paper. If you are unsure about whether your current plan gives your loved ones the guidance they may need, we can help you review your documents and identify areas that may deserve additional attention.
Contact Swank Elder Law today to schedule a consultation and make sure the people you trust will have more than just authority. Make sure that they have a clear place to begin.