A few years ago, a new client who lost his wife prematurely came to me with a large box full of papers that included several pieces of financial information including a dozen or so old life insurance policies. He had no idea if the life insurance policies were in force or not. Needless to say, investigating the contents of this large box was quite time consuming. During one of the lowest points in his life, losing his wife of thirty years, this gentleman and his children were tasked with pulling the pieces of their financial puzzle together.
Fortunately, situations like this can be avoided. Take the time to organize your financial affairs and ensure a close family member or friend knows where to locate important documents such as: your estate documents, a copy of your financial statement, various business agreements, copies of life insurance policies, real estate deeds, investment accounts, important passwords, etc. This will assist those responsible for handling your affairs. Next, communicate your plan to your family so that your good intentions will not be misunderstood and lead to potential family conflict after you are gone.
Have you organized your affairs and communicated your intentions to a trusted family member or close friend? If not, what are you waiting for? You never know what tomorrow brings!
Sign up for our monthly e-newsletter to stay informed on how to overcome related succession planning issues.
