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8 Documents That Are Essential to Planning Your Estate

May 16, 2020May 16, 2020 Eleanore

8 Documents That Are Essential to Planning Your Estate

Click here to view original web page at 8 Documents That Are Essential to Planning Your Estate

If you want loved ones to remember you fondly, tackle your estate-planning tasks. Your heirs will thank you for not leaving a legal mess to sort out.

Many of us want to get going on this planning, but don’t know where to start. Here’s what you should know about eight documents that can help you get your affairs in order.

If that sounds like a lot of paperwork, don’t worry: You probably won’t need every document. And if you’re wondering where to find the documents you do need, not to worry: Just head to our partner Rocket Lawyer, where you’ll find everything you need cheap.

1. Last will and testament

A will gives you the power to decide what is in the best interests of your children and pets after you’re gone. It also can help you determine what will happen to possessions with financial or sentimental value. It typically names an executor — someone who will be in charge of following your directions. Finally, you can include any funeral provisions.

Use your will to name guardians for those under your care, including minor children and pets. Designate any assets you are leaving for their care.

If you’re married, your spouse needs a separate will, AARP says.

In the absence of a will, a probate court will name an executor — typically a spouse or grown child — for your estate. Probate proceedings are a matter of public record. So keep private information — passwords, for example — out of your will, as that information could become part of a public document.

2. Revocable living trust

A living trust is another tool for passing assets to heirs while avoiding potentially expensive and time-consuming probate court proceedings.

You name a trustee — perhaps a spouse, family member or attorney — to manage your property. Unlike a will, a trust can be used to distribute property now or after your death.

If you have substantial property or wealth, a trust can provide tax savings.

ElderLawAnswers further explains the differences between trusts and wills. Creating a trust is not a do-it-yourself project. Get an attorney’s help.

3. Beneficiary designations

When you purchase life insurance or open a retirement plan or bank account, you’re often asked to name a beneficiary, which is the person you want to inherit the proceeds when you die. These designations are powerful, and they take precedence over instructions in a will.

Keep beneficiary designation papers with your estate-planning documents. Review and update them as your life changes.

4. Durable power of attorney

This document allows you to choose someone to act on your behalf, financially and legally, in the event that you can’t make decisions.

Don’t put off this chore. You must be legally competent to assign this role to someone. Older people worried about relinquishing control sometimes put off the task until they are no longer legally competent to do it.

5. Health care power of attorney and living will

To ensure that someone can make medical decisions for you in the event you become incapacitated, establish a health care power of attorney — also called a durable health care power of attorney. This is different from the previously mentioned durable power of attorney for financial and legal affairs.

A living will lets you explain in advance of your death what types of care you do and do not want, in case you can’t communicate that in the future. It’s strictly a place to spell out your health care preferences and has no relation to a conventional will or living trust, which deals with property.

“You can use your living will to say as much or as little as you wish about the kind of health care you want to receive,” says legal site Nolo in a detailed article.

6. Provision for digital assets

Decide what to do with your digital assets, including your computer hard drive, digital photos, information stored in the cloud, and online accounts such as Facebook, Yahoo, Google and Twitter. Be sure to include a list of your passwords.

“What Happens to Your Email and Social Media After You Die?” explains how to make these decisions.

7. Letter of intent

For instructions, requests and important personal or financial information that don’t belong in your will, write a letter. Use it to convey your wishes for things you hope will be done. For example, you may have detailed instructions about how you want your funeral or memorial service to be performed.

No attorney is needed. The letter won’t carry the legal weight of a will.

8. List of important documents

Make certain your family knows where to find everything you’ve prepared. Make a list of documents, including where each is stored. Include papers for:

Life insurance policies
Annuities
Pension or retirement accounts
Bank accounts
Divorce records
Birth and adoption certificates
Real estate deeds
Stocks, bonds and mutual funds

Another item helpful for your heirs is a list of bills and accounts, including contact information and account numbers for each, so your representative can settle and close these accounts.

Let us know what estate planning experience or tips you have by commenting below or on our Facebook page. And remember to head to our partner Rocket Lawyer. They’ve got everything you need.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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Thinking about retirement? Don’t forget about your tech.

April 23, 2020April 23, 2020 Eleanore

Thinking about retirement? Don’t forget about your tech.

Click here to view original web page at Thinking about retirement? Don’t forget about your tech.

By Anne-Frances Hutchinson

Here’s an open secret about Americans on the cusp of retirement age: They know how to use technology. Having been in the workforce as the digital age gestated from a fever dream into the driver of nearly every aspect of work and life in the developed world, this cohort understands its transformative power at a level digital natives have yet to grasp. Over the next decade, roughly 132 million Americans 50 and older will spend over $84 billion annually on technology.

As they approach retirement, affluent, well educated seniors are still driving technological development, participating in the digital economy as it grows and changes, and preparing for an aging process that will be largely dependent on emerging technologies to increase satisfaction, comfort, and life expectancy.

However, one of the profound changes retirement brings is access to technology. Leaving the workplace can mean losing a wealth of expensive support, from high speed internet connections and the software programs that allow seamless communication, to hardware that can be impossible to afford on a budget. And yes, that includes the person in IT who knows how to convert documents into PDFs. (Here’s another deeply held secret from a boomer: They absolutely know how to do that. They just love to see your reaction when they ask for your help. Eyerolls are always funny.)

Teasing aside, here are five critical considerations to make before transitioning out of the tech rich workplace.

Make cyber security a priority. The loss of a workplace IT infrastructure means heightened exposure to hacking, so deepening your personal knowledge about security breaches and investing in affordable, personal use security tools is a must. Don’t be put off by any implied condescension you might perceive by seeking simplified help – Internet 101.org is a great place to start the process.
Forget about remembering passwords. Leaving the office shouldn’t mean swapping strong protection of digital assets for passwords that are easy to remember and a breeze for hackers to exploit. Encrypted password managers such as 1Password provide affordable protection, generous storage, and email support.
Enroll in autopay. Just because you’re retired doesn’t mean the bills stop. Making sure they get paid automatically, on time, every month will take a huge weight off your shoulders. On the flip side, any income you have still have coming in: social security, a pension, etc., you can arrange to be automatically deposited in the account of your choosing. Being retired means you should be out there enjoying life, not spending several hours a week doing amateur accounting.
Set up online trading. You want your money to last through a long retirement. Now that you have more time, you might want to take a more hands-on approach to your investments. Services such as Ally Invest and E-Trade make it simple and easy to manage your portfolio and do self-directed trades on a daily basis.
Compromise smartly. The temptation to sacrifice capability for cost can be very compelling, especially when it comes to smartphones. While there is a fun new crop of flip phones hitting the market that may take you back to the simpler days of flip up and gab, like the updated foldable Motorola Razr, prioritize the features that are most important to you — whether it’s a great camera, the ability to use multiple apps, or mil-std ruggedization — and make sure the phone of your choice makes the grade. You’ll want something that can still keep up with your lifestyle and let you video chat with the grandkids.
Think before you ditch. Switching away from a “does it all” desktop system to a tablet or laptop may make sense from a portability standpoint, but be sure your computer investments match the quality of life you’re expecting. Desktops can be much cheaper to buy than laptops, giving you the freedom to buy both. Desktop performance is better, more flexible, and far more robust than tablets; laptops that offer equivalent desktop performance are typically cumbersome and heavy despite being optimized for mobility. If you’re a gamer, crafter, or have a penchant for art, having a desktop in your post-work tech arsenal will be a very worthwhile spend.
Plan your digital estate. You’re planning to leave your work environment, not your entire life, but now is the time to think about what may happen to your digital identity and it’s a risky aspect of estate planning to neglect. In the Digital Cheat Sheet, Everplans recommends the following steps to take:

Make a list of all your digital assets and make a plan on how they should be accessed after your passing. This includes your personal data, passwords, and hardware.
Choose an executor for these assets who will follow your wishes on erasing, preserving, or sharing data, and with whom you want your digital legacy to be shared.
Store this information where it can be readily accessed by a trusted family member, attorney, or your appointed executor.
Legalize your wishes. With the exception of Louisiana, Kentucky, and the District of Columbia, there are state provisions for digital asset legalization. Work with your estate planner to incorporate your digital assets into your will. Remember: Never include passwords or private data in your will, as it is a public document that anyone can access.

Retirement isn’t the end of your life, it’s the beginning of enjoying what you’ve worked so hard for. Set yourself up for success much the same way you did in your career. There’s a whole world of things to do that you might have missed out on. A smart retirement will enable you to make the most of your time while living on the go. Get after it!

Please get your digital affairs in order

February 12, 2020April 22, 2020 Eleanore

Please get your digital affairs in order

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I really wish I hadn’t had cause to write this piece, but it recently came to my attention, in an especially unfortunate way, that death in the modern era can have a complex and difficult technical aftermath. You should make a will, of course. Of course you should make a will. But many wills only dictate the disposal of your assets. What will happen to the other digital aspects of your life, when you’re gone?

There are several good guides to “digital wills” and one’s “digital legacy” out there, including e.g. handling your Facebook and Google accounts, and I encourage you to both go to those links and research the subject further. A few things seem particularly worth noting, though.

One is that this is yet another reason to use a password manager such as LastPass or 1Password . That in turn becomes an itemized list of your online accounts, and comes with a built-in recovery mechanism which can be used to pass them on to your survivors and/or heirs. LastPass (my password manager of choice) actually has a detailed guide to “preparing a digital will for your passwords,” and third-party guides to using 1Password for this purpose exist as well.

Another is the problem of two-factor authentication. What happens in case of an accident which also destroys your phone or Yubikey? Or if your heirs can’t get past your phone password? Do yourself and them a favor: create 2FA backup codes, and add them to your password-manager emergency-recovery kit.

The more technical you are, the more complex your digital affairs are. For most people we’re just talking about email, social media and photos. But for technical people, and in particular developers, things get more complicated. Do you own domains? Do your heirs even know you own domains, and who the registrar is? Are they technical? If not, by the time they figure that out, the domains may well have expired. Do you have services running on AWS or GCP or Digital Ocean? Do you have private GitHub repos, or public ones with a nontrivial number of stars / forks / issues / wiki pages? Do you administer a Slack workspace?

If you find yourself nodding along to the above, you may want to identify a separate “technical executor” and give them some guidance regarding what you want done with all of the above. Even if they have access, nontechnical people may not really understand that guidance. A little advance work can make it substantially easier for those tasked with taking care of your affairs.

Finally, what about any cryptocurrency you might personally hold? Generally, cryptocurrency wallets come with some sort of recovery seed. Is yours in a safety deposit box somewhere? Do your heirs know it’s in a safety deposit box somewhere? If you want to pass your bitcoins on to them, you’re probably going to have to let them know. (Obviously there is a security trade-off here; depending on how much we’re talking about, you may wish to be more or less cautious about this.)

So, to summarize: Do further research on digital wills, and construct one. Use a password manager, which acts as an itemization of your online accounts and ensure your heirs can access its emergency recovery key. Provide them 2FA backup codes as well, and recovery seeds for your cryptocurrency wallets if any. Identify a technical executor as and if appropriate. Also — and this is pretty key — make sure that a few trusted people know you’ve done all this. Won’t do them much good otherwise.

You may well even have occasion to thank yourself for it, in case of some hardware loss or disaster. Regardless, your heirs will definitely thank you. None of us think that we’ll meet our demise randomly, without warning — but I’m here to tell you, from grim recent experience, it does happen. Be prepared.

Ask Kip: Create a digital estate plan

February 11, 2020April 22, 2020 Eleanore

Ask Kip: Create a digital estate plan

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Q: What will happen to my social media or other online accounts after I die?

A: What will happen to these online accounts after your death depends on the laws in your state, the types of accounts involved and the terms of service governing the accounts. An executor does not automatically gain access to the accounts unless the deceased person has made specific arrangements. And heirs often find that they don’t have clear authority to access or manage a family member’s accounts. But you can take steps to increase the likelihood that your digital footprint will be handled according to your wishes.

You’ll need to make a list of what you have, name someone to act on your behalf, and provide your designee with access and instructions. Start by creating an inventory of your digital assets, including all of your online accounts. As you create a list of the accounts and their passwords, note your wishes or instructions for any you would like handled in a specific way. For example, you may request that your social media accounts be deleted or that digital photos stored in the cloud be shared with specific people.

Problems may still arise. Passwords expire, people forget to update their lists, and many sites require two-factor authentication that could go to a cell phone or email address that is no longer accessible, says Sharon Hartung, author of Your Digital Undertaker. Or a website’s terms of service agreement may prohibit anyone other than the original user from accessing the account. Many sites delete accounts upon receiving notice that a user has died.

In recent years, most states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act, which allows you to designate a legal representative to access your digital assets after death. You can provide that access through a will, power of attorney or trust.

A small but growing number of online services have started to offer users a way to allow access to their accounts after they die. Facebook, for example, allows users to have their accounts deleted upon death or to designate a digital heir with the right to manage portions of the account, which will be turned into a memorial page. Google will let you select up to 10 trusted contacts who can access your Gmail, photos and more if your account is inactive for several months.

(Kaitlin Pitsker is an associate editor at Kiplinger’s Personal Finance magazine. Send your questions and comments to moneypower@kiplinger.com. And for more on this and similar money topics, visit Kiplinger.com.)

Get Your Digital Accounts Ready In Case of Death

February 7, 2020April 22, 2020 Eleanore

Get Your Digital Accounts Ready In Case of Death

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Antonio Giovanni Pinna

On March 7, 2019, Myrna M. DeLeon passed away, days before her 65th birthday. “Her death was completely unexpected,” said her daughter and my brother-in-law’s wife, Casey. In the emotional aftermath for the family, one thing made the grieving process less stressful: Myrna’s “in case of death” preparations. She had filed important documents in a safe and kept a categorized “little black book of information.”

“She was a nurse who was organized in the operating room, and she took that skillset of organization and advanced thinking into our home life as well,” Casey said. “For example, ‘B’ was not for people with the last name starting with B, but for banks and other financial institutions. It listed account numbers for policies and phone numbers to call for claims.”

Casey and her brother had set up their mom’s phone and email, so they knew her passwords for those, which proved essential. “All of her contacts were in her cellphone, and I needed those to inform them of Mom’s passing. I also needed to ask her colleagues how their union benefits worked so I could get answers as quickly as possible.”

Preparing for your eventual demise is a gift your loved ones will appreciate even as they mourn your loss — and it will give you peace of mind in the present, too. Most people have thought about setting up a will and doing other estate planning, but you should also arm your family with the most essential information they’ll need in the immediate days and weeks after you’re gone, preferably in one easy-to-access place. Here’s how to set up a digital version of Myrna’s “little black book” for simple and secure information sharing with family members and trusted friends.

Step 1: Share your account logins and other secure information with a password manager

Everyone should use a password manager, software that securely and conveniently stores all your account logins as well as notes you want to keep under virtual lock and key. With 1Password or LastPass, Wirecutter’s favorite password managers, you can share the critical information your family will need to know after you’re gone, such as important contacts and insurance details. The individual plans offer basic sharing features, but for these purposes a family plan is better because it provides accounts for your whole family.

With 1Password for Families ($60 per year), up to five people get their own account, you can easily move or copy items across accounts, and a designated person can help someone else in the plan recover their master password. LastPass Families ($48 per year) offers similar features for up to six people. Wirecutter prefers 1Password for its combination of security, compatibility with various devices, and ease of use, but if you want to save a few bucks a year, LastPass is a good option.

To share vaults in 1Password for Families or folders in LastPass Families, the process is roughly the same:

Click People in 1Password or Manage Family in LastPass, and invite members via email.
Once they accept your invitation, each family member creates a master password for their account and gains access to the shared vaults or folders.
Each family member can then add passwords, secure notes, bank info, contact info, files, and more in the shared vaults or folders.

To access all this information, the only thing each family member needs to remember is the one master password they set up for their account.

Step 2: Record and save emergency info

In addition to passwords, you should make other personal information readily accessible. These items include:

Instructions in case of death: Be sure to include details such as burial or living-will wishes.
Important logins or security codes that aren’t website logins: List your computer password, your phone PIN, the code to the fireproof safe, and so on.
Important contacts: Indicate who to contact at your workplace, as well as your lawyer, accountant, will executor, and insurance agents.
Locations of valuables and critical papers: Note the whereabouts of wills, passports, Social Security cards, birth certificates, and any other legal documents that are difficult to get copies of.
Recurring-bills details: Specify when the bills are due and how they’re paid (if they’re autopay or where to send a check).
Financial account details: List your retirement and investment accounts, insurance policies, bank accounts, and credit cards.

You can create a secure note in your password manager for each of the items above. Or, if you want a free option or if some family members aren’t likely to use a new app, you can create a password-protected spreadsheet that contains this information. We’ve created an emergency-information template as an Excel spreadsheet (which you can import into Google Sheets following these instructions from How-To Geek) for you to get started.

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Step 3: Set up dead-man switches and assign custody for your digital accounts

A dead-man switch is a security feature on trains that requires operators to hold a handle on a control board so that if they let go, the switch applies the emergency brakes. A dead-man switch in non-transit terms notifies loved ones and can disable your accounts if you fail to respond to prompts. This feature is especially useful for people who live alone, because you want others to notice you’re gone as soon as possible. Google is perhaps the most important account you might want this feature for, if you use Gmail or store files in Google Drive: You can instruct the Inactive Account Manager to either delete your data or share your Google accounts with someone you trust after a period of inactivity.

Pick one person to manage your social media accounts to either preserve your memory or delete those accounts. Facebook, LinkedIn, Tumblr, Twitter, and other social media accounts all offer options for enabling your loved ones to manage your accounts, but you’ll need to change those settings before you die, of course.

Step 4: Drill practice — teach your loved ones how to survive without you

After you’ve done all the above, you should share the details with your family (you can also share select information in the password manager with a power of attorney or a trusted friend). Make sure they accept the password manager invite, install the apps, and know how to use them. Set up a calendar reminder to update your info at least once a year. And since no one likes talking about death, have that talk while you’re healthy so that your family won’t worry unnecessarily. Reassure them that all this preparation is a “just in case” measure, and you’re doing it for everyone’s peace of mind.

[ If you are having thoughts of suicide, call the National Suicide Prevention Lifeline at 1-800-273-8255 (TALK) or go to SpeakingOfSuicide.com/resources for a list of additional resources. ]

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A version of this article appears at Wirecutter.com.

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Thinking about retirement? Don’t forget about your tech.

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