We did a very adult thing a few years back. We bought a nice bottle of wine, we got just a *wee* bit tipsy, and we finally made a will. Our beneficiaries changed last year, so we updated our wills and executed them again. What we’ve been dragging our feet on is putting together our Legacy Folder, which is my fancy way of saying a DIY estate planning binder.
Now, let me be clear: we sadly aren’t rich beeotches with billions to pass down. As much as I would love to have some kind of The Inheritance Games grand riddle to solve while forcing people to live in my ginormous Winchester Mystery House mansion, we don’t live a life of charity galas. Our beneficiaries are going to get a 1,000 square foot house and two cars that have over 120,000 miles each. Which is honestly why I’ve been putting off the task. (Plus I’m lazy.)
Still, everyone need a will.
Don’t got kids? Don’t care, get a will!
Single? Doesn’t matter, get a will!
Hate your entire family and hope they have a flaming fire to clean up after you die? Then fine, you do you, boo. But otherwise, get a will!
Once you’ve picked out your beneficiaries, executor, and powers of attorney, having a road map to guide them through what is going to be an emotionally season stage of life is the greatest kindness you can leave. An estate planning binder is the first step is leaving a good legacy for your family.
Setting Up Your Estate Planning Binder
No private jets here, so I’m not about to drop a bunch of money on some fancy leather-bound binder kit that costs $50+. I went to Wal-Mart and picked up a 1/2″ three-ring binder that will work just fine, along with a set of tab dividers, which I labeled:
- POAs
- Guardianship
- Contacts
- Accounts
- Important Documents
- Last Will & Testament
- Living Will
- Trust
- Disposition of Remains Instructions
My DIY binder cost about $3.50.
Powers of Attorney (POAs)
We have two different powers of attorney: a medical one and a financial one. They can be the same person, but you’ll still want documents for each. Keep the files here, as well as on record with your doctor and your financial advisor.
Guardianship
This one we don’t have as we don’t have kids yet. But if you have a fur baby, it isn’t a bad idea to mention them in your last will & testament below. We have stated in our wills who the Budget Beagle will go to if something were to happen to both of us.
Contacts
Here, we listed the contact information for not just our powers of attorney but for everyone mentioned in our wills and any other important family members we would want contacted if God forbid something happened to us. Anyone our POA might need to reach and might not have contact information for is listed in this section with their name, relation to us, phone number, and mailing address.
While we don’t have the Winchester Mansion or GVI plane, we have a few family heirlooms passed down from previous generations who wished for the tradition to continue, as well as certain items that are sentimental to us that we wanted to go to certain people. These items are mentioned in our last will and testament, and the family and friends named are included in this contact section.
I broke this section into three different parts:
- Emergency Contacts: our POAs and other family/family friends to contact in case of emergency, along with contact information for our current employers since we have current accounts like insurance and HSA tied into our employers
- Distribution of Specific Bequests: contact information for everyone we left specific things to
- Beneficiaries: if your beneficiaries are young kids, you likely won’t need this section as it will be handled under the guardianship section
I’m the first to admit I over plan just about everything. But the more idiot proof we make the binder, the easier it will be for our executor to execute (cue the Daleks).
Accounts
This is one of the most important parts of our Legacy Folder, and the part I was dreading the most from the amount of prep work it takes. This section is key to making our executor’s life easier once we’re gone. This information isn’t listed anywhere in our will documents.
Here, we list where all our financial assets are held, whose name is on the account, along with any account numbers, contacts, or logins for all financial accounts, including:
- Checking account
- Savings account
- 401(k)
- IRA
- Brokerage account
- HSA
- Safe deposit box
We also listed all the institutions, along with account numbers and logins, for all our debts and bills, including:
- Insurances: homeowners, car, flood, etc.
- Mortgage
- Credit card(s)
- Student loan(s)
- Power, gas, water, internet, phones
- Autopay subscriptions (including security alarm instructions, etc.)
- Health insurance, if not through employer
Other important information to consider including:
- Phone PINs
- (Apple/Google passwords) – Email
- Spare house key
- House alarm code
We also included our social media accounts. While we don’t give two rips if we still have Facebook accounts once we’ve kicked the bucket, I do plan to be a successful budgeting guru and published author at the time of my death. Whoever eventually inherits my businesses, brands, and copyrights will need that information to manage my assets and brands.
Pro Tip: call me paranoid, but this is a lot of very sensitive information to have stored all in one place. Knowing that, I don’t have this file stored in cloud storage. I don’t even have it stored on a harddrive anywhere. I printed it for the binder and deleted the digital version. The perk of separating out each section above into different sections is if you open a new account or change a login, you only have to replace a few accounts instead of retyping the information for allllll the different accounts.
Important Documents
Are you still with me? Good, I’m proud. Most of the leg work is behind you, I promise.
Here, we want to include all the important documents your executor might need when settling your estate. If these documents are stored somewhere more secure, consider including detailed instructions on how to retrieve them. If they are in a safe deposit box, make sure your executor has the authority to access the safe deposit box. These documents can include:
- Car titles
- Home deeds
- Social security cards
- Birth certificates
- Marriage certificates
- Any other government-issued document of importance
Last Will and Testament
Your last will and testament is a legal way of directing who gets what after you croak. If you don’t have a last will and testament, the government gets to hold up all your assets while they decide who gets what. Most Americans grumble about the way the government uses the money we pay in taxes. Do you really want the government deciding what to do with the money you worked so long and hard for? No, you don’t. That’s why you need a will.
Not only do you need a will, but you need to make sure it’s updated. Let’s imagine, God forbid, you go through a messy divorce with a crazy ex that leaves you scarred emotionally for years. You swear off love forever. Until you meet The One. Hearts in eyes, doves singing hymns, the whole shabang. You get remarried. And then you’re in a car accident or get struck by a meteorite. Your soulmate is distraught, only to discover you never updated a will you made decades ago. Guess what happens? Your crazy ex gets the other half of your stuff you didn’t have to fork over in the divorce. While your current spouse will be able to keep certain joint-owned assets, I think we can all agree – what a mess. Update your will whenever you have a big life change. They can be state-specific, so make sure you get it redrafted or check it if you move to a new state or country.
Pro Tip: Don’t forget your beneficiaries on your retirement accounts and insurance policies too, as they will override whatever your will says. Don’t give your crazy ex half of your 401(k) you spent decades rebuilding.
Living Will
While the last will and testament covers what happens to your crap after you croak, your living will covers you before the final bucket has been kicked. This document outlines your medical wishes in situations where you aren’t able to express your wishes. It’s important that you not only draft this document, but discuss it with your medical power of attorney as soon as you do, before you name them your power of attorney. If they aren’t comfortable fulfilling the wishes of your living will, you need to find yourself a different POA.
I know it can be a difficult conversation. Hence why I got a wee bit tipsy when we sat down to go through our estate planning. Rip the Band-Aid off, my friends, so you can live peacefully for the rest of your days.
Trust
If you have a significant net worth, you might have a much more complicated estate plan than average Jane and John Jones. In this case, you may decide to set up a trust (there are several different types, but that’s a different discussion for another day). Trusts can be beneficial in helping legally navigate how you want the assets in your last will and testament distributed. If you’ve fortunate enough to be a millionaire but unfortunate enough to leave minor children behind at the time of your death, a trust can help disperse the assets so you kids doesn’t blow through their inheritance by their nineteenth birthday.
Disposition of Remains Instructions
Do you want to be buried? Cremated? Donated to science? Do you want to be interred next to your spouse? Scattered across the Grand Canyon? Help your executor out and leave them clear instructions.
Storing Your Estate Planning Binder
One you get your Legacy Folder set up, you want to store it in your own personal Fort Knox. Make sure your executor is very clear on where it is and how to get to it if they need to. I feel like this goes without saying, but make sure the person you select as your executor is someone you trust with access to all this information and documentation while you’re alive. Send them copies of the important documents (POAs, wills, etc.) but store the originals somewhere safe.
Spreading Your Legacy
Once your Legacy Folder is set up and stored, it’s important to discuss it with the people it involves before you die. We’re trying to make this season of grief as easy as possible for the people left behind. The last thing you want to do is throw a big bombshell on your family about who gets what, leaving your poor grieving family members and/or friends in the crosshairs of the mess as they try to settle everything in your estate/life once you’re gone. I cannot stress this enough. While an inheritance is a nice legacy to leave, clarity is the greatest kindness you can leave as part of your legacy. Few people want money wrapped up in landmines of drama and family dysfunction.