When it comes to preparing documents for those you will leave behind one day, there is an abundance of documents and information that you must include. Sean Seshadri is a successful financial expert that recently gave insight on how he discovered being in finance was his calling and he offers in-depth detail, beyond what’s below, as well. Sean Seshadri did an interview about his expertise. Preparing documents for your heirs is only a touch of what he covers.
This article will discuss the six documents to prepare for your heirs.
Write Out A Will
The first document to think about preparing whether you are a parent or will leave behind a spouse is a Will. Normally, you hear a will being prepared toward the latter years, but many decide to take action in the 30s or 40s. This document can be changed whenever you need to such as beneficiaries, estate division, bank accounts, assets, etc. In a will, you will form a legal document that allows you to name an executor that you trust to carry out your wishes. This can be for your estate or your minor children.
Prepare a Power Of Attorney Form
The next document is a power of attorney form. You can’t leave anything for your heirs with this form, but it sets the stage for someone to be the executive and make decision acting on your behalf in the event that incapacitated due to an illness or accident. Unfortunately, once you are deceased, the POA will be terminated. When addressing a power of attorney, there is a financial and a health side. Both can be designated to one person or two different people.
Include Life Insurance Documents
The third documents are life insurance policies. These policies can be started in your 20s and you pay into them with lost cost. Many do not know that they have a policy on them or that their loved ones have one. Keep a record of your policies to prove that your loved ones are entitled to the money you paid into for when you pass.
Collect Real Estate Records
The fourth document is real estate records. Just like the life insurance policies, it is best to begin collecting these documents and putting them in a safe place. Real estate records include the deeds to the house(s), assets, home mortgage statements, especially if financing and tax information for the property. The main property will already be known to your heirs, but ensure that they are informed if you have multiple properties.
Gather Tax Returns
The fifth document is your tax returns. If you own a business or a brand, it is absolutely important to gather your returns. Collect the name of your tax preparer or CPA if you had them done professionally. The CPA or preparer will be able to advise your heir when it comes to filing the final tax return for your estate. If you prepared your own taxes, make sure to enclose your login information and the online company that was used to file.
Prepare Final Wishes
The sixth document to prepare and is usually the hardest are your final wishes. The final wishes are what you want to be carried out by your executives. This can include a DNR(Do Not Resuscitate) clause, funeral arraignment, cremation, you can also list who want to be there when you pass over. Include this information with your will and the other documents.
With the final wishes, try to include if you would like to donate your organs to science or who will care for your beloved pets. These items are listed separately from your will. As the will includes the items that you are leaving behind or dividing, if you so wish. The best way to organize these documents is to place them in a binder and then a safe for protection.