This is the fourth in an ongoing series of columns about building a Roadmap for your executor/heirs to follow in the event you are incapacitated or not here to guide them. The Roadmap should contain a litany of necessary information and need not be shared with anyone until needed. The only ABSOLUTE is to be sure your executor knows it exists and where to find it.
There are several sources you can turn to for more information regarding this type of planning. The Blue Cross and Blue Shield of Illinoisâ website offers some compelling reasons to organize yourself for the unexpected. The web address is bcbsil.com/lifetimes, and they fully endorse the idea of documenting your user IDâs, passwords, and pin numbers for executors/heirs, (as we suggested in Step 2) stressing that you will not be able to get that information from the banks, investment, or credit card companies. Quoting a bank spokesperson, âonly account holders may provide data to get in.â Obviously if the account holder has not provided that information in advance, it leads to a dead end.
In addition, the State Farm Insurance Company puts out a sixteen page booklet, free of charge, which covers many of the issues related to the subject matter we are discussing. If you donât know a State Farm agent, send me an e mail at the address below, and I will forward the name and phone number of someone in the area.
(Steps 1-3 from previous columns are archived at mysundaynews.com, or if you would like copies in Microsoft Word, email me at the address below.)
STEP 4: At some point your executor/heirs will need to have a picture of your overall finances. A summary sheet(s) can be used and should be updated periodically or in the event of any significant changes. This information will provide a âsnapshotâ of your present financial status and could be of significant help to those managing your affairs, if you are incapacitated or no longer here. The summary should include:
1. A list of all bank accounts and their balance.
2. A list of all retirement and or investment accounts, and their approximate value.
3. A list of all other assets and their estimated value including your home, cars, etc.
4. A list of any liabilities, other than current bills, such as mortgages, car loans, etc. and the approximate balance due.
5. A summary of all sources and amounts of income either monthly or annually.
6. An itemized list of your ongoing average monthly expenses, excluding those that are discretionary in nature. The list should include insurance premiums, car or house payments, monthly dues, utilities, phones, Internet, and cable, among others.
Once again, this information can be invaluable, especially for a surviving spouse who is not involved in the day to day management of your financial affairs.
Once you have gathered and organized the information from the first four steps you are almost complete. Our final column, in the next issue, will discuss the need for organizing income tax information, and what you should add to your Roadmap regarding that important matter.
Questions or comments email tomsansom2002@gmail.com.
