Technically this
post belongs on two lists because while it is an organization item, it is also
about helping your family through one of the toughest times in their life. Your organization of this drawer, whether it
is in the solid form or an electronic one will save them much time and sorrow
in their time of loss. It can also save them a lot of money. It is a companion piece for the post by my
guest blogger Sharon Hudson, Georgia Mortician, on end of life planning.
By planning
out this future event the tendency to overlook, or overspend due to grief is
taken away. It is one of the greatest
gifts you will ever give your family.
My first
encounter with a Legacy Drawer was just as my father was going in for the open
heart surgery to possibly save his life.
Unfortunately it did not, but the little bit of information he gave me that
last night saved my brother and myself so many difficulties and financial
mistakes it was a true blessing. That
was 1988 and we’d lost our mother just eight months earlier, so much was still
in upheaval.
Dad’s form
of a Legacy Drawer was a small book in which he had scribbled the name of his
life insurance companies, his broker, bank account numbers, where his safety
deposit box was and little else.
As executor
of his estate I found there was so much left out I was determined that my
family would never be caught in such a confused state should I pass
suddenly. Yet many years passed and I
did nothing more than my father did. A
few scattered notes here and there.
Now as I am
trying to follow the Total Money Makeover path to financial freedom the subject
has came up again.
Dave
recommends you have eleven items located
together all in one place where your family knows it is and can find it easily http://www.daveramsey.com/article/legacy-drawer-keep-your-family-prepared/lifeandmoney_relationshipsandmoney/ in your legacy drawer:
1. A cover letter
2. A will and estate plan
3. Your financial accounts
4. Funeral instructions
5. Insurance policies
6. Important documents
7. Legacy letters
8. Monthly budget
9. Tax returns
10.
Safety
Deposit box information
11.
And your passwords
He goes into
more detail on these on his website
How you
customize your particular Legacy Drawer is up to you. While you may not own a lot, or feel the need
to give out a lot of details another person might. Where you keep your Legacy Drawer is also a
personal issue. I personally have both a hard copy of the Legacy Drawer and an
electronic one. The two are kept in
separate locations for safety’s sake. What is important is that you do one and you
do it sooner rather than later, because there are no guarantees in this
life. Other than eventually we will all
die and that the government will tax us.
As I worked
on setting up our Legacy Drawer I found I expounded a lot on certain aspects,
while doing short shift to others. At
least this was so in the beginning, but as time passed and I saw more and more
families and how they struggled because they didn’t have certain documents or
know a password I found each of the eleven items needed detailed
information. More importantly I realized
that both my husband and son needed to have not only knowledge of this Legacy
Drawer, but they needed to add information to it as well.
Just because
we are a family living under one roof doesn’t mean we all feel exactly the same
way about certain issues. Nor do we
always share the same passwords.
My husband I
file taxes jointly, but I had no idea how he did them. So I needed a lesson in how to read them and
how certain entries came about.
While I may
hold a safety deposit key for another family member or friend, neither my
husband or son hold keys on that same account, in fact when asked neither knew
I had the keys. They would need to know
to let that family member or friend know I had passed and return the key to
them.
Speaking of safety deposit boxes, and accounts please put a "Upon Death" authorization on all such items. My father didn't, the bank had told him he couldn't since Mom had just died. As a result we had to get a court order to get into the safety deposit box to get the insurance policy to pay for his funeral, which as Sharon will tell you is not a good thing. Especially when the bank fought us even after we got the court order.
To avoid such a hassle if you keep your original insurance policies in the saftety deposit box, keep a copy of it where it can be accessed 24 hours a day by anyone that may be doing your funeral arrangements.
My son is an
adult that has his own tax returns, his own income, his own social security
number and his own desires as to how he wants to leave this world. So his information needs to be there as well.
A will is
far more than an estate will. A living
will should be created with your own medical directives. While I do not want to be kept alive
artificially, I know one person who is terrified that there might always be
hope and therefore wants to be on machines until they die despite the machines.
If you do
not have these issues down in writing your family could end up with large legal
and medical expenses. All it takes is a
few minutes, a public notary, and a simple form you can sometimes get from your
library or online for free. Be aware
these are state specific. Those few
minutes could save your loved ones a lifetime of anguish as to whether or not
they did the right thing.
If you do
not have that medical directive where your loved ones can find it, then you
have done them a disservice. If they can't find it, you could be put on machines when you don't want to be and then they will have to go to court to take you off. If even one family member fights it can be very traumatic for all involved.
While I
cannot donate organs due to my past medical history, I know one person who wants to give their entire
body to science. All these wishes and
known issues need to be in the Legacy Drawer.
So each of
the eleven items needs to be address fully and directly by each family
member.
My
grandmother even had down exactly what she wanted buried in, the bible versus she wanted and the hymns, so did my
mother. Because it was written down, we
could fulfill their wishes. Could your
family fulfill yours? Do they know your
social security number? Your medical
history? What songs you want at your funeral?
Do you even want a funeral? Would you prefer to be cremated? Are you terrified of being cremated? Put it all down for your family.
What goes into a Legacy Drawer, everything you feel would make your passing easier on the ones you love. Everything you would want to have or know about a loved one. It is one of the greatest gifts you can give your family.
So while
this not my usual cheery post for my blogs I feel it is an important one. This combined with the expert post by Sharon
Hudson on end of life planning are two blog
posts I really felt the need to share with the recent death of my Aunt Faye,
who would delight knowing that her death maybe saved financial and emotional
problems for others in this world.
God bless
you Aunt Faye. You will be greatly
missed.
Jan who will
move on to less deep thoughts now in OK
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