Estate Planning Tips
Reasons to set up Payable On Death (POD) for your checking and savings accounts
Tip you should "take to the bank" for estate planning: POD bank accounts can ensure your money goes to a beneficiary and not into costly and time consuming probate.
My uncle died recently. He left behind a 17 year old daughter and a complicated array accounts. (4) checking accounts, (3) savings accounts, a handful of loans, assets, credit cards, and a large federal tax bill.
If he had POD set up for his individual (non-joint) checking and savings accounts, the money would have been immediately available for transfer to his daughter. Instead, the money is all part of the estate and can't be transferred to her until after the probate is complete
Now, things have to be settled before his sole heir can have anything (in order of priority):
The estate lawyer
The funeral home
The government (federal tax bill!)
Unsecured debt
After all those are paid, only a few hundred dollars were left. Had he set up POD, over $26k would have been available.
Most banks don't make it easy or clear how to set up a beneficiary / POD for a checking or savings account. Many require forms and notaries, but it will be worth the trouble. Make a trip to your bank and ensure you have a beneficiary or POD / TOD (transfer on death) completed on every account to ensure your heir maximizes their inheritance.
Why to leave a list of your assets (in addition to your will) and your passwords
Do you have a fire safe where you keep your important documents? If not, you should.
If something were to happen to you, make it easy to settle your affairs and figure your "less than organized" life out. Keep all hard copy documents (REF: car titles, motorcycle title, house deed, insurance policies, will) in a fire safe in your office or a bedroom. Also keep a list of where all your other asset/debt accounts are, and some notes to help anyone get at your insurance and money (REF: many people won't realize that your employer likely has a life insurance policy worth 1x-3x your salary). I even have my laptop and phone passwords written down so they can figure everything else out.
I personally also have an agreement with my best friend to come to my house and throw anything out that my mom would be horrified by.
#beprepared