Category: Digital Assets

Phoenix Inventors Create Digital Storage for Estate Planning Documents

Investopedia’s recent article asks “Should You Store Estate-Planning Documents Digitally? The article reports that two Arizona entrepreneurs who’d had enough with the massive amounts of paperwork for their own estates created Document Trunk. It’s a digital estate planning document storage platform. For an annual fee, you can store up to 10GB of estate documents. 8-23-2016

After your information is in the database, a search is conducted daily to ensure that you are still living. If the system detects your name in an obituary or death notice, it will be confirmed. The estate’s primary contacts entered during registration will then be automatically notified. The system lets you enter up to 14 primary recipients to be notified if you pass away.

You also have the ability to limit who can access the documents. Digital storage, the company says, ensures that your documents are kept secure through encryption.

However, one of the biggest obstacles to the use of this system is legal. Digital copies of your estate planning documents may not be legal in the county and state where your estate is located.

In addition, you need to be sure to update the contact information for your primary beneficiaries.

Whether storing your estate planning documents on a digital platform is the best solution for your needs is a topic you should discuss with your estate planning attorney. He or she may have other digital options for storing your legal papers. A number of financial institutions offer similar platforms, often with the ability to centralize all of your financial accounts—from credit cards to insurance policies and bank and investment accounts.

Even if you do use a digital system, there are always drawbacks with any computer or electronic storage. Be safe and make certain that your attorney has properly executed hard copies of your will and other estate planning documents—if he or she has undertaken the responsibility (and liability) to do so. You should also let your executor, family, or other loved ones know the location of these documents in the event that they may need them.

Reference: Investopedia (June 9, 2016) “Should You Store Estate-Planning Documents Digitally?

Ready…Set…Start your Estate Planning!

Estate plans have several components to help beneficiaries carry out the requests of the benefactor. You want to start tackling those components while you’re still healthy and of sound mind. In fact, a recent gobankingrates.com article, “Your Estate Planning Checklist: How to Create a Financially Sound Estate Plan,” sets out an estate planning checklist to help you start a solid estate plan. 8-16-2016

  1. Sign a Power of Attorney. This lets you name a person you trust to make financial and legal decisions for you if you can’t for yourself. Without this, your loved ones will need to go to court to have someone appointed to manage your finances.
  2. Appoint a Durable Power of Attorney for Health Care. This document allows you to designate an individual to make medical decisions and to carry out your end-of-life care plan if you’re unable to do so yourself. Talk to an elder law attorney to help you with issues like funding nursing home care, what to do if you’ve outlived your retirement funds, and other needs of senior citizens.
  3. Draft a Living Will. This details the medical care you would want if you become unable to make your own health care decisions.
  4. Create Your Will. This is the first step to making certain that your wishes are executed. You’ll be able to name the people you want to receive your assets, as well as designate a guardian for any minor children.
  5. Draft a Living Trust. A trust allows you to transfer property to your heirs without going through probate. If you only have a will, any property that’s only in your name at your death will go through probate court to be distributed. A trust lets you specify when and how your heirs will receive assets, which is particularly helpful with minor children.
  6. Write Funeral or Memorial Instructions. This isn’t included in your will because wills often aren’t opened and read until weeks after your death! Use a separate document to describe the type of memorial service you’d like and whether you want to be buried or cremated. Also, make certain your friends and family know about your wishes—give them copies of this document or tell them where to find it.
  7. Make a List of Accounts and Documents. This should include all of your financial accounts, insurance policies, and contact information for any professionals you work with—like attorneys, accountants, brokers, and financial planners. Make copies of your estate planning documents, the mortgage or deed to your house, and titles to cars and other property. Keep the list and documents in a safe location, like a home safe or safety deposit box. Make sure to let family members know where it’s located in the event something unexpected happens.
  8. Create a Care Plan for Your Pet. Selecting a beneficiary for your pet is an important decision. You’ll want to be sure you have a good fit, as well as a back-up person. To have control over the care of your pet and how the money you earmark for that care will be spent, ask an estate planning attorney to create a detailed trust. This will let you to state your wishes in detail—from the food your pet likes to veterinarian information and health care philosophies.
  9. Organize Your Social Media Accounts and Digital Assets. This means your digital music library and social media profiles for Facebook, Twitter, and LinkedIn. The answer for what to do with your social media accounts and digital assets isn’t black and white. Because of various laws, it might not be legal to log on with your loved one’s password to view his or her email or access his or her banking records. Terms of use and laws in this area change frequently, so be aware of updates that could affect your account and your estate plan.
  10. Review the Plan Yearly. An estate plan isn’t something you do once and never look at again. As your personal circumstances and state and federal laws concerning estate taxes change, you need to review your plan annually to ensure it will still work.

Be sure to work with a qualified estate planning attorney to make sure that the estate plan will foster your goals.

Reference: gobankingrates.com (June 22, 2016) “Your Estate Planning Checklist: How to Create a Financially Sound Estate Plan”