My mother’s passing last year left me heartbroken.
Although she did her best to make the inheritance process easy for me, there were definitely some areas that could have been less stressful.
In my previous article, I shared some expert tips on avoiding probate to make your heirs’ inheritance process much easier. Here are six more ways to help your heirs have a painless inheritance experience.
1. Keep a list of passwords for everything tech
We keep a lot of important information in our cellphones, computers, online accounts, tablets and other technology. When you die, your heirs will need access to that information, which means they will need your passwords and pin numbers — not just for your hardware but things like pensions, bank accounts and investment statements. Don’t forget social media usernames and passwords.
These should be kept somewhere safe, but where your spouse or other trusted individual can find them, says Tracy A. Craig, Partner and Chair of Trusts and Estates Practice Group at Seder & Chandler, LLP, in Worcester, Massachusetts. “Without these, it may be impossible to gain access to said devices and accounts. Certain tech companies require the executor of the estate to go to court to obtain a specific order to access passwords, which can cost thousands of dollars. I’ve had clients who needed to go to court to obtain an Apple password and it cost $5,000 in fees to do this.”
One idea: some technology companies, including Facebook
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and Google
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allow you to name an individual to access an account after you die or haven’t used the account for a certain period of time. You can also explore this option with other companies where you hold accounts.
2. Make a list of all assets and accounts, with contacts
At first, this might seem like a monumental task, but it’s crucial for your estate planning. My mother typed these out in a document, and I use a spreadsheet. Make sure to include:
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Investment accounts, including checking and savings accounts, CDs, 401(k)s and other retirement accounts, brokerage accounts, and mutual funds.
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Places where you pay bills, including credit cards, electric, water, and health insurance.
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Other assets, including your car, life insurance and the property you own.
Related: Don’t leave a clueless trustee behind in your estate plan
3. Put everything in one place
“At least a few times a month our office will receive a call from a grieving heir who doesn’t have any idea where the recently deceased’s estate planning documents are, who services their financial accounts, or how to access these accounts,” says Scott Glatstian, an estate planning attorney at Rosenblum Law in Clifton, New Jersey.
“These are people who didn’t even create a plan with us,” he adds,