The aftermath of a loved one’s death is a time of grief and mourning. It can also be confusing and overwhelming for family members who must get the person’s affairs in order. An In Case of Death folder can ease the family’s emotional burdens.
No one likes to think about their own passing, but planning ahead can provide relief for loved ones, even if a death is unexpected.
One of the best ways to ensure your affairs are in order is by creating an In Case of Death folder. This collection of essential documents and financial information makes it easier for family to manage your estate and carry out your wishes.
I learned early on from a friend who sold life insurance that I needed to have an In Case of Death folder. She walked me matter-of-factly through the process and explained its importance. When a loved one passes away, family members are often left scrambling to find important documents, access accounts, and understand final wishes. Without a clear roadmap, this process can be overwhelming. An In Case of Death folder eliminates unnecessary stress by keeping all crucial information in one place. It helps ensure bills are paid, assets are distributed properly, and legal matters are handled smoothly.
If something unexpected happens, do you know who will make decisions about your assets and funeral? More importantly, would they know exactly what you want?
What to include in an In Case of Death folder
Thinking about death is never easy, but being prepared can bring peace of mind to you and your loved ones. Those looking for guidance in organizing their end-of-life plans can find many resources online, including books with file pockets. One of these comes from author and organizing expert Nikki Boyd. Boyd’s estate-planning tool, “The Beautifully Organized Estate Planner,” is designed to simplify the process. The planner offers step-by-step instructions, checklists, a digital asset planner, and dedicated storage pockets for essential documents.
Your In Case of Death folder should contain everything your family needs to settle your affairs. Here are some key documents and pieces of information to include:
- Phone and computer passwords: These might sound obvious, and they are crucial for anyone hoping to retrieve financial or legal documents, find relevant phone numbers, or even access photos or other memories.
- Personal identification and legal documents: Copies of your birth certificate, Social Security card, driver’s license, and any marriage or divorce records.
- Will and estate planning documents: Your will, trust documents, and a list of beneficiaries.
- Financial account information: Bank account details, investment accounts, and retirement plans, including account numbers and contact information for financial institutions.
- Life insurance policies: Copies of any life insurance policies and beneficiary information.
- Real estate documents: Property deeds, mortgage statements, and home insurance policies.
- Outstanding debts and bills: A list of credit cards, loans, and regular payments like utilities, subscriptions, and memberships.
- Medical information and end-of-life wishes: A healthcare directive, power of attorney, and a list of medical conditions and medications.
- Online accounts and passwords: A secure list of login credentials for email, social media, financial institutions, and any other important online accounts.
- Contacts for key professionals: The names and contact details of your attorney, financial advisor, insurance agent, and accountant.
- The location of any physical assets: Include the location of any valuable assets such as gold, precious metals, collections, and instructions for how to access them (safety deposit box instructions, passcodes to a safe, etc.)
With so much of our financial and personal lives managed online, ensuring loved ones can access important accounts is crucial. Consider using a password manager (I use LastPass) that allows you to securely share login details with a trusted family member. Alternatively, keep a physical record of usernames and passwords in a locked, fireproof safe and let a trusted person know how to access it. Remember that passwords change, so update the records as needed.
Related: Recording Your Assets Safeguards the Future
What now?
Once your folder is complete, store it in a safe but accessible place. A fireproof safe at home is a good option, or you can leave a copy with your attorney. Be sure to inform a trusted family member or executor where the folder is kept and how to access it when needed. If you trust your family member explicitly, you may give them the folder and talk through any questions that come up.
There are many planning guides available to help you organize your affairs. Whether you purchase a pre-made planner or create your own, the important thing is to have a clear, comprehensive system in place. The National Institute on Aging offers a detailed checklist that covers essential documents and preparations, Getting Your Affairs in Order.
Creating an In Case of Death folder may feel overwhelming, but taking the time to organize your important documents now can save your loved ones from significant stress in the future. Tackle it bit by bit, if the task seems too overwhelming. By making financial and legal information accessible, you ensure that your final wishes are carried out smoothly and that your family can focus on what matters most – honoring your memory and supporting one another.
