When I listed my 2016 financial resolutions I noted that one of my resolutions as follows:
Complete death file — I know, it’s a morbid name. But it’s basically a file that lists where all our finances, records, etc. are located. It’s for my wife in case something would happen to me.
One reader responded:
A better term of death file that I like would be disaster file. If you were to become disabled due to an illness like a coma she would have access to all the whereabouts of the family financial life. Death file is so final.
He also suggested:
It might be worth dedicating an article to what can potentially be included in a disaster file. I am sure we all have different ideas and things included and maybe have forgotten one.
That’s exactly what I plan to do in this post — dedicate it to listing what should be in a disaster file.
Resources
Before I get into my plans, let me list a few resources that could be used to create a disaster file. Here are some well-rated options from Amazon:
- 12 Critical Things Your Family Needs to Know
- ABA/AARP Checklist for Family Survivors: A Guide to Practical and Legal Matters When Someone You Love Dies
- Get It Together: Organize Your Records So Your Family Won’t Have To
- ABA/AARP Checklist for My Family: A Guide to My History, Financial Plans and Final Wishes
I do have the first one on the list, but have not used it, and I can’t vouch for any of these. But I do realize some readers may want a bit more help as they put things together, so that’s why I’ve listed them.
As you might have guessed, I prefer to create the disaster file on my own. 馃檪
What to Include
My disaster file doesn’t begin with the file itself, but with a letter:
- Instruction letter — I want to start the process with a letter that details “here’s how you find everything.” Of course my wife will need to know where this letter is located, so I’ll probably give it to her now or agree on a predetermined spot.
- Password to computer — In the letter, my wife will be directed to go to my computer and start it. I will include my password.
- Go to Quicken — Also in the letter she will be instructed to open Quicken (including my password). From the opening screen she will see all of our financial accounts. This will let her know what we have, where it is, how much it’s worth, etc. so nothing valuable gets missed or forgotten.
- Direction to folder — She’ll then be directed to look in the disaster folder in my desk.
Here’s my current list of what to include in the disaster file:
- Key documents — The disaster file will include the most recent statements for every account listed in Quicken.
- Detail document — Also included will be a detail document listing various other papers in the file as well as other key pieces of information, property, etc. in other locations.
Here’s what the detail document will include:
- A list of key documents not in Quicken (and where they are) including information on insurance policies, home ownership documents, files on our rental properties, tax records, our wills, and credit cards.
- Where to find a list of all my online accounts and passwords. Many of these will grant access to online financial and other accounts.
- Where to find cash I keep at home, our checkbooks, and so forth, including any gold or silver https://esimoney.com/do-i-need-to-add-physical-gold-and-silver-to-my-portfolio/ I may buy.
- Where to find the keys to our home safe (and a rough list of what’s in it).
- Key contact information for our tax advisor, lawyer, rental property manager, and so on.
- A general list of instructions of how to handle things if I’m not able to.
My wife knows much of this, but I’m thinking I may need to spell it out as if someone knew nothing.
Why? Because what if something happens to both of us? Our kids would need to figure this all out and they know virtually none of it.
Those are my initial thoughts and plans. I’m sure I missed a ton, so let me know your suggestions in the comments below.
You bring up a valid point in that what would happen if both of you are not around. I am fortunate in that both my sons are now over 21 and I have included them in the location of the disaster file and I have just given them a summary of what is in there. I know full well that if something did happen to me, my wife probably would need some help in accessing accounts as she is not too tech savvy.
It is also important to check once a year in that I have had to change passwords on some accounts and that would be a pain if it was not correct. I also include a print out of the log in web page along with URL and had written notes on where to input information.
My next big thing is updating the will as my youngest just turned 21.
If you have a power of attorney document and/or a health care directive, copies of that should put in your file and the person that is designated as the admin (family member, relative etc.) of those documents should know where the papers are in case they have to get them and act on them.
I also wrote down what bills are paid online and which are paid by check. Denote which subscriptions (newspaper, magazine etc.), EZPass etc. are automatically paid from your credit card or bank account.
Additionally, indicate phone numbers of the HR department where you work so they can contact your company for disability or life insurance payouts or 401k distributions. Denote how much those policies/accounts are for so they are knowledgeable about the anticipated disbursements.
I also include an external hard drive which has current backups of my computer and Quicken files.
Excellent subject. Myself, I have a one-sheet 8.5″x11″ for both myself an wonderful wife. Lists the locations and institutions where assets are held, and contact information.
One thing also on this sheet is what is NOT to be found. If something were to unexpectedly happen to both wonderful wife and self, I do not want people (in this case, my brothers) to waste time looking for things that are not their. Things of value (financial, like high-end spinning wheels belong to wife) or sentimental (father’s baseball glove and grandmother’s sewing thimble) are noted, and I have disposed of collectibles or other artifacts and don’t want anybody expecting to find them or wondering if they were “removed”.
I keep this one-sheet in a fire-safe, along with property deeds, auto pink slips, Health Directives, etc. My brothers and parents each have a copy (sealed in an envelope, they only open it if they want to or have to).