How to prepare for the future – part 4

4 Aug

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How to prepare for the future part 4

 

When I gave my talk at the #BigConversation, I discussed creating a Will, Powers of Attorney, having a discussion and then getting your paperwork in order.

 

Filing is usually no-one’s favourite job, but it is necessary.  It doesn’t matter what system for keeping your records in order, just as long as it is clear.

 

In your conversations with your family members, if you want, you can tell them as much as you like.  You can tell them how much money you have and where it all is held along with other information such as who your pension providers are etc.  The choice is entirely yours. If you choose not to tell them, then they will need to know where to find the information and therefore perhaps that is all you tell them.

 

It is useful to keep your paperwork in some kind of logical manner, so that when the person dealing with it (Executor or Attorney) finds it, they will be able to understand the picture of your finances fairly easily.  You may want to also have a file of obsolete paperwork, so that they can know what is no longer current, just in case they knew about it before, but mark it old obsolete paperwork, so that they will realise that!

 

It is not a good idea to leave your telephone banking and/or internet passwords with your paperwork, which is just for you.  If your Attorney or Executor needs to access your account, they can do that in their own right.  Using your access masquerades them as you and that is not how they are acting, you have given them authority in their own right.  That way their actions are traceable and they can be asked to be accountable for their actions.  The other issue is the risk associated with leaving your passwords around, as anyone could come along and access your account if they found it, so your are at risk of theft.

 

If you choose to leave your paperwork in a mess, then it takes hours to find everything, go through it, work out what is current and deal with it.  It might also include lots of wasted letters or it could mean that whoever is looking after you has to instigate an asset search.  Speaking from personal experience, when I have dealt with messy affairs, it takes hours and a lot of space on a very big table, it is frustrating and if the person has appointed a professional, will cost lots of money that it didn’t need to.

 

It may be boring, but get your paperwork in order, it will make life lots easier for you and for anyone helping you!

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