Funeral Planning: Create A Love Drawer

Life Insurance is now being viewed as "love insurance" by some financial professions. As cliché as it may sound, it certainly has a tremendous amount of merit.  What better gift is there to give your family and loved ones upon your death than a large sum of money to be used for such things as income replacement, college tuition, retirement, taxes or estate taxes, charitable gifts, and much more?  The last thing you would want to add to your family at the time of their emotional loss and grieving is financial pressure.

Well, here is an even better idea.  Why not instead of leaving a “love insurance” policy (which I firmly believe should be an integral part of most financial plans), leave behind an even better gift…a “love drawer”. 

What is a “love drawer”?  Simply put, this is a drawer that whoever you choose can turn to when you pass and find complete and simple details, as well as your instructions, for all of the aspects of your last wishes, financial affairs, instructions, personal messages, as well as your end of life plan and preferences   

So what are some things to consider keeping in this “love drawer”? The following are a list of most, but certainly not all, of your money matters that will need to be addressed:

ü Estate Planning: First and foremost should be two things:

1. The name, firm name, address, and phone number of your Estate Planning Attorney

Your actual Will or Trust. NOTE: If this is a copy, be sure to note the exact location of your original signed Will or Trust

Whether you have an Estate Planning Attorney or not, creating a Will or Trust is the first and most important step in the planning of your estate, as it becomes the foundation for all of your financial affairs. One of the reasons this is a critical first document to have in your “love drawer” is because it spells out the details of your last wishes, also referred to as your last Will and Testament. Also, the Will or Trust states whom you have chosen to be your Executor or Trustee to govern your assets according to your wishes, as well as the person (or persons) you’ve appointed to be the Guardian of any children who may need assistance.

ü Insurance: The name, firm name, address, and phone numbers of all of your insurance agents including car, home, life, disability, annuities, and medical insurance. (Note: If you do not have a personal agent/representative for any of these policies or contracts, be sure to list the policy or contract numbers, copies of these policies or contracts, as well as the phone number for the home office of each company’s policy or contract)

ü IRA’s and Life Insurance: Be sure to not only list the company or your representative’s name, account and policy numbers, and phone numbers…but also be sure you have currently listed contingent beneficiaries on each IRA and life insurance policy

ü Investments: The name, firm name, address, and phone number of all of your financial advisors, including stockbrokers and financial planners (Note: If you do not have a personal agent/advisor for any of these accounts, be sure to list all of your account numbers, the investment companies or banks who hold these assets, copies of your most recent statements, as well as the phone number for the home office of each company)

ü Employer: The name, address, and phone number for the Human Resources Department of your current employer

ü Social Security: The name, address, and phone number of the Social Security Administration, as well as a copy of the most recent statement you have available

ü Debts: The complete details of all debts and their corresponding contact information; including mortgages, home equity loans, car loans, student loans, credit cards, or personal loans

ü Important Documents: Copies of all important documents such as drivers license, passport, social security card, and birth certificate

ü Deeds or Titles: Copies of important deeds and titles for assets such as houses, cars, boats, etc.

ü Burial Wishes: I think it is a good idea to note if you have any preferences regarding your burial, such as being cremated or buried, your preferred location, as well as any preplanning details and records.

ü Love Notes: Although this is not necessary, some people (including myself) like to leave a personal “love note” to important people in your life, such as a spouse, parent, or child. There is no financial reason for this “love note”, but some people find it helpful to leave behind their loving thoughts, words, ideas, and appreciation