Estate planning is often a neglected part of personal finances. Let’s face it: people do not look forward to leaving their loved ones behind. They often postpone the task as the issues of everyday life take priority. However, a well-structured estate plan ensures that your family is prepared for your passing.  It will most certainly alleviate emotional, financial, and legal burdens during an emotional time. Organizing your estate planning documents, passwords, account information, and funeral arrangements is key.  Here are a just few reasons why it is so crucial to get started right away:

1. Simplify Tasks for Family

Surviving family members are often left to sort through piles of paperwork of a deceased loved one. Without clear directions, surviving loved ones may be overwhelmed by locating important documents such as last wills and testaments, funeral instructions, bank accounts, brokerage statements, and insurance policies. Separating the most important documents in one place will prevent confusion and unnecessary delays in settling your affairs. It may also prevent unnecessary costs.

2. Your Wishes Will Be Clear

Organizing your estate documents ensures that your wishes will be honored after you are gone. By clearly outlining your instructions for assets, funeral arrangements, and other important matters, you provide a roadmap for your family. This is especially important if there are specific directions regarding division of assets or possible conflict among family members. The clearer your intentions, the less room there is for misinterpretation. You should review your estate planning documents periodically to address any changes in your life such as the death of intended beneficiaries.

3. Simplify the Legal Process

The legal process of settling an estate can be long, expensive, and complicated, especially if your affairs are disorganized.  As a general rule, most people do not want their assets to be part of a probate court administration. A well-structured estate plan will pass assets to beneficiaries without the difficulties and cost of probate court. The surviving family members will have access to funds more quickly and can proceed with selling or distributing assets without delay.

4. Family Can Locate and Access Account Information 

Our financial lives are filled with numerous accounts, passwords, and online log-in credentials. Most people no longer receive monthly paper statements in the mail that would otherwise provide details about banking and retirement accounts. Your family may not even know where you hold your accounts, let alone whether you have named transfer on death beneficiaries. It is important to keep a secure list of usernames, passwords, and account information in a safe, accessible location. Consider using a password manager to securely store passwords. Without ready access to this information, surviving family members may find it difficult to locate and properly manage your assets.

5. Simplify Funeral Arrangements

One of the most difficult tasks for surviving family members is making funeral arrangements under emotional stress. There is a wide range of funeral options, many of which are quite expensive. Establishing a pre-arranged funeral plan can relieve your loved ones from making these decisions during a time of grief.

6. Identify Outstanding Debts

Ohio law provides that most creditors must submit formal claims in a probate estate within six months of the date of death. Organizing your debt obligations, including current credit card statements, mortgage documents, and promissory notes, will help your family identify your current obligations and prioritize payments. They can determine which claims are valid and which claims are barred by the six-month claim deadline.

Organizing estate planning documents and related accounts will create a comprehensive overview of your current finances.  Your family will learn more about your financial status. Moreover, they will understand how you expect them to manage your affairs upon your death.  Laribee Law, LLP help you develop and organize the right estate plan that is right for you.



Michael Laribee is a partner in the Medina law firm of Laribee Law, LLP. This article is intended to provide general information about the law. It is not intended to give legal advice. Readers are urged to seek advice from an attorney regarding their specific issues and rights.