Being Chartered Accountants we are often faced with solving the financial affairs of clients passing away suddenly.
If plans for economic management have not been put in place, this can cause solemn problems for those left behind.
Here's a simple checklist that can help. It's our responsibility to ensure we do these things before we die:
1. Record the name of your bank account numbers and passwords. Keep this information confidential. Put it with your lawyer or your accountant or better still, both professionals. Ensure that the document is only to be opened and read upon your death.
2. Record a written message to your spouse or family, your lawyer or your accountant. Stipulate the steps that should be taken on your passing. For instance, does someone owe you some money which hasn't been recorded in say your financial statements but which you want collected on your death?
Do you want to donate your organs?
Record your wishes so they are easy to follow and have no ambiguity? Again, stipulate that the document should only be opened and read upon your death.
3. Do you have a current Will? Make sure you do and that your lawyer, accountant and your spouse have a copy of that Will.
4. Do not revoke or stop a life cover policy without having an complementary policy set up. 5. Keep a copy of your life insurance policy with your lawyer, accountant or spouse.
6. Make sure the policy for life insurance is recorded in the names of the Trustees of your Family Trust.
7. Go ahead and have a Trust, but ensure that assets that are business are not mixed with assets that are business related.
For example, put personal assets such as your family home in your Family Trust and keep your business assets, such as the shares in your business in your Trading Trust.
8. Have a current Memorandum of Wishes for each of your Trusts. Tell your surviving Trustees in your Memorandum of Wishes precisely what you want done with the assets of the Trust when you die. 9. Leave a copy of your current Memorandum of Wishes with your lawyer, accountant and surviving family.
10. Do you have a game plan for your business if you are a business owner? What exactly should happen on your death? Who should be put in control until your Trustees or your Executors can resolve matters?
Record this in writing in detail. If you have a viable business this plan will certainly be critical to ensuring your operation survives after your death.
11. Remember to leave a set of house keys, business keys, and so on with a friend so that someone has access to your business and your home.
Remember, if you live alone, pets and pot plants still need attention and care.
There will undoubtedly be other factors that should be considered and there will be many more suggestions you can find.
The above is not intended to be a full list. If you follow these suggestions it may make things easier for those left behind so that they can on with grieving their loss.
------
Paul Easton works with
Janet Xuccoa - an
accountant and partner at Gilligan Rowe & Associates Ltd (GRA). GRA is an accounting firm specialising in property and
business accounting
