Life Inventory: Instructions

In most relationships one person manages the finances and makes all of the long-term financial plans (saving for retirement, catastrophes, etc.).  In many relationships one person earns much more or brings more benefits to the relationship.  My case presents an extreme of both of these.  I do the monthly and longer-term finances AND (currently) I provide all of the income and benefits for our relationships.

I've spoken about long-term finances, long-term budgeting, planning for retirement, figuring out the necessary death benefits, etc. to ensure my family is taken care of in the event of my death or incapacitation.  However, my spouse isn't really that interested in the underlying topic and the prospect of my death is very unsettling to her.

So, I have written a very long (26 page) set of instructions describing in detail how all of the parts work together, what benefits she should receive, how much those benefits should be, where monetary benefits should go, how they should be used, etc.  Because it is possible that she may need this information if I become mentally incapacitated instead of dead, these instructions include information about the benefits (such as disability and Social Security disability) that she should receive.

Where I have the information available, I include contact information and instructions for how to reach the people administering the benefits information.

Since much of this information is highly personal, I'm instead providing an outline of the instructions that might be beneficial to people.

I've attached an outline of what I wrote.  My details included more information with specific instructions for each account.

1. BEFORE YOU DO ANYTHING ELSE: Collect necessary information from the Safe Deposit Box.  Ideally, do this before the bank learns of my death so that you have the necessary paper work to move forward.
2. The next thing you should do is GET HELP.
1. Get personal and professional help from our family
2. Get tax help from an accountant
3. I’m eligible for generous benefits from my employer.  So regardless of whether the incident is my incapacitation or death, contact my employer to get that paperwork started as soon as possible.  You will likely need to complete information on the following topics listed below.  If one of these topics is not covered, contact my employer and ask them about it:
1. Life Insurance payout – where do you want it to go?  This is not tax advantaged
2. Accident Insurance payout – where do you want it to go?  This is not tax advantaged.
3. Accumulated leave payout – where do you want it to go?  This is not tax advantaged.
4. 401K– where do you want it to go?  This money can be directly rolled over to another tax advantaged account for a spouse but not anyone else.
5. Health insurance COBRA – Should you extend coverage?  Yes, pay the fees to extend the coverage until you can figure out how you want to handle health insurance.
6. Company Stock Purchase – where do you want it to go?  This is not tax advantaged.
7. Disability Leave – in case I’m incapacitated, use as a replacement to my employment income.
4. Contact your retirement/investment account company and get my accounts transferred to you.  They’ll ask about these accounts:
1. Traditional IRA – where do you want this money to go?  This money can be directly rolled over to another tax advantaged account for a spouse but not anyone else.
2. Roth IRA – where do you want this money to go?  This money can be inherited by anyone and retain its tax advantaged status.
3. Brokerage – What to do with this?
5. Contact Social Security
1. Get (one time only nominal) Death Payment – payable to any family member.
2. Ask about Survivor’s Insurance Benefit – you’re only eligible for (reduced) payments after YOU reach age 62 or full benefits at age 65 but telling them now could make life easier.
3. Ask about Survivor’s Insurance Benefit – only available as long as your youngest is younger than 16.
4. Ask about Dependent Child Benefit – only available as long as your youngest is younger than 19.
5. Ask about Disability Benefit – only available if I am disabled and not dead.
6. Contact financial institutions
1. Banks
2. Brokerage houses
3. Etc.
7. Contact all utilities
1. Car insurance
2. House/renters insurance
3. Cell phone service
4. Electricity
5. Internet
6. TV/Cable
7. Land line
8. Garbage pickup
9. Sewer/Septic
10. Credit cards
11. Home Equity (Loan/Line of Credit)
12. Mortgage
8. Configure your portfolio for all accounts.
1. Roth – Provide instructions for managing this portfolio
2. Traditional – Provide instructions for managing this portfolio
3. Brokerage – Provide instructions for managing this portfolio
4. Living expenses – Provide instructions for managing this portfolio
9. Payoff the debts indicated in the details – it may make sense to streamline the family’s budget by using some of a lump sum pay-out to pay-off outstanding debt.  In general, I’d keep the mortgage but would consider paying off any other debts.
1. Credit cards
2. Car payments
3. HELOC
4. Mortgage
5. Etc.
10. Consider the disposition of physical assets (sell, keep, or gift to the kids)
1. Coins
2. Stamps
3. Vehicles
4. Or other valuables