The Ultimate Gift from Mom and Dad: Financial Clarity

“Somebody should tell us, right from the start of our lives, that we are not going to live forever. Then we might live life to the limit of every day. Do it—what you want to do—do it now! There are only so many tomorrows.”

—Collingswood native Michael Landon

Do Your Heirs a Favor
The passing of a loved one is never easy for friends and family, but it can be even more difficult if the survivors do not have the information they need to make decisions and take care of final arrangements.

Legal documents such as a will and power of attorney are important, but a letter of instruction—which is not a legal document—could be just as advantageous for your heirs. It enables you to express your final wishes and provide guidance on the many personal and financial matters that your heirs may face after your passing.

A letter of instruction can convey any information that might help your loved ones, such as:

• People to contact, such as attorneys, financial professionals, insurance agents, and accountants.
• The location of important documents, including your will, insurance policies, birth certificate, marriage and/or divorce papers, Social Security and Medicare cards, tax returns, vehicle titles, and deeds to the real property.
• Your wishes for final arrangements such as a memorial or funeral service and organ donation.
• Information on your bank and retirement accounts, including account numbers, PINs, and passwords.
• A list of creditors and the location of bills.
• A description of any important information to be found on your computer, including login IDs and passwords.

Store your letter in a safe, yet accessible place. Tell your loved ones where they can find it, and give copies to the executor of your estate and other trusted individuals. Some information in the letter may change over time, so consider updating it regularly.

It may not be pleasant to think about what might happen after you’re gone, but leaving a clear letter of instruction could be a final act of gratitude for your heirs.

Collingswood Patch readers! Get a complimentary copy of our 16-page Estate Assets Workbook. Call (toll-free) 1-800-MONEY-SHM for your copy.

Stan Molotsky is President and CEO of the Voorhees and Collingswood-based SHM Financial Group. He hosts The Molot$ky Money Hour live Monday at 10 am on WWDB-AM 860 in Camden, Burlington, and Gloucester Counties, and Saturday at 7 am on WWOB-AM 860 in Ocean and Monmouth Counties.

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. Its content is derived from sources believed to be accurate.

Neither the information presented herein nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. You are encouraged to seek tax or legal advice from an independent professional advisor.