At Lincoln South Rotary Club on February 25 we heard from Lorrie Benson on Estate Administration.
The focus of Lorrie's presentation was not on Estate Planning but about organizing and safeguarding the information that would make the work of setting our affairs easier for those responsible for that task.
Her hope was that, during her time with us, she would be able to motivate us to take the time and effort to pull together the type of information, documents and details that would be helpful to the PR settling our affairs.
Why does she feel this is important?
- First, the PR is likely a relative and will be going through grief over our loss. It would be best to be sure that they don't have to struggle with this information.
- The more organized we are, the less likely there will be an error in administering the estate. It might be that a bank account, off-site storage, debts (owed / due) could be missed.
- If things are found later that takes more time and costs more to settle after the fact.
- Finally, while we are going through the process it gives us an opportunity to clean up some things. Perhaps we have a small bank account that can be closed for example.
She suggests starting with the "big picture" mindset. Think about what it will take if a PR needed to step in today and settle our affairs. Do they know where to find things? Do they have the information that the need? What about keys? How about logon information for accounts?
She showed us her 3-ring binder with her information. She used plastic sleeves because you can easily inert documents or business cards into those sleeves. She has all of the documents also stored to a flash drive.
One thing that the estate will need is the past few years tax returns. So, be sure to include that information, including the tax preparer. While reviewing those returns they may find information about bank accounts or pension payments. That would lead them to search for those items. So, as things change, document the changes, and date when that took place. That will save them time to not search for something that no longer exists.
As we are documenting, things that often change are automatic payments from the bank. Include information about those and how to change. Also utilities - how to contact them and adjust payments.
As you are gathering account numbers and logon information, Lorrie suggested to consider security. She has done hers on a stand-alone compute - not connected to the internet. She also has not saved it to her computer hard drive, instead she has a separate external hard-drive for that data.
As you choose your documentation format, consider how you will update it. If you hand-write use a 3-ring binder - something that can be added to. If you use a spiral notebook updates, changes are documented in the margins instead of replacing pages. That may make it hard to determine the current status.
You might consider an opening page that includes a list of information as a starting point:
- Car spare key, title
- Date of Birth
- Name
- Address - where/how you get your mail
- Keys - house - where is the spare? Does a neighbor have access to keys or garage codes? Mortgage information?
- Social Security Number
- User names and passwords
- Cloud / backup software - what used, how to access
- Bank accounts
- Auto payments
- Homeowners Insurance -when due
- Debit and credit cards
- Legal and financial documents and contacts
- Who prepares tax returns
- Who manages financial items
- Suggested law firm
- Details about any insurance policies
- Valuable items – PR may not know – if you have items you don't want to be donated, be sure to list
- Sole Proprietor - if you have a company set up - details
Consider using a Bank Trust to manage the estate. That relieves the PR of a lot of the leg work. Paying a Trust department an hourly fee is relatively inexpensive compared to the time and frustration that it reduces.
Some things to do in advance - it may be too late if you list it for the PR - health information, funeral arrangements, caring for pets.
Dive in and get it done! It takes thoughtfulness and perseverance - you will doing a wonderful service for your family.
BIO
Lorrie Benson holds a law degree from Creighton University and a bachelor’s degree from Iowa State University. Prior to retiring late in 2019, she was Director of Publications and Sections Facilitator for the Nebraska State Bar Association, served as Assistant Director of the University of Nebraska Water Center, an instructor for the UNL Honors and Environmental Studies Programs, Senior Policy Advisor for The Groundwater Foundation, and Executive Director of Community Action of Nebraska.
Lorrie practiced law in rural Iowa where she was also a part-time elected county attorney. She is currently co-leader of Faith to Forest, a volunteer initiative by and for Lincoln faith communities focused on the special place of trees in God’s creation and our responsibility to care for them, particularly in a changing climate. She is the founding chair of the First-Plymouth Church Climate Action Team, and was co-founder of the Friends of the Nebraska Environmental Trust.