What's More Important Than a Will?

Author

Silver FOX
January 22, 2024

In today’s Email:

  • Foxy Fact: Learn More About Pet Trusts

  • What’s More Important Than a Will?

  • Trending: Digital Estate Planning on the

    Rise

FOXY FACT: Did you know that as of 2016, every state in the U.S., along with the District of Columbia, has a pet trust law? Minnesota was the last to join the list, ensuring that all across the nation, responsible pet owners can legally secure the future care of their pets. In fact, “77% of pet owners designate a guardian for their furry friend.” It's a testament to how pets are increasingly seen as valued family members. However, be mindful that some states have set limits on how much can be allocated for pet care, to prevent excessive funding. To get the details right for your furry friend, it's best to check your state's specific statutes or consult a licensed attorney.

What’s More Important Than a Will?

5 minute read

In today's fast-paced world, it's common to plan ahead for the future by creating wills, living trusts, and power of attorneys. However, one important tool that is often overlooked is an Emergency Binder. This binder is even more crucial than the usual estate planning documents. Let me tell you why.

In 2015, my nephew unexpectedly passed away at the age of 36. As our family gathered in shock and grief at the funeral home, we were unable to answer many of the questions needed for his funeral. Forget about a will or other legal documents no one had or knew where to find. That experience taught me a valuable lesson. This terrible experience immediately prompted me to create an Emergency Binder for myself and my parents since I was their primary caregiver. These binders are easy to create, and I would like to share a few details so you can create one too.

Why an Emergency Binder?

Life is full of surprises and can be unpredictable. Even though wills and living trusts are focused on addressing what happens after we die, they may not provide guidance for many situations that may occur during our lifetime. This is where an Emergency Binder comes in handy. It provides a centralized and easily accessible source of important information, which can be used in emergency situations to represent our interests.

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52% of people don't know where their parents store estate planning documents.

The binder I created for my parents became invaluable as my parents’ health and capabilities declined. My sister and I knew exactly where everything was and easily found all the legal documents we needed to handle their affairs. For example, when it came time to sell Mom’s house after she passed, I used the Durable Power of Attorney I had for my father to take care of everything on his behalf.

What's in an Emergency Binder?

This comprehensive tool goes beyond the basics. It includes anything you deem important. Here are some suggestions on items you should include:

  1. Contact Information: Friends, business associates, medical and dental care providers.

  2. Personal Preferences: Burial, cremation, eulogy, and other personal wishes.

  3. Legal Documents: Wills, Living Trusts, Pet Trust, Powers of Attorney, Healthcare Directives, long-term healthcare insurance plans, passports, social security cards, marriage certificates, birth certificates, car titles, and home titles.

  4. Emergency Contacts: For healthcare, financial matters, and personal affairs.

  5. Pet Care Details: Information about pets and their care, including pet insurance information, veterinarian, health records, and Pet Trusts.

  6. Children's Information: Schools, friends, and activities.

  7. Financial Information: Bills, investments, and strategy, with secure password protocols.

  8. Military Documents: Military service records, VA benefits information, contacts for Veterans Affairs, military ID or DD214, information on military medical records, and details of military pension or retirement plans.

  9. Insurance and Tax Returns: Essential for managing financial affairs.

Important Links to Help You Get Started on What to Include in Your Binder:

What You Need to Create an Emergency Binder

Some basic supplies to shop for are:

  • Binder (a minimum of 1.5 inches)

  • Page protectors and dividers

  • Flash Drive (store your documents electronically — optional)

Your binder doesn’t have to be fancy. This is a table of contents I created for my parents’ Emergency Binder in 2016. Everything is hard copy.

Security and Accessibility

The binder is created with the intention of being secure and easily accessible. To ensure safety, passwords and sensitive information are stored separately, while keeping vital information at hand for those who need it. It's important to keep the binder in a secure location, but make sure your loved ones and estate executor know where it's located. I'm updating mine currently (something you should do annually), but my sister usually keeps it in a secure spot in her home.

Do It for Your Loved Ones

I'm deeply convinced that having an Emergency Binder is not just a necessity, but a profound act of love and responsibility. I've witnessed firsthand the heartache and turmoil that arises when this crucial information isn't readily available during life's most challenging moments. I’ve also experienced how smoothly things go if you have an Emergency Binder in place.

Creating an Emergency Binder might seem like a small task, but its impact is immense. It's about more than just organizing documents in one place; it's about providing peace of mind, both for you and for those you cherish. Imagine the difference it could make in a crisis – instead of scrambling in confusion and stress, your loved ones would find clarity and direction. I urge you, for the sake of those who mean the world to you, to take this step. The time and effort you invest now in compiling your Emergency Binder is a small price for the invaluable gift of ease and certainty it provides when it matters most.

TIP: To further lessen your family's burden during a loss, consider prearranging and prepaying for your funeral. This was the second important lesson I learned after my nephew's sudden passing. Handling funeral arrangements while grieving was extremely hard. My sister, her husband, and I have prearranged and prepaid for our funerals, just as we did for our parents. This preparation significantly softened the emotional impact after our parents' passing.

Digital estate planning is increasingly trending as more of our lives move online. Recognizing the importance of managing digital assets posthumously, individuals are taking proactive steps to inventory and plan for their digital footprints. This includes social media, online accounts, and digital collections. With evolving laws and guidelines like the Revised Uniform Fiduciary Access to Digital Assets Act, people are now outlining their wishes and preparing for the accessibility and management of their digital legacies, ensuring their online presence is handled as meticulously as their physical estates.