Internet Passwords
Although it may not be the first thing that comes to mind when drafting your will, leaving a list of passwords behind is very important. It can make the task of wrapping up your estate easier with less confusion and headaches. Without these passwords, something as simple as closing an account can cause significant problems. By leaving a list of passwords, usernames, PINs etc., along with instructions on how they need to be handled, you are ensuring the necessary steps are taken to mitigate the chance for problems and confusion. Passwords could be needed for digital devices such as computers or phones, email accounts, social networking sites, online banking or financial accounts, online media accounts, and other digital assets. This information is for the use of the executor and should be stored securely. Its location can be referenced in the will.
Third Party & Institutional Trustees
It is important for the executor of a will to be deliberative and pay close attention, as they are responsible for carrying out your instructions and wishes upon your death. An executor may be responsible for making certain financial decisions that impact your estate value before it is distributed to your beneficiaries. In saying that, it is important you have a high level of trust in this person. It is possible to name an institution as an executor, alternate executor, or trustee. This however, may not be the best option as they will not always have much prior knowledge of you, your situation, or that of your family’s. They will also charge an executor and/or trustee fee, usually a percentage of the estate, which could be costly depending on the value of the estate. Here are some things to consider when naming an institution or management company as an executor, alternate executor, or trustee:
- How would you feel if they were responsible for organizing a memorial service?
- Would you feel comfortable providing them the ability to decide where your estate is invested?
- The above question could become a conflict of interest, with the possibility of the institution deciding to keep your money invested with them, further delaying the time the benefits reach your beneficiaries.
- They will charge a fee, as stated above, to execute your will in a way that is compliant with their policies. This may result in reduced flexibility with decisions that don’t adhere to these policies; an issue when they aren’t familiar with your specific situation.
- Along with paying them to execute your will, there could be additional trustee fees. Depending on the value of the estate the combined fees could be quite expensive, limiting the assets available for distribution to your beneficiaries.
When it comes to the drafting of will and estate documents, as with anything, some people are more qualified than others. It is important to seek out the right type of lawyer for your specific needs. TPC can help review any estate documents and can recommend the right type of professionals to assist you with your estate decisions.