A Legacy Folder is something we all need to organise today.
They say that two things are certain in life; death and taxes. A Legacy Folder can make calculating your final estate taxes and understanding your wishes as easy as possible for your family when the time comes.
What is a Legacy Folder?
A Legacy Folder is just a simple, hard copy of all your important information that your loved ones will need to administer your estate when the time comes. And yes, this needs to be physical copies that are printed out and stored in an easy to access location. Storing your Legacy Folder on your computer may seem like a good idea, but equipment can fail, get stolen and not everyone is computer-literate enough to find where you saved it.
Obviously planning for the end is not as enjoyable as planning your retirement or seeing investment returns, however, your Legacy Folder will be a real comfort to those you leave behind.
What does a Legacy Folder contain?
Your Legacy Folder will need to contain:
Covering letter
Medical preferences
Final wishes and funeral plans
Will
Final letters to your loved ones
Details of insurance policies
Financial account details
Tax accounts
User names and passwords
Once you have everything together, you will need to let your closest family members or friends know where it is. However, just be sure to carefully consider where you put it and who you tell, as you don’t necessarily want the less desirable members of your family reading your will whilst you are in the kitchen, making a cup of tea.
We all know that people might start acting a little crazy if they aren’t getting what they think they are entitled to…
Covering letter
This doesn’t need to be anything complicated, it’s just more of a table of contents for the Legacy Folder and instructions of how to use the information. This is likely to be the first thing someone reads from you after you pass, so be sure to keep it simple and upbeat, if possible.
Medical preferences
This could detail your wishes in relation to life-support, resuscitation and organ donation. Be sure to make it clear exactly what you want and also, what you don’t want.
Final wishes and funeral plan
Perhaps there are certain people you want (or don’t want) at your funeral, you might have a preference for burial or cremation and the place you want to be buried or have your ashes scattered. You could keep it light and make some suggestions for readings, music and amusing anecdotes for your service.
Will
According to The Independent, nearly two-thirds of adults in the UK don’t have a will. This can cause serious family upset and, in the UK, cause the laws of Intestacy to come into effect.
It’s best to work with your family solicitor to draw something up but consider who you want to include, exclude and if there are any specific legacies you wish to leave. You may wish to leave a portion of your estate to particular charities or want to leave some of your belongings (chattels) such as cars, artwork, tools and the like, to certain people.
Final letters to your loved ones
When you pass away, those that you leave behind can take great comfort in knowing your true feelings. Perhaps you could include some brief letters that confirm your fondness for those close to you and any informal instructions you may have for them. For example, if you have left them a cash legacy, you may suggest they use it to buy a house or take a trip somewhere special to you both. This is likely to be your last word, so it’s perhaps worth avoiding any big revelations and try to side-step anything that requires further explanation.
Details of insurance policies
If you have insurance policies in place; such as life insurance, death in service, medical cover, funeral cover or endowment policies, you can list them out here. Be sure to name the company, policy number, approximate pay-out value, who the named beneficiaries are plus the phone number, where possible. This will make it really easy for those administering your estate to access funding after your passing.
Financial account details
Similar to the above, you can list your financial advisor’s details together with details of any SIPPs, ISAs, savings accounts, bank accounts, credit cards, loans, mortgages and other investments such as cryptocurrency and precious metals. Whatever you have, make sure those reading have enough detail to access the accounts and take the necessary steps to close them.
Tax accounts
Having your National Insurance number, PAYE records and Self-Assessment details collated can make sorting out your final tax bill as easy as possible. Be sure to include the contact details for your accountant if applicable.
User names and passwords
This can be a simple as the code to unlock your phone or your email passwords and the myriad other things we have access to online. Having access to these things can make cancellation much easier and it means those going through the list know they are complete and everything has been stopped.
Summary
We all lead very complicated lives these days and with online statements, it’s highly unlikely that those sorting out our affairs after we are gone will find a stack of paperwork to go through. This means a Legacy Folder and the details contained can turn the very worst of days into something a bit more manageable and organised for those we leave behind.
Furthermore, having everything in one place means your final wishes can be found and executed properly without something turning up late, after the event.
What’s next?
If you would like help with your finances, please contact one of our advisors today for a free initial consultation. Don’t forget, this article offers information about financial planning and should not be taken as personal advice.