“Where There’s a Will…” there should be a will companion

Sadly, we’ve seen more clients and members of their family pass away in the past 18 months than any other time in my 25 plus years in the finance industry. And while none of these tragic events were directly related to COVID, I am sure that the isolation and general negative aspects of living life during the pandemic had a part to play. In seeing so many individuals cope with loss recently, one piece of wisdom I have gained is the huge value to your loved ones by simply being prepared for your own departure from this earth.

I’m talking generally about estate planning but today I will focus on the information aspect of estate planning. It’s critical to have a will and a power of attorney, and to make wise beneficiary elections. It is also important to have a will companion. Pre-arrangements for a funeral are a nice thing to do when considering the future. But there is one piece that is often missed in these preparations – making sure key information is easy to access. 

In our offices, we use something we call a Will Companion. Essentially this is a single document that makes it much easier for heirs and/or executors to deal with the mess of paperwork and decisions that come after one passes. I am not diminishing the importance of normal estate planning documents. They are a must. And the more you do the better. 

But a will won’t tell your executor that you have $1,000 in a PayPal account. If you have pictures in your iPhone that the family might want to see, they may not be able to access them because no one knows your password. The problem with these apps is that we need them to be secure so we have passwords that maybe even our spouses aren’t aware of. 

Recently a colleague of mine shared in our Executor Connect webinar how his father passed away leaving a hidden safe in the basement with an unknown combination number. Fortunately, they found the safe, but it had to be destroyed in order to access the contents. That doesn’t need to happen. That shouldn’t happen.

Wouldn’t it be easier for the executor to have a list of contacts and contact information needed when dealing with your estate? Enter the Will Companion. This is not a legal document. Rather it is a companion piece that makes things easier for the executor of a will by providing detailed information about one’s affairs. 

The idea here is to think about all the bits of information that might be valuable to an executor. Pretend for a moment that you know very little about a person and you are now responsible for getting their affairs in order. What information would you need in order to distribute their assets according to the wishes in their will and apply for any and all death benefits available to the heirs?

You would want to know things like:

• Personal Information such as SIN numbers, children’s contact information, employment information, military service records, professional advisors, emergency contacts, etc.
• Asset Records like savings and investments, pension information, business or farm interests, property and digital assets (reward programs, bitcoin wallets, other digital assets, etc.) including user IDs and passwords to access them all
• Liability Information such as mortgages, loans or leases, and credit cards (and if those cards have insurance associated with them)
• Insurance Policies including, but not limited to, home, auto, and life
• Household Account Information such as heating, gas, Internet, cable, lawn care, etc.
• Income Tax Returns including where they are held and any special notes
• Estate Planning Details such as funeral arrangements, cemetery plot information, trusts, etc.

Much of this information is very sensitive data that you would not want just anyone to have access to. Personally, I like the idea of saving an electronic version of the document on a password-protected secure USB memory stick, storing it with the will, and making sure that the executor knows the password to the file or memory stick. This will make it easy to update the electronic file every year or two without having to scratch things off paper or use White Out, and it keeps the information very secure.

In fact, this is so helpful to heirs that, as a thank you for reading this column, I’d like to give you one. No strings attached. If a Will Companion is something you like the idea of and would like a copy of what we use in our offices, we would be happy to provide you with a copy. Of course, it will be up to you to fill it out, secure it, and store it in a safe place. 

If you would like a copy, please email me personally at dr.rrsp@visionvest.ca and I’ll gladly send one out to you knowing that I’m taking a bit of stress off the shoulders of your executor. 

Arnold Machel, CFP® lives, works and worships in the White Rock/South Surrey area where he attends Gracepoint Community Church.  He is a Certified Financial Planner with IPC Investment Corporation and Visionvest Financial Planning & Services.  Questions and comments can be directed to him at dr.rrsp@visionvest.ca or through his website at www.visionvest.ca.  Please note that all comments are of a general nature and should not be relied upon as individual advice.  The views and opinions expressed in this commentary are those of Arnold Machel and may not necessarily reflect those of IPC Investment Corporation.   While every attempt is made to ensure accuracy, facts and figures are not guaranteed. 

Arnold is now accepting a limited number of invitations to speak for the 2021/22 calendar years.  If you are interested in having him speak to your congregation or other group (when gatherings are allowed to resume) regarding money matters, please contact us at admin@visionvest.ca or (604) 542-2818 with your preferred date and time.