Make Your Death Easier on Your Heirs by Writing a Letter of Instruction

Something I've had on my to-do list for quite some time is to write a letter of instruction to my wife and kids. It basically tells them where all the financial records are, what key passwords are on our computer, what's in each account, etc. -- stuff that I know well but that would take them awhile to sort out. I go through all of this verbally every year with my wife, but I'm positive she doesn't remember most of it and I need to write it down for her.

Money magazine recently covered this issue and listed some things you should consider in writing a letter of instruction. Their thoughts:

• Be specific. Include the sort of end-of-life wishes you want the person who holds your health-care proxy to know.

• Consider what not to write. Resist the temptation to unload and say all the nasty things you might have liked to say in life.

• Talk about it. Make sure your kids know the letter exists.

• Update it. Read the letter once a year to make sure it reflects any changes you've made in your financial life or in your thinking.

They also have a list of what you should write including:

• The location of key documents
• Policy/account numbers for key policies/accounts
• Phone numbers for all your major family contacts

After getting your will straightened out, this is probably the best thing you can do to make sure your death is as easy as possible on those you love.

Comments

[Katy Raymond]

Eight years ago, before I went under the knife for brain surgery, I put together what we now lovingly refer to as The Raymonds' Book of Life. It contains all this info, which my dear husband would not have been easily able to put his hands on if I'd died. Now he and my three grown kids all know what's what and where's where. I do update it often.

[Lynnae@Being Frugal]

Thank you for posting this. Last December my father-in-law passed away. He had a lot of his important documents in one place, but his will wasn't valid, which caused a few problems.

Being the executor of someone's estate is a hard enough job without having to hunt down documents and accounts.