Today I’m talking about the reasons to organize important documents so that someone you trust could find what they need if they had to step in and help you.
Why is this even a topic for discussion?
Imagine you’re unexpectedly unavailable. Maybe you’ve had an accident, are ill, or are delayed in a foreign country, and someone you trust needs to take care of something for you. Could that person find your insurance information? Locate your will? Know where your financial records are? Access the digital information they are authorized to use?
Even if we have organized these things in our homes for ourselves, if something unexpected happens, it’s important that someone we trust knows where to look.
Let’s begin this conversation by talking about what we need to do for ourselves.
Organize Important Documents in One Identifiable Place
Create one place to keep all your vital records. One of my clients keeps these documents in a locked, fire-resistant safe box under her bed. Another has them organized in a binder on a shelf in the office, and a third has a section of her filing cabinet dedicated to vital documents.
Where you keep them is not as important as organizing them and knowing exactly where they are.
Some examples of vital documents are birth certificates, Social Security cards, passports, marriage certificates, baptismal records, insurance policies, banking and financial records, wills, and estate documents. Some establish your identity, while others provide important financial, legal, or personal information.
You do not need to have physical records of everything. However, from time to time you may be asked to produce an original document.
This happened to my husband. He had a copy of his mother’s death certificate downloaded onto his computer and could easily show or send the digital record to the attorney. However, the attorney wanted to see the original certified copy. Thankfully, he knew where it was and could produce it.
As you organize important documents, make a note indicating where each one is stored and, if there is a digital copy, how to find both the digital and physical versions.
Don’t Forget Your Digital Life
We now have important information that doesn’t exist in a filing cabinet: banking and investment accounts, utilities, insurance portals, medical portals, subscriptions, email, cloud storage, social media, and more.
You may have a password manager, a password file, or another secure place where you keep your passwords. It’s easy for you to access your digital files and accounts because you know how your system works.
But would someone else?
Since we have both paper and digital information that a trusted person may need to access, it’s important to have a digital access plan. Create an inventory of important accounts and identify which ones another person may need to access. Then, provide instructions explaining how your trusted person can obtain authorized access when necessary.
Make Sure the Right People Have the Authority to Help
Once you’ve identified the person or people you trust to help you, think about whether they also have the legal authority they would need to act on your behalf.
This is not always as simple as giving someone a password or telling them where your documents are stored.
Depending on your circumstances and where you live, you may need legal documents that give another person authority to handle financial matters or participate in healthcare decisions on your behalf.
These may include a financial power of attorney and documents that appoint someone to make healthcare decisions for you. An advance healthcare directive can also put your healthcare wishes in writing and provide guidance if you are unable to communicate those wishes yourself.
Because requirements and terminology vary by state, talk with an estate-planning attorney or other qualified professional to be certain you have the appropriate documents in place.
Having these documents is only part of the job. The person you have chosen should know that you have appointed them, be willing to serve in that role, and know where the necessary documents are stored.
Make time once a year to check in with yourself and with the person or people to whom you have given these responsibilities. Verify that you still want them in these roles and that they are still willing and able to act on your behalf.
Organize Important Documents, Then Tell Your Person How to Find Them
You can have perfectly organized files, but they aren’t helpful in an emergency if no one knows where they are.
In fact, your important information may be stored in several places.
Make a short list of the important documents your chosen person or people might need. Note where they can find them and who they should contact if they need assistance.
You don’t necessarily need to give someone copies of every document. The goal is to create a road map that tells them what exists and where to find it.
This step is as important as organizing the documents themselves. If no one knows where the information is or how to access it, it won’t be much help when it’s needed.
Being organized isn’t just knowing where your important information is. It’s making sure the right person or people can find it when you can’t help them look.
Organizing Important Documents Isn’t a One-and-Done Project
Just like organizing your home, organizing important documents is not a one-and-done activity.
You can create a beautiful filing system for now, but keep in mind that things change.
Accounts close. Companies merge. You switch vendors. People move. New accounts are opened. Passwords change.
Consider establishing an annual review, perhaps around your birthday, the beginning of the year, or another date that’s easy to remember. Review your paper and digital files, remove outdated information, and update anything that has changed.
And don’t forget to update the road map you created for your trusted person.
Organization Is an Act of Consideration
Remember your reason for organizing this information.
We usually think about organizing as something we do to make our own lives easier. Sometimes, though, the most thoughtful organizing we do is the organizing that makes life easier for someone we love.
You’re organizing important documents and files so that the people you trust can help you when and if necessary.
Think of it as giving them a clear path to follow instead of a puzzle to solve.
Need Help Getting Your Important Documents Organized?
If your important papers and files are scattered in different places, or if you know what you have but aren’t sure anyone else could find it, I can help. Together, we can create a simple, organized system that works for you and provides a clear road map for someone you trust.
Contact me to schedule a consultation and take the first step toward getting your important documents organized.
FAQs
What important documents should I organize in one place?
Start with documents related to your identity, finances, insurance, healthcare, and estate. These may include birth and marriage certificates, Social Security cards, passports, insurance policies, financial information, wills, powers of attorney, and advance healthcare directives.
Should I keep original documents or digital copies?
Digital copies can be convenient, but there are times when an original or certified copy may be required. Know which original documents you have, keep them secure, and note where they can be found.
How often should I review my important documents?
Review them at least once a year and whenever you experience a significant life change. Update account information, contacts, passwords or access instructions, legal documents when appropriate, and the road map you’ve created for your trusted person.
I have certainly been through this with others and am doing my very best to have everything in order for my sons.
Putting all of this information together takes a long time but can be done in chunks and is totally worth it.
And as Diane says, it must be maintained. I try to go into my files and update each time I change a password but at the very least once a year set aside a time to go through everything and make sure the information is current.