Have you thought about the vital documents that you or your heirs might need later in life? Do your heirs know where they’re located? Do you?
Thinking ten years ahead and preparing for probable scenarios is good practice for minimizing financial surprises. Documents you’ll want to inventory and replace if missing include birth and death certificates, marriage certificates, divorce decrees, a Social Security card, and unexpired identification (such as a passport or state ID). By collecting these documents in an easy-to-find file now, you save yourself, your spouse, your heirs, and your executor the task of replacing them later.
Family Records of Birth, Marriage, Divorce, or Death
Birth, marriage, divorce, and death each bring a new normal to a family, whether adding new family members or saying goodbye to others. As life unfolds, these events may involve you or your children, and each new (or former) spouse is added to or removed from financial accounts and ownership records.
For each birth or marriage, the official birth or marriage certificate from the court (not the fancy one you frame for your wall) is necessary to prove citizenship, legally change one’s name, or prove that name change. A divorce decree works in the same way. It proves the old marriage is no longer valid and also documents any name change. Both marriage certificates and divorce decrees should be kept with beneficiary and estate files to prove what should be rightfully awarded or divided at the time of the spouse’s (or ex-spouse’s) death. The divorce decree proves an ex-spouse has no right to inherit any accounts or property.
When serving as an executor for an aging parent, sibling, or other family member, you will need an older divorce decree to legally sort inherited property or explain an old married name on decades-old documents. Requesting a copy of the decree while one of the parties is still alive is much easier than sorting through mountains of paperwork after they’ve passed. If one of your children has divorced, updating legal paperwork to reflect that divorce is also vital, including reviewing any wills, trusts, or beneficiaries to remove the ex-spouse from your records.
When a loved one dies, purchasing multiple certified copies of their death certificate right away is wise. Banks, lenders, courts, title companies, and more require an official copy to update their records. Ordering several copies soon after your loved one’s death will provide you with the necessary proof of death to various institutions, as they will not return the original copy. Having several death certificates on hand will vastly help you sort their final affairs swiftly and with ease.
Social Security, Passports, and Government ID’s
If you don’t already have a Social Security Administration account set up online, now’s the time to do so. Setting up an online SSA account requires identity verification which will be much easier to provide now as opposed to during a crisis or after a loved one has severely declined. This account is essential for viewing and downloading your Social Security statement as well as any retirement benefits you’re entitled to.
Your SSA account also lets you order a new Social Security card should yours be lost, damaged, stolen, or if you have had a name change. You will also need to present your physical Social Security card to apply for work permits, registering for school, and applying for a driver’s license or state ID. Using a tax form or tax return to prove your Social Security number is more challenging, as these documents no longer display the nine-digit number for security reasons.
When applying for a passport for the first time, you will need your birth certificate to procure it. For long-time passport holders, keeping your passport current is key. Many countries require several months of validity on your passport to travel, so don’t sleep on keeping it up to date. Your government-issued IDs must be REAL IDs to fly domestically. You’ll also need your birth certificate to obtain one.
Keeping your vital records current for later use is not about predicting every event, but being ready for them when they occur. Give yourself and your loved ones peace of mind knowing that if anything happens to you, your heirs and advisors will not be scrambling to find these documents.
At Organized Instincts, our certified Daily Money Managers help you update critical documents you and your heirs may need over the next decade. Reach out today to discuss how a DMM can help you build a 10-year document file and keep it current as life unfolds.
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