Beyond the Balance Sheet

Illness, incapacity, and death can turn even well-managed finances into a puzzle for the people trying to help. They may need to figure out which accounts exist, whether bills need to be paid, who has legal authority to act, where property records are kept, and what you intended to happen to everything you spent a lifetime building. October’s National Financial Planning Month is a good opportunity to think beyond the balance sheet. Good financial planning isn’t only about accumulating and protecting assets; it’s also about creating a clear path for managing them when you cannot.

Valuable Documents

The Consumer Financial Protection Bureau (CFPB) recommends organizing important financial documents, keeping them somewhere safe and accessible, and making sure trusted people know where to find them. Here are some documents and information worth putting in order.

Your will and/or trust. A will provides instructions for distributing property after death and can address other important matters. A trust may provide another way to hold and manage assets, both during your lifetime and after your death.

Why it matters: These documents put your intentions in writing instead of leaving loved ones to reconstruct what you might have wanted. Knowing there is a plan can also relieve family members of some of the uncertainty that comes with settling an estate.

Financial power of attorney. A financial power of attorney (POA) gives someone you choose the legal authority to manage specified financial matters on your behalf. A durable financial POA can continue to operate if you become incapacitated, depending on applicable state law and how the document is written.

Why it matters: Someone may need to oversee financial responsibilities while you are still alive but unable to do so yourself. Without advance planning, family or friends may have to pursue a court appointment, which can be lengthy, costly, and public.

Healthcare power of attorney and advance healthcare documents. Healthcare documents aren’t financial documents, but they belong in the same conversation. A healthcare POA identifies who can make healthcare decisions for you if you cannot make them yourself, while other advance directive documents can communicate your preferences for care.

Why it matters: Serious illness often brings medical and financial decisions at the same time. Clearly identifying who has authority over healthcare and who has authority over finances can help the people supporting you understand their roles rather than trying to sort them out during a crisis.

Beneficiary and payable-on-death/transfer-on-death designations. Some financial accounts and assets allow you to name the person or people who will receive them after your death. These instructions should be updated periodically, especially after major life changes.

Why it matters: Beneficiary designations can determine who receives significant assets, so an outdated designation can undermine an otherwise carefully considered estate plan. Retirement accounts are a particularly important example.

Life insurance policies. Keep a record of your life insurance coverage, including the insurer, policy information, beneficiaries, and where the policy itself can be found.

Why it matters: Life insurance may be intended to replace income, cover expenses, pay debts, or provide financial support after your death, so loved ones need to know the policy exists. Having the information readily available is one less thing to search for while grieving.

Retirement and pension information. Create a list of your retirement accounts and pension plans, including the financial institution or employer responsible for each one and your current beneficiary information.

Why it matters: Retirement assets can represent a substantial portion of someone’s estate and the rules governing what happens after death can be complex. Surviving spouses and other beneficiaries will need to work with employers or plan administrators regarding benefits and distribution options.

Bank, investment, and other financial accounts. Maintain an up-to-date inventory of checking and savings accounts, investments, certificates of deposit, and other financial assets, along with the institution where each is held. You don’t necessarily need to put sensitive account information on the same document; the goal is to make sure the accounts don’t disappear or are forgotten.

Why it matters: An organized account inventory can help an authorized person understand your financial picture, keep necessary expenses paid, and eventually identify assets belonging to your estate.

Property deeds, titles, and other ownership records. Keep deeds and titles for real estate, vehicles, and other significant property together with your estate information.

Why it matters: These records help establish what you own and provide information that may be needed when property is sold or transferred. For family members, it can also eliminate the uncomfortable detective work of trying to determine what belongs to whom.

Debts and recurring financial obligations. Include information about mortgages, loans, credit cards, taxes, subscriptions, automatic payments, and other significant financial obligations.

Why it matters: Someone stepping in to manage your finances needs to see both sides of the ledger. A current list can help prevent missed bills, unnecessary charges, and confusion.

Password and digital access plan. Online banking, investment accounts, automatic payments, cloud storage, email, cryptocurrency, and other digital property can all become part of end-of-life financial administration.

Why it matters: Your digital plan tells what accounts exist and how important information can be accessed without leaving passwords unsecured.

Funeral, burial, or memorial plans. Record any arrangements you have already made, including prepaid services, burial property, insurance policies, contracts, or other funds intended to cover final expenses. Include your wishes as well, even if you haven’t prepaid anything.

Why it matters: Funerals and other arrangements can involve significant financial decisions at an emotionally difficult time. Leaving both your preferences and information about anything you’ve already purchased can help loved ones avoid paying twice or trying to guess what you would have wanted.

Recent tax returns and important tax records. Keep recent returns and relevant supporting information somewhere your executor or other authorized person can locate them.

Why it matters: Financial responsibilities don’t necessarily end at death. An executor or personal representative may need tax information to administer an estate, and the IRS requires proof of authority before releasing certain information about a deceased taxpayer.

You don’t have to organize everything at once. During National Financial Planning Month, choose one place to start: review a beneficiary, locate your power of attorney, make an account inventory, or simply tell someone you trust where your important documents are. For a free starting point, check out CFBP’s tools for financial security later in life.

A little organization today can protect more than your money. It can give the people you love something equally valuable later: clarity.