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“I’m sorry I’m dead.”
So Doug Boneparth, a certified financial planner, writes a so-called “death note” to his wife Heather.
Such a document, he says, is different from other cornerstones of estate planning, such as creating a will that outlines a person’s wishes regarding the distribution of assets upon death. (Otherwise, state law decides for you.)
A death certificate is more informal — it’s not necessarily legally binding — but no less important, said Boneparth, president and founder of New York-based Bone Fide Wealth and a member of CNBC’s Advisor Council.
Its content aims to ease the administrative work imposed on your loved ones after your death.
“This letter is intended to help you take control at a time when everything seems to be spiraling out of control,” Boneparth writes in “The Joint Account,” a newsletter about couples and money that he co-authors with his wife written. “It fills gaps and provides immediate access to information not typically included in your estate planning documents.”
What to include on your death certificate
A death certificate may list all of a deceased person’s financial accounts – such as savings, credit cards, investments and insurance – as well as their associated account numbers and login information.
The same applies to accounts associated with regular household bills: for example, a mortgage, utilities (such as electricity, water, gas, internet and telephone), car insurance, gym memberships and streaming services.
It can also include other information that isn’t on the radar: key contact points like the estate planning attorney, accountant, business contacts and close friends — anyone who might be helpful in supporting loved ones as they take the first steps after your death, Boneparth said.
These loved ones will also likely need access to your computer and phone when you die. Such a “digital dilemma” can be overcome by disclosing device credentials and credentials for any type of master password manager, he said.
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“When people are left behind, they are already grieving and distressed,” said Winnie Sun, co-founder of Irvine, California-based Sun Group Wealth Partners and a member of CNBC’s Advisor Council. By writing a note, “you give them time to grieve and at the same time make their life much easier because everything is well organized.”
Otherwise, “it’s just chaos,” she said.
Sun calls this concept not a death note, but rather the assembly of a “financial first aid kit.” (She breaks down the relevant parts of it here.)
A person’s online presence is also an important part of a death certificate, the consultants said. For example, how would you like your social media accounts and professional websites to be managed after your death? Should they live on forever or be deleted?
When Sun’s father passed away, the family was able to access his social media accounts and download content, such as photos, that they wanted to keep.
“It’s not just about money; it’s about memories we wanted to keep,” Sun said.
Additionally, don’t forget the more “practical things” in your note: the location of spare keys to the house, car or safe, as well as any physical documents such as life insurance, house deeds or car titles, Boneparth said.
Don’t keep it secret
Update your note once a year or when your life changes significantly (e.g. opening a new bank account, buying a property, taking out a new loan), advisors recommend.
Importantly, don’t keep your note a secret — tell your loved ones you wrote it and where you can find it, they said.
It’s not just about money; It’s about memories we wanted to keep.
Winnie Sun
Co-founder of Sun Group Wealth Partners
Boneparth prints out his note and keeps it in a safe at home. For example, others may want to keep their document in a bank safe deposit box and have a digital copy.
Ultimately, reflecting on our own wishes and giving clarity to those we leave behind after death is “an act of love – not fear,” he wrote.
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2024-02-02 18:15:38
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