Getting your papers in order
Many of us procrastinate about something that's very important, but hard to
think about: getting financial and estate planning documents in order. Here's
how to tackle it, a few hours at a time, so you can soon have the peace of mind
knowing your family will be well-protected in case of an emergency.
Start by setting aside a few hours one day to get a handle on the situation,
and book a follow-up session for one month after. At your initial session, review
the status of the key documents listed below. Make a note of which ones you
need to obtain, and review those you already have to ensure the information
they contain is current and accurate.
Use this list to jot down all of the information you need to collect and appointments
you need to book. At your next follow-up session, track your progress and keep
setting aside more time until you see all your tasks through to completion.
Your essential paperwork
- Will. An up-to-date, legal will helps ensure that your
estate will be divided according to your wishes and in a timely manner, so
that your loved ones are provided for. You can also use your will to name
a legal guardian for your underage children. You can purchase a kit to create
your own will, but many people find it beneficial to seek the professional
advice of a lawyer or notary.
- Power(s) of attorney. These documents, referred to as a
mandate in Quebec, enable you to appoint someone to look after your financial
affairs if you become ill or mentally incapacitated, or to make decisions
pertaining to personal matters such as housing and health care. Names of documents
and the specifics vary by province.
- Life insurance. Make sure you have adequate life insurance
to pay off the mortgage and provide for your spouse or partner in case anything
happens to you, and for your children in case something should happen to both
of you.
- Other insurance. Ensure that you have sufficient contents
insurance to replace your belongings in case of fire, flood or theft. Depending
on your circumstances, you may also want the protection of disability insurance,
critical care or health insurance.
- Household inventory. If you ever need to make an insurance
claim, having a household inventory list will make this stressful time a little
easier. List all major items (electronics, jewelry, appliances) as well as
smaller items that can quickly add up in replacement value (clothing, books
and DVDs, toys). You might find it helps to include photos or a video for
the file.
- Key contacts. Having one centralized list (doctors, veterinarian,
close family members and friends, repair services, banking and financial services
phone numbers, insurance agent, work phone numbers, family cell phones) will
help in an emergency and for occasional reference.