The Retirement Newsletter: Getting my affairs in order
Issue Number: -87 — Sorting things out before I am gone
Welcome
Welcome to issue number -87.
This week, an odd one — getting your affairs in order. Yes, a bit depressing as none of us like to think about ‘the end’, but at the same time, it is something we do need to think about.
Planning for the future
Please note that I am not a financial advisor or legally trained. I am writing about what I have read over the years. This is not financial or legal advice. Please consult a financial advisor or solicitor/lawyer.
Recently, I have been thinking about ‘the end’. And all this was brought on by going to what I can only describe as a disaster of a funeral. (I will be saying more about planning funerals in a later newsletter.)
A few months back, I went to a funeral that was, well, there is no other word for it, a disaster. The funeral was nothing like the person, who I knew very well, would have wanted. The funeral made no sense and didn’t connect with the person’s life. Yes, there was the ‘they did this, they did that’ eulogy, and even that was missing key moments in the person’s life. And when it came to prayers and choice of music, it had nothing to do with the person who had died. It wasn’t their funeral; it felt like another person’s funeral. Someone that I didn’t know.
So, this got me thinking about my funeral and my ‘end’. And I released, I wasn’t prepared. I don’t mean mentally; I mean what I will leave behind and what I will need to be done once I am gone. I am not talking wills (although that is something I should get redone) but the ‘on the ground’, day-to-day stuff. If you like, my clutter and my mess.
Hopefully, all this is a long way off, but you never know; it could happen tomorrow. So, I had better prepare. Hence, I do what I always do in these situations; I started to make a list.
Ten things to sort out before I die
This is by no means a complete list, but these are the things I have identified that I need to do. The idea with the list is to make sure my wishes are carried out. Also, I want to make life as easy as possible for the poor person who has to deal with the mess I leave behind.
1. Money
Money covers many things:
Debts — Hopefully, there won’t be any serious debts such as credit card debts, loans etc. But there will still be things like mobile phone bills, electricity bills etc. So, to make life easy for the person dealing with my affairs, I will gather all possible ‘debts’ in one place, such as a physical folder with the most recent bills. But, with more and more stuff online, I may leave a folder on my computer with the information. If I do, I will need to action point 2 below.
Investments — A list of investments of my investments and where they can be found. This could include any cryptocurrency or online assets that don’t leave a paper trail.
Current (checking) accounts — This is an obvious one — my current account bank details. If you have more than one account, don’t forget to list them. If you have online-only accounts, include them.
Savings accounts — As for current accounts. Leave the details.
Time to sort out those accounts.
2. Passwords
First, I will not be writing the passwords down, nor should you. A bad idea. Not exactly secure. If you use a password manager, you could leave the master password — again, risky.
Second, you may be breaking the law by sharing passwords that give third parties access to some accounts. So, you need to be careful.
One possible solution I have found is that companies like Apple have a ‘Legacy Contact’ system, which allows you to choose someone to have access to your account when you are dead. Full details can be found here — How to add a Legacy Contact for your Apple ID. If you use this approach and use Apple’s password manager — Keychain — your legacy contact would have access to your passwords. But, there would still be the problem of breaking the law if the person accesses certain accounts.
Don’t think that setting all your passwords to the same thing will help and then passing on that one password. It won’t and it is not secure.
Whatever you decide to do, you need to think it through and be careful.
3. Wills
Plural on Wills — you should make two:
Living will — A living will states what you want in medical care. For more information, see — Advance decision (living will) and Living wills.
Will — I don’t think I need to go into this one. For more information, see: Making a will.
I need to sort both out. How are your wills?
4. Inventory
I need to make a list of things, so people know what I own, what I don’t and what I may want to leave to which person. It can only help. This also, in part, comes into number 3 above.
Do you have an inventory?
5. ‘Private stuff’
Embarrassing love letters or photos? You might want to think about how they will be viewed when you are gone. OK, so I won’t be embarrassed by such things as I will be dead, but other people might.
Time to check the back of cupboards and drawers.
6. Power of Attorney
There are two types of Power of Attorney in the UK — lasting power of attorney (LPA) and ordinary power of attorney. There was a third type, enduring power of attorney (EPA), but these were replaced with LPAs in 2007.
Ordinary power of attorney covers financial decisions and are valid while you have mental capacity. These are usually short term.
An LPA covers financial affairs, health and care. An LPA only becomes active when you no longer want to make decisions or are incapable of making decisions.
For more information, see NHS: Giving someone power of attorney and AgeUK: Power of attorney.
Do you need to grant Power of Attorney?
7. Important documents
I need to sort out my filing — paper and on my computer — so people can find my documents.
If you leave all your important documents on your computer, don’t forget number 2 above — the password.
Time to dig through the files.
8. Funeral plans
I will keep this short but plan your funeral. That way, you get what you want and not what your relatives thought you wanted. I’ll be saying more about this in a couple of weeks in Issue -85.
My funeral plan is coming along.
9. Tell someone
There is no point in thinking about this and planning unless someone knows your plans or where to find them. Moreover, talking through your decisions with the person you have decided will act for you is a good way of ensuring that your wishes are understood.
One of my family members is in for a shock!
10. Keep it up to date
Finally, I need to ensure all the above is kept up to date. There is no point in pulling all the information together today and leaving it for ten years, as it will age.
I will keep it up to date.
Where to keep it?
Years ago, not a problem. A big stack of papers in a ring binder. But that is not very secure.
One solution might be something like the Apple Legacy I mentioned above. Yet, there may be legal issues with someone else using your passwords and accessing your accounts. Plus, when you die, the payment to Apple for the account will stop, and your data will be lost.
Good luck with your plans.
Please note that I am not a financial advisor or legally trained. The above is based on what I have read over the years. This is not financial or legal advice. Please consult a financial advisor or solicitor/lawyer.
Useful links
Some useful links:
Next week
Next week, in Issue -86, I will be looking at writing — side-hustle or hobby?
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Until next time,
Nick
PS, If you have something you would like to contribute to the newsletter — a story, advice, anything — please get in touch.
Please note that I am not a financial advisor or legally trained. The above is based on what I have read over the years. This is not financial or legal advice. Please consult a financial advisor or solicitor/lawyer.