What are the assets, where are they located, and who manages them. A recent Family Love Letter Workshop. For information about how to sign up for the next workshop, call The Myrias Group at 800.332.9053.
“Does anyone know who your key advisors are and exactly what you own – those are the answers and facts we want to get down on paper as first steps,” Barnes explains. “People try to put the cart before the horse by worrying at this stage about individual assets and whom they’re leaving the assets to. They often are intimidated by this whole process and want to jump to step five instead of starting with step one. We first have to figure out what is owned and where it is by establishing the facts. Think of those facts as a bread crumb trail that someone can follow to help them understand your complete financial picture.” That first step, Barnes counsels, includes listing all advisors engaged in an individual’s life and financial landscape. For example, advisors can include an accountant, attorneys, financial professional, retirement plan administrator, physician, banker, and employer or former employer. It’s also important to include contact information for each advisor.
“Oftentimes people will think, ‘I have a will so it doesn’t matter what my insurance policy says about beneficiaries.’ That’s incorrect,” Barnes explains. “An insurance policy is a contract, and whoever is identified on that contract as the beneficiary – regardless of how the will reads – is awarded the benefits.” STEWART BARNES A private wealth advisor with The Myrias Group, a private wealth advisory practice of Ameriprise Financial Services, Inc.
In today’s increasingly digital society, Barnes said website addresses, usernames and passwords used for accessing each account should also be listed. “Can the people you trust find out exactly what accounts you have,” Barnes asks. “Can they properly support you during your incapacity? Can they access your computer to view your accounts? More and more people no longer receive paper statements, choosing instead to pay bills, view balances, and move money online. It’s important for whoever comes behind you to know where all the accounts and related passwords are.” The next step is committing to paper a detailed inventory of assets owned and where they are, including retirement plans and accounts, stock options and purchase plans, deferred compensation, military benefits, mutual funds, stocks, brokerage accounts, and even frequent flyer miles. “We’re trying to help people make a detailed inventory and leave no stone unturned,” Barnes explains. “A lot of people will forget about assets over time or fail to provide information about them – such as the lady who had a deferred compensation plan from a previous employer that no one else knew about, or the person who owned a valuable piece of primitive furniture that no one realized was valuable and subsequently was sold for pennies on the dollar following her death.” Similarly, Barnes says it’s important to also list any items of value loaned to someone or items stored or hidden somewhere for safekeeping.
SHERYL CRAWFORD A financial advisor with The Myrias Group, a private wealth advisory practice of Ameriprise Financial Services, Inc.
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“We’ve all heard stories or seen the TV show about the contents of storage sheds being auctioned off for non-payment of rent,” Barnes says. “Many of these auctions are undoubtedly the result