I recently met with a husband and wife to prepare their estate planning documents. During our meeting, the wife joked about her husband's "exit folder" on his computer. Though it was a light-hearted joke, it shed light on an often overlooked part of estate planning. Estate planning documents like a Will and Power of Attorney are essential, but compiling an organized "exit folder" can go even further in reducing stress and confusion for your loved ones when they need to step in.
What is an "exit folder"?
An "exit folder" is a folder in digital or hardcopy format that contains your critical documents, important information, and instructions that may help your loved ones to help you. This can be especially helpful for your Agent under your Power of Attorney and for your Executor named in your Will. By compiling the information into one folder, it helps those individuals access your important information, eliminates the guesswork, and allows them to act on your behalf quickly and effectively.
What should be in my "exit folder"?
Your "exit folder" should include (1) essential personal and medical information, (2) estate planning and legal documents, (3) information regarding your assets, debts, insurance plans, and taxes, (4) information regarding your minor children and pets, (5) contact information for immediate family members, emergency contacts, and professionals, and (6) any other information that may be helpful or important in advocating for you or managing your affairs.
I don't want to give anyone access to this information now. How do I maintain my privacy now while also preparing them for the future?
Typically, it is unnecessary and unadvisable to provide this information prematurely. Instead, give your trusted individuals instructions on where or how to access the information should it become necessary. Be sure to store this information in a secure, private space to help protect it from misuse or prying eyes.
IMPORTANT NOTES:
1. Be sure to choose a format that works for you and is easy to update over the years.
2. If you choose to create a digital "exit folder" on your computer, you will still need to keep your original, signed estate planning documents in hardcopy format (i.e. your Will, Powers of Attorney and Living Will).
Unsure where to start? We're happy to provide a copy of our comprehensive "Exit Folder" checklist after your initial estate planning appointment.
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