For investment portfolios, we recommend that you leave clear instructions for the allocation of these assets. Work with your investment advisor and others to determine the best ways to ensure your heirs can benefit from your generosity.
Remember, without specific instructions, your Executor/Executrix/Person-in-Charge (PIC) will be required to liquidate all portfolio holdings in order to consolidate the assets of the estate prior to any distributions to the beneficiary(ies).
By "instructions", we mean clarification of the following:
We urge you to discuss this with you lawyer, accountant - to better understand any tax implications for the beneficiary - and financial planner before making your final decisions.
Cryptocurrencies, like Bitcoin, are only held electronically in an online wallet. There is no financial institution nor individual contact for this asset; it is all electronic.
Cryptocurrencies may be part of your retirement or savings portfolios. If so, the electronic nature of the investment is somewhat different from other types of assets.
You will still need to provide instructions on how your cryptocurrency(ies) accounts should be dealt with after your passing. At a minimum, leave instructions with your lawyer or a trusted individual on how to access your electronic "key" to open your cryptocurrency "wallet(s)". The key is might be on a thumb drive or possibly written down somewhere. Generally, it is NOT kept online to prevent security breaches.
It is safer to assume that dealing with cryptocurrencies means there will be no paper documentation.
Everything is online.
Speaking of online portfolios, most financial institutions offer electronic access to your traditional accounts, as well. That includes loans, credit cards, checking and saving accounts, and investment portfolios.
Providing your Executor/Executrix/PIC with electronic access considerably helps them facilitate your wishes and makes the process easier!
For this reason, we recommend that you document all of your online user IDs, passwords, and security question answers (usually requested when signing in from an unknown device) for your Executor/Executrix/PIC or another trusted person.
If you need some sort of electronic device to produce a code for the access or need additional verification (by mobile phone or app) indicate that as well.
Also, provide the location and password (if required) of said device!
My friend died on a Friday; on Monday, the telephone rang in her apartment. It was the bank, asking about suspicious activities on her credit card, including over the weekend.
As her Executrix, I was able to instruct the bank to freeze and block her account, but I was not a signer on the account. The bank could not provide me with the details of the charges.
Luckily, my friend provided her online access information in her paperwork. I was able to go online to confirm that the $3,000 worth of charges were fraudulent.
Usually, the following retirement/saving accounts have an option to identify a beneficiary. In some states, if one is not designated, the beneficiary automatically becomes your spouse, if you have one.
These types of portfolios should also be part of the list of accounts you create for your Executor/Executrix/PIC with the relevant contact information.
Based on the tax implications for liquidating these accounts, we recommend you check with your financial advisor and financial institution about the possibility of having these rolled over into an account for the beneficiary upon your demise, rather than liquidating them.
Whatever your preference is - again, make sure you document your wishes.
Also, note that if there is a designated beneficiary, the investment/ proceeds DO NOT become part of the assets of the estate, but are paid directly to the designated beneficiary.
Check to see if your survivors will be able to access benefits you receive from social security or disability. For example, a spouses generally may receive a portion of your social security benefits.
To fully understand what will best for the survivors - especially minor children - we suggest checking with the individual agencies.
For Social Security and Disability benefits, click the button below or go to www.ssa.gov
Likewise, there are various options available for survivors/family members of people who received Veterans benefits.
To fully understand what will best for the survivors - especially minor children - we suggest checking with the Veterans Administration by clicking the button below or going to www.benefits.va.gov
Speak with your life insurance agent before claiming on a spouse's life insurance policy - especially if minor children are involved. They will be able to walk you through various options to optimize the long-term benefit for beneficiaries.
Remember - unless a bank account is a joint account you will not be able to access the money. Did the deceased qualify for government benefits?
Step-by-step guide on what to do first. Calls, Paperwork, Care Arrangements and more...
Where do you start? Physical remains, funeral options, death certificates, memorial services and more...
Key reminders on seuring residences - owned or rented, apartments or houses - after a loved one's death
What you need to know to protect and eliminate the deceased's digital presences
Funny, helpful and special stories that others have shared to helpyou through the process
Funny, helpful and special stories that others have shared to helpyou through the process
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