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You Need a Personal Recovery Plan
The events of Sept. 11 made many of us stop to think about a lot of things, like spending more time with loved
ones and being a better person. But the tragedies also made us ask ourselves if we're prepared should something
like that happen close to home.
If you were to die unexpectedly, have an accident, or become a stroke victim—and you couldn't
communicate—would your family know how to take care of your finances, or even know where your financial
records are? Paperwork management can become a survivor's survival kit.
According to Karen Goebel, a professor and extension specialist at the University of Wisconsin-Madison,
a well-organized family record system can:
- Provide ready access to important papers in time of emergency, such as fire, theft, or death;
- Provide family members with basic facts of your personal affairs in case of accident, serious illness, or
death;
- Help your personal representative administer your estate as you wish, and save labor in organizing records;
- Be useful to collect insurance, annuities, Social Security, or Veteran's benefits;
- Help you or your family pay rentals, premiums, and interest on time;
- Provide a basis for estate planning; and
- Help clarify what is individual and what is joint property.
Recording your info
"Keep a record book listing all of your financial accounts and account numbers, including the contact person and
a telephone number," says Connie Kilmark, a financial counselor and owner of Kilmark & Associates, LLC, in Madison,
Wis.
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Update your floppy or compact disk about every 90 days. |
It sounds simple, but it works. "Art stores carry beautiful books and journals that you can use for record
keeping," Kilmark adds. This might make the task a bit more enjoyable.
"While your records should be well organized, they don't need to be fancy," says Goebel. "Some clearly labeled
manila folders in a file cabinet will get you started. If you don't have the money or space for a cabinet, you
might try a file on wheels, plastic crates, or portable file boxes. Sturdy cardboard boxes are inexpensive and
handy for long-term storage," she adds.
Publications such as "Our Family Records,"
written by Goebel
and colleague Mary Therese Crave, also are available to help you keep tabs on your personal and financial
records—not only for yourself, but also for others who may have to handle your affairs if you are unable to.
Record the location of the originals of all important financial and family documents, such as birth and marriage
certificates, wills, deeds, tax returns, insurance policies, and stock and bond certificates. Keep the originals in
a safe place and store copies elsewhere.
You also should keep a list of emergency contacts that includes doctors, financial advisers, clergy, and family
members who live outside your area.
Some records change, so schedule a time to review them. As you revise documents, note the date at the bottom of
the page or in the margin.
Safe deposit boxes
You also can store originals of important papers such as marriage records, divorce decrees, and birth
certificates in a safe deposit box. However, don't keep your will in one—the box may be sealed temporarily
after death. Keep the original where you store your other originals. Give a copy of your will to your personal
representative.
Use a safe deposit box to store records and valuables that would cause significant financial loss or great
emotional distress if lost or stolen. And, don't carry the key with you. Keep one key in the house and one with
another person such as a relative or an attorney.
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Record the location of the originals of all important financial and family documents. |
Deciding on a safe and convenient location for a safe deposit box is another issue. You might consider renting a
safe deposit box in a
credit union branch
far enough away from your
home so it's not likely to be affected if a natural disaster
strikes your home.
If you decide to keep important documents at home, consider buying a fireproof safe.
Another option identified in "Before disaster strikes," a booklet published by the American Red Cross, the
Federal Emergency Management Agency, and the National Endowment for Financial Education, is to have an evacuation
box—a lockable, durable "evacuation box" to grab in an emergency. Even a cardboard box will do. Put important
papers into the box in sealed, waterproof plastic bags. Store the box in your home where you or family members can
get to it easily.
Using a PC
Computer software programs can help keep your financial information organized and are relatively inexpensive.
There are programs available such as Kiplinger's Taming the Paper Tiger, as well as big-name financial software,
including Intuit's Quicken and Microsoft Money.
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Paperwork management can become a survivor's survival kit. |
Software won't do you much good, though, if it's on a computer that's destroyed by a disaster. Make a backup
copy of your records and store it away from home—maybe in a safe deposit box. Update your floppy or compact
disk about every 90 days. Identify the records that you or your financial institution keep only on computer.
Because records may not be available if electrical power fails, make printouts.
If you participate in
online banking,
record your passwords in your record-keeping system. Your personal representative won't be able to access
your accounts without them.
No matter how you decide to organize your financial documents or where you end up storing them, the key is to do
it today. Involve your family, friends, and financial professionals when possible in decision making and planning.
If you do it now, you and your loved ones will be able to get through a traumatic time without the added stress of
financial chaos.
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Documents to collect
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- Trusts
- Wills
- Birth certificates
- Credit union and other financial institution account records
- Marriage certificates or divorce decrees
- Identification records (driver's license, passport, green card)
- Titles, deeds, registrations for property and vehicles you own
- Mortgage and other loan information
- Insurance policies
- Investment records
- Credit card statements
- Employer benefit statements
- Income tax information (copies of past returns, proof of estimated tax payments)
- Report of earnings from Social Security
- Social Security card
- Record contact information for:
- Credit union and other financial institutions
- Employer
- Insurance agents
- Power, light, gas, or other utility companies
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Useful resources
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Both "Disaster strikes" booklets published by:
Home &Family Finance Resource Center articles
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Published February 4, 2002
Home & Family FinanceŽ Resource Center
Copyright © 2008 - Credit Union National Association, Inc.
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