By Greg Iacurci—
CNBC
“Sorry, I'm dead.”
So begins certified financial planner Doug Boneparth, what he calls a “death note” for his wife, Heather.
This document, he says, is different from other pillars of estate planning, such as writing a will that lays out your wishes about how to distribute assets after death (otherwise, state law decides for you ).
A woman reading a noteKathrin Ziegler / Digitalvision |
Getty Images
A death note is more informal — it doesn't have to be legally binding — but no less important, says Boneparth, president and founder of New York-based Bone Fide Wealth and a member of CNBC's Board of Advisors.
Its content aims to facilitate the administrative work that loved ones assume
when one dies.
“This letter is more about helping you take control at a time when everything seems out of control,” Boneparth writes in The Joint Account, a couples and money newsletter he writes with his wife.
“It fills in gaps and provides immediate access to information that estate planning documents typically don't have,” he adds.
What to include in the death note
A death note can itemize all of the deceased's bank accounts—savings, credit cards, investments and insurance, for example—along with account numbers and login information.
The same goes for the bills associated with regular household bills: mortgage, utilities (electricity, water, gas, Internet and telephone), car insurance, gym fees and streaming services
,
for example.
It may also include more confidential information: important points of contact, such as your estate planning attorney, accountant, business contacts, and close friends—anyone who may be helpful in helping your loved ones through the first steps after your death. explains Boneparth.
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Those loved ones will also likely need access to your computer and phone if you pass away.
This digital
dilemma
can be overcome by revealing device access information and credentials to any type of password manager.
Winnie Sun, co-founder of Sun Group Wealth Partners, based in Irvine, California, and a member of the CNBC Board of Advisors, says that
“when people are left behind, they are already grieving and distraught.”
By writing a note, she “gives them time to grieve the loss and, at the same time, makes life so much easier because everything is well organized.”
Otherwise “it's chaos,” he says.
Sun does not refer to this concept as a death note, but as the assembly of one's own financial
medicine cabinet
(here he breaks down the relevant content).
Don't forget your social media accounts.
According to advisors, Internet presence is also an important element of the death note.
For example,
how would you like your social media accounts
and professional websites to be managed after your death?
Should they last in perpetuity or be erased?
When Sun's father passed away, the family was able to access their social media accounts and download content such as photos that they wanted to keep.
“It's not just about money, it's about memories we wanted to have,” says Sun.
Also, don't forget the “handier items” of your note: the location of spare keys to the house, car, or safe, as well as any physical documents such as life insurance policies, deeds to the house, or titles. ownership of the car, adds Boneparth.
Don't keep it a secret
Advisors recommend updating the note once a year or when a major life change occurs (opening a new bank account, purchasing a property, obtaining a new loan, for example).
And most importantly, don't keep the note a secret.
Inform your loved ones that you have written it and tell them where they can find it.
Boneparth printed out his note and keeps it in a safe at home.
Others can place it in a bank safe deposit box, for example, and have a digital copy.
Ultimately, thinking about one's own desires and giving clarity to those we leave behind after death "is an act of love, not fear," he asserts.