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POST-MORTEM
LETTER:
How
To Prepare It And What To Include
The
post-mortem letter, a simple and practical estate planning
tool you can put together yourself or with a professional ,
can protect your estate, maximize the amount available to
heirs and save your spouse and executors a lot of trouble.
This important letter tells your executor and survivors where
to locate everything they need to carry out your instructions.
»
What
The Post-Mortem Letter
Does
»
What
The Post-Mortem Letter Does Not Do
»
How
To Get The Post-Mortem Letter To Your Executors
»
What
The Post-Mortem Letter Should Contain
Does anyone other than yourself
know where your tax records and supporting tax documents are
located? How about deeds, titles, wills, insurance papers?
Does anyone know who your accountant is? Your lawyer? Your
broker? Your financial planner? Your insurance agent? If you
pass away without leaving your heirs this information, it will
cause a lot of headaches. Worse than that, part of your estate
may have to be spent in needless taxes, claims, or expenses
because the information is missing.
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The
post-mortem letter is an often overlooked estate planning
tool. Tell your executors and survivors what they need to know
to maximize your estate—the location of assets, records, and
contacts. Without the post-mortem letter, you risk losing part
of your estate’s assets because necessary assets and
documentation cannot be located.
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WHAT
THE POST-MORTEM LETTER DOES
The post-mortem letter is an extra step you should take to
make sure executors are able to carry out your estate plan. It
provides executors and survivors with the location of assets,
the identity of professionals consulted by you during life,
and the location of important records.
To represent
you after your death, your executor must know almost
everything you know. He or she must have all of the facts,
figures, and proof that you have at your fingertips. Only with
the aid of this information can the executor carry out your
desires.
The letter
also serves to inform your loved ones of things you would like
done in the event of your death and guidance as to how you
would like certain items handled. This includes many things
which may not be appropriate to include in your will or which
need to be handled immediately after death and prior to a
reading of your will.
WHAT
THE POST-MORTEM LETTER DOES NOT DO
The post-mortem letter can not be used in place of a
properly executed will and does not have the legal force of a
will. Similarly, it does not take the place of a living will.
The post-mortem letter is designed to convey instructions
after your death, as opposed to after a life-threatening
injury. It is vital to have both a will and a living will in
addition to a post-mortem letter.
HOW
TO GET THE POST-MORTEM LETTER TO YOUR EXECUTORS
Write the post-mortem letter now. Leave several copies of the letter in places where it is certain to be
found after your death—e.g., attached to your will, in your
desk, with your spouse, with your attorney, with your
executor, and/or in a safe deposit box.
If you do not
want the information in the letter revealed before your death,
leave the letter sealed.
Do not leave the only copy of your post-mortem letter in your
safe deposit box. It may never be found or may be inaccessible
after death.
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CAUTION: It is extremely important that instructions be left with the
survivors that none of your papers are to be thrown away
until the matter is discussed with your attorney,
accountant, or executor. Otherwise your efforts to
provide information helpful to your estate may be
thwarted.
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TIP:
It is critical to update the letter periodically to
account for changes that occur after you write it.
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WHAT
THE POST-MORTEM LETTER SHOULD CONTAIN
The following items should be included in the post-mortem
letter.
To-Do
List
Provide your survivors
with a list of things that your would like done immediately
after your death. Examples of such items include:
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Notify
your employer (remember to include phone numbers).
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Notify
certain friends and relatives (provide a list with phone
numbers).
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If
you have volunteered as an organ donor, provide the
information necessary for your family to act on your
wishes.
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Notify
the Social Security Administration (include your social
security number for convenience).
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Any
instructions on the care of pets.
Wills
The location of your final executed will should be
mentioned, along with any copies.
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CAUTION: Do not leave a will in a safe deposit box. Safe deposit boxes are
sealed on the death of the decedent in many states; this
will cause headaches and delay.
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Guardians
of Children
The names and addresses
of guardians for minor children in case they are orphaned
should be mentioned in your will. These should also be
included in the letter.
Funeral
and Cemetery Plot
If you have made arrangements for funeral services or have
established a pre-need funeral trust, provide details in the
letter. The location of your cemetery plot and the location of
the deed or certificate relating to the burial plot should be
mentioned. Any specific instructions for the executor relating
to burial should be mentioned in the letter.
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TIP:
For the reasons mentioned above under
"Wills," do not leave the cemetery plot deed
or certificate in a safe deposit box.
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Safe
Deposit Boxes
The location of safe deposit boxes, along with the
location of keys, passwords, and combinations, should be
mentioned. The letter should indicate whether anyone else has
access to the boxes.
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TIP:
If other people have access, ask the executor to
take inventory of the box before anyone else is allowed
to take items out of the box.
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If you have
rented a post office box, include the number, location of the
box and location of the key.
Bank
and Credit Card Accounts
All checking and
savings accounts and their account numbers should be
mentioned. Instruct the executor whether a stop should be
placed on withdrawals from these accounts, and whether anyone
else has the right to withdraw from them, whether as a
co-depositor or under a power of attorney.
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TIP:
Be sure to mention any accounts that are not in your
name, such as deposits in a Swiss numbered account.
Otherwise, these accounts may be lost because no one
knows about them.
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TIP:
Keep savings accounts active by periodically sending
a request for the balance in writing, or by making
deposits. Inactive accounts that are left for a certain
period may revert to the state.
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A list of
credit card accounts and numbers should be included. The
executor should be instructed to cancel credit card accounts
immediately, and to change joint accounts to single accounts.
Loans
Provide information on any outstanding debts. Some loans
such as student loans and home mortgages may have an insurance
feature which cancels the debt in the event of your death. In
the case of student loans, this was often paid for in the form
of a fee at the amount the loan was disbursed and many people
are unaware of this feature. Examine your loan documents for
any such features and detail them in your letter.
Tax-Related
Matters
The location of copies of your income-tax returns going
back as far as possible should be mentioned.
The location
of copies of any gift-tax returns filed at any time should
also be mentioned. If copies cannot be located, your memory of
when and where the gift tax returns were filed, and the gift
to which they related, should be mentioned. If there are any
refund claims pending, or if you feel a refund should be filed
for, mention these as well.
Attorneys
and Other Professionals
Mention the names and addresses of any professionals
associated with your affairs, or who could be of assistance to
the executor. Include accountants, attorneys, insurance
agents, financial advisors, bank officers, realtors, and
brokers. If you relied heavily on these people, they could
save your estate plenty of money and trouble just by answering
a few of the executor’s questions.
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TIP:
Also mention your physician's), since your executor
may need help in proving you were mentally competent.
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Insurance-Related
Matters
Mention all life insurance policies owned, with the policy
numbers. Give the location of the policies. Do not neglect to
mention employer-provided group insurance.
All property,
liability, malpractice, business continuation, and other types
of insurance policies should be mentioned. These policies may
save the estate from having to pay a claim, and may also
contain the location and description of properties. Further,
access to these policies may allow the estate to obtain
reimbursement for expenses incurred immediately prior to
death.
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TIP:
Mention policies that have lapsed, since they may
still have some value.
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Property
Owned
List all assets you own, and give the location of deeds
and titles. Include personal and real property.
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TIP:
If you know of a market for some of your assets that
might otherwise be difficult to sell (e.g., a special
collection or unique asset), tell the executor about
it.
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Don’t
neglect to mention property that will not be easy to locate,
e.g., property you have loaned out or sold on consignment.
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TIP:
If there is any reason why the executor should value
a piece of property at less than its fair market value,
explain why.
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Investments
List all brokerage
accounts and other investment vehicles, such as limited
partnerships or interests in real estate.
Give the
location of brokers’ confirmation slips for purchases of
securities going back as far as possible, in order to
establish the cost of securities. The cost is your tax basis,
which will affect the amount of tax you pay on a sale for
securities you may have sold prior to death. The basis of
securities held at the time of death will be determined with
reference to their current value. If you cannot locate
confirmation slips, then at least make a note of transfer
dates shown on stock certificates and registered bonds. These
dates will allow you to look up the price of the stock.
Provide
information on all retirement accounts, including IRAs.
Indicate your designated beneficiary and describe where
statements are located. In the case of IRAs, provide
information on the tax status of the account. In particular if
non-deductible contributions were made a portion of the
account may not be taxed to the beneficiary.
Employment
Provide a list of all prior employers, no matter how long
ago you worked for them. You may be entitled to pension
benefits or death benefits.
Tell the
executor where to find a description of any pension benefits
you are entitled to.
Provide the
executor with a record of any governmental employment, past or
present. For the armed services, include the branch of
service, serial number, and approximate dates. You may be
entitled to veterans’ benefits or survivors’ benefits.
Personal
Papers
Mention the location of your passport and your birth
certificate, which may be needed for Social Security benefits
and employee retirement plans. Naming the location of your
marriage certificate, which may be needed in connection with
the marital deduction, joint gifts, and statutory spousal
rights. A divorce decree will also be necessary, and should be
mentioned.
Checkbooks
Describe where your current and past checkbooks and
canceled checks can be found. These may save the estate from
having to pay a claim or expense that has already been paid,
and can establish the cost of an asset.
Inheritances
If you
received an inheritance from someone, include the name of that
person and the date of death. The executor may be able to
claim a state or federal estate tax credit for transfers
within ten years of your death. Note the location of any
letters from the person’s executor, if any.
If you have
any future rights in someone else’s property, whether by
will or by trust, include those details.
Trusts
If you have ever set up a trust or been named as a trust
beneficiary, where the trust instrument is located and when
the trust was set up.
Money
Owed to You
Mention debts owed to you by others and any proof that the
debt exists.
Legal
Disclaimer:
The information on this site/letter is provided solely for
general illustration and instructional purposes and does not
create a business or professional services relationship. Laws
and regulations vary by jurisdiction and change from time to
time; compliance with such standards depends on the particular
circumstances. Any reliance on the information is solely at
the user's own risk. Before making business or financial
decisions, please consult a Portney & Co. professional.
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