Does your family know where your will is?

Dave Ramsey promotes having a "love drawer," which is his term for a designated home for your important estate planning and legal documents.

I cannot tell you what a relief it is for a grieving family to find Mom's will and other documents all in place at her death.  In this way, there is no scrambling to find documents amidst tears and a billion other little undesirable tasks. And, it is never too early to assemble these documents in a fireproof box in your home.

What are the basic documents that you should assemble?  If you have young children, at a minimum, I recommend having a will with a guardianship provision or a testamentary trust.  In the best case scenario, young families should have a living trust that provides for their children's education and living expenses.  These expenses can be funded with an appropriate insurance policy. 

You should also have a power of attorney.  There are several types of powers of attorney--the general durable, in which you appoint your spouse, sibling or friend to take care of your business and personal matters in the event of your disability.  There is also a springing power of attorney that should be prepared before leaving on vacation (if you are leaving your kids behind with grandma and grandpa!!)  I always prepare one of these before I leave.  It gives my parents the authority to seek both regular and emergency medical care for my kids in our absence.

Some other important documents you should keep:  a medical directive, which lets the hospital know the level of life support you would like, if you cannot communicate this for yourself.  It is more authoratative than your spouse's word.

Other important items to include: the keys and location of your safety deposit box, the location of your pre-purchased cemetery plot, directions for your burial or funeral service, the deed to your home, bank account information, car titles, and any last notes that you want to leave to your loved ones.

Of course, there are many other things that could be included as well, such as stocks and bonds, property rental agreements, business documents, and other documents that reflect the financial status of your life.

Rather than avoid the inevitable, I urge all of you to consider assembling these important documents and finding a special home for them in your home. Your family will be very thankful that you did.

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