In the Vault

Most people we work with have created estate plans that leave their assets to their children. However, the actual process of locating and transitioning every investment account, bank account, insurance contract and parcel of real estate can be difficult for the children depending on the type of assets and the number of accounts. As you get older it may make sense to communicate with your children about the location of your accounts and other assets as well as sharing your investment philosophy with them. Alternatively, many of our clients utilize an “online vault” that we can provide that allows them to store digital copies of their estate planning documents, a written inventory and location of all assets, as well as any specific instructions that a parent would like to leave to their children. That way when it is time for them to take over the assets and navigate the transition process, the heirs can instantly retrieve all the information they will need from wherever they are. Gone are the days of having to travel to a deceased parent’s home to search through a bunch of documents to piece together a parent’s financial picture. Whether you are an astute doit-yourself investor or work with a professional advisor, when your investments pass to your heirs they do not come with an owner’s manual. Some heirs are investment savvy, but others may be ill-equipped to manage inherited assets on their own. We typically recommend that our clients who have a decent size estate, leave their assets in trust for their heirs and, if necessary, select successor trustees that can help oversee the management and distribution of one’s assets. Alternatively, if you are happy with your current financial advisor, you can simply introduce your heirs to that advisor so they can, at a minimum, know who to call to assist them with the transition of assets and maintaining or implementing the desired investment philosophy.