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How Do I Store Estate Planning Documents?

How Do I Store Estate Planning Documents
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A common dilemma that families face upon the incapacity or death of a loved one is locating estate planning documents. While preparing the documents is the most crucial step, that is irrelevant if the documents are lost when they most need to be used.

It’s a familiar series of events: an elderly parent is rushed to the hospital in the afternoon, and once children are notified, the search for the Power of Attorney, Living Will, and Health Care Power of Attorney begins. It’s easily avoided with planning and communication, according to an article from The News-Enterprise titled “Give thought to storing your estate papers.” However, the simple solution doesn’t mean most people address it.

As a general rule, estate planning documents should be kept together in a fire and waterproof container in a location known to fiduciaries.

Most people think of a bank safe deposit box as a protected place. However, it’s not a good location for several reasons. Individuals may not have access to the contents of the safe deposit box unless they are named on the account. Even with their names on the account, emergencies don’t follow bankers’ hours. Suppose the Power of Attorney giving the person the ability to access the safe deposit box is inside the safe deposit box. In that case, bank officials are not likely to be willing to open the box to an unknown person.

A well-organized binder of documents in a fire and waterproof container at home makes the most sense.

Certain documents should be given in advance to specific agencies or offices. For instance, health care documents, like the Health Care Power of Attorney and Advance Medical Directive (or Living Will), should be given to each healthcare provider to keep in the person’s medical record and be sure they are accessible 24/7 to health care providers. Make sure there are copies for adult children or whoever has been designated as the Health Care Power of Attorney.

Power of Attorney documents should be given to each financial institution or agency in preparation for use if and when the time comes.

It may feel like an overwhelming task to contact banks and brokerage houses in advance to make sure they accept a Power of Attorney form. However, imagine the same hours plus the immense stress if this has to be done when a parent is incapacitated. Banks, in particular, require POAs to be reviewed by their attorneys before the document can be approved, which could take weeks to complete.

Depending upon where you live, Durable General Powers of Attorney may be filed at the county clerk’s office. If a POA is filed but is later revoked and a new document created, or if a fiduciary needs to convey real estate property with the powers conferred by a POA, you should update the document at the county clerk’s office.

Last will and testaments are treated differently than POA documents. Wills are usually kept at home and not filed anywhere until after death.

Each fiduciary listed in the documents should be given a copy. This will be helpful when it’s time to prove they are a decision maker.

Having estate planning documents prepared adequately by an experienced estate planning attorney is the first step. Step two is ensuring they are safely and correctly stored and ready for use when needed.

Reference: The Times-Enterprise (June 11, 2022) “Give thought to storing your estate papers.”