It is often said that there are two certainties in life – death and taxes
As Chartered Accountants we deal with both of these certainties, however many people do not
adequately plan for their death. If our affairs are not seriously evaluated regularly and correctly
structured, the consequences that flow from our death can be devastating, not only for our family, but
employees, trustees and advisors.
What would you do if you had the foresight and courage to plan for your death?
If you had warning, and time to prepare, some things you could consider having in place include:Guide to the Living File - If you visualize the difficulties your surviving family and personal
representatives will face particularly if you die suddenly or unexpectedly (or suffer permanent mental
disability) then you will appreciate that one file containing all the documents mentioned below will be
invaluable to your loved ones, those who you have chosen as your personal representatives, trustees of
your trusts and your accountant and lawyer. This is a centralized place for life and health insurance
documents, notes on funeral arrangements, wills and advance directives and enduring powers of
attorney for health care. Perhaps keep it in a fireproof box at home. If you do this, make sure your
personal representatives and some family members know of its location. It can also be a good idea to
let your Accountant have copies of some papers as well.
Updated Wills -If you and your spouse have Wills that are more than say five years old or you have never
made one in the first place, make them now. Change is often a prompt to review your Will eg if you
have married or divorced, had children, changed your ownership structures or if your family
circumstances have changed. If one or both of you die, there may be complications settling the estate,
particularly if you have children from previous marriages. When reviewing and making Wills you should
consult with your advisory team, including your lawyer, accountant and people you intend to appoint as
your personal representative.
Memorandum of Wishes – this document is not legally binding but can provide your trustees and
personal representatives with guidance in relation to your wishes for the care and education of your
children and instructions for dealing with jewellery, furniture etc.
An Emergency or easily accessible cash fund- If the primary breadwinner gets seriously ill or dies, what
will you need in the meantime? Cash. While most experts recommend you keep six months’ worth of
living expenses in a joint account, consider establishing a standby line of credit while times are good if
you have not yet built up an emergency fund.
A list of critical numbers- When you are in a stressful situation, it is tough to think about what you
should do first, much less who to contact for help or support in the days and weeks afterward. Take
some time to create a truly useful phone list you can refer to in an emergency. Include everyone –
doctors, babysitters, human resource managers at your employer, attorneys, financial planners, bankers
and credit card companies. Also add your cell phone contacts and add this to your Guide to the Living or
in an obvious place.
Current health care advance directives, enduring powers of attorney - Contact your lawyer to discuss
these further if you do not have enduring powers of attorney in place.
A statement of assets, possessions and liabilities - Thinking in terms of getting sick or dying six months
from now puts a fine point on your survivor’s need to know where your assets are. The process of
putting together a Will may help you focus on estate issues, but a really helpful gesture would be the
creation of a statement of all your savings, investments and other key assets – what they are and most
important, where they are located.
Care for pets -It may seem trivial to some, but pet care is one of the most often overlooked areas of
planning. You should pre-arrange for their care with a friend or loved one in the case of your incapacity
or death.
Having the courage to consider the above and be prepared will help guide your loved ones at this
traumatic time.
Grant Eddy, Director
Leanne Silvester, Trust Manager
CooperAitken Morrinsville and Matamata
August 2012