Periodically examining your life and property insurance policies to ensure they still offer adequate coverage and meet the needs of their intended purpose is a worthwhile exercise to undertake in any environment. As your wealth increases, the planning purposes behind a term policy for risk mitigation purposes or a whole life policy to ensure ample liquidity upon your death may no longer be necessary. On the other hand, if the value of your assets has grown, you may need to re-examine if the property coverage you have in place is enough to minimize your increased potential liability.

Even if you take the appropriate amount of care to ensure your loved ones have adequate resources under your estate plan, it is important to understand that the estate administration process can at times be slow and clunky. Although rare, it is possible that an individual may not have immediate access to liquidity after his or her spouse’s death depending on how assets are titled. A temporary (but significant) burden can be avoided by confirming that at least some liquidity will be titled in or directly available to your spouse after you have passed.

One of the most difficult steps in the estate administration process is locating a decedent’s assets. Prior to the use of the internet for a majority of our financial transactions, it was easy for an executor to locate accounts simply by waiting for statements to arrive by mail.

To make this process easier for loved ones, compile a list of:

• Your accounts (for example, checking, savings, investment, retirement, and life insurance)
• Your property of significant value (such as artwork, collectibles, and real estate interests)
• Your liabilities
• A contact person at each relevant financial institution

This exercise will also serve a dual role by helping you and your advisors gain a clearer picture of your net worth (as mentioned in the first step).

In addition, compiling all of your information can help clarify if and where it makes sense to consolidate assets while helping you evaluate the best fit for your current professional relationships. Make the list easily accessible to your next of kin should they need it (omitting account values if you are concerned someone will access it prematurely), and – most importantly – make sure it is updated any time an account is opened or closed.

As you examine your balance sheet for completeness, remember to include any digital assets in your planning. Items such as digital photographs/videos, social media accounts, music, and digital currency tend to be very important but often overlooked with respect to access and ownership post-death. At best, accessing a decedent’s email and online accounts can be challenging, and may be a violation of the provider’s terms of service; at worst, it could be against state or federal law.

Rather than sharing passwords or account access, consider adding a “digital assets clause” to your planning documents if you do not already have one in place. This language will allow named parties to access specific items within the bounds of currently accepted legal standards.

Regardless of how well-thought-out and intended your estate plan may be, there is always room for confusion, feelings of disregard, or potential conflict when it comes to executing the details. It can be prudent to put pen to paper to fully express your intentions and hopes. In our experience working with individuals and their families, these wishes are not only appreciated by families, but can also help open a dialogue that may have not otherwise taken place.

After you have completed your review, make a commitment to repeat the process on a regular basis. Set up a calendar reminder now to give yourself an annual financial and planning checkup.