Death binders are in style in estate planning and this is one trend I can definitely get behind.
The idea is for the binder to serve as a kind of emergency guide for surviving family members in the event of the owner’s death, explaining key legal and financial information about the person’s life.
In a recent report on the trend, the Globe and Mail noted that some couples go even further, depending on their division of labour in a relationship. In addition to spelling out the family’s assets and bills, they may also leave instructions in the binder so that their partners can take over household chores and property maintenance responsibilities – adding and updating details as they occur to them.
Despite their morbid name, death binders could prove to be an invaluable source of comfort for your loved ones, who will have enough other things to worry in the emotional turbulence of the grieving period.
If you are thinking about creating your own death binder, here are some key things you should consider including:
- Your will: An updated copy of your will is a good starting point for your death binder collection, as well as instructions for finding the original, since this is one of the most important tasks assigned to the executor of an estate. My practice is generally to store wills for my clients, but you may have made other arrangements.
- Your assets (and liabilities): The death binder is a great place to comprehensively list all of your financial and major physical assets, including your banking and investment account details, retirement savings, any life insurance policies and real estate holdings. On the flip side, it’s also a good idea to list your key liabilities, including credit cards, lines of credits, mortgage and other loans, since your estate will become responsible for these debts on death.
- Personal information and documents: Many death binder owners include their key identity documents, such as their social insurance number, birth certificate and health records.
- Funeral and burial wishes: Funeral arrangements are another of the major responsibilities for an estate trustee – and typically one of the first things they will have to take care of after your passing. Make their job easier by explaining your preferences and detailing and pre-planned arrangements.
- Digital assets: It’s not just your online bank account that surviving friends and family will want to get access to once you’re gone. At Laredo Law, we encourage new clients to create an inventory of all their digital assets – including social media profiles, online banking and even loyalty points. Listing all your social media memberships and passwords could also save a lot of heartache and hassle, since Canadian law is not really equipped to deal with these issues and each site has its own rules about who – if anyone – can be granted access.
Disclaimer: The content on this website is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this website are advised to seek specific legal advice by contacting members of Laredo Law (or their own legal counsel) regarding any specific legal issues.
