Where are Your Important Documents and Passwords? Who Has Access?

That’s one of the first questions you need to ask your spouse, or your parents (elderly or not), or even your children (young and old), in the event of an emergency such as with incapacity or their death. Where are your important health and financial documents and passwords?

In the current environment of cybersecurity concerns, we are dealing with ever more complex passwords, more online accounts, multi-factor authorizations, encrypted emails, as well as heightened attention to possible scams. What would it take to recover these or be granted access to them after a loved one is gone or incapacitated?

For these reasons, it is urgent to know where to find passwords and account numbers before you have to deal with extra paperwork, phone calls, delayed income, unpaid bills and general confusion.

Before a loved one passes away, do you know how to access these systems?

• Mobile phone
• Financial accounts
• Email
• Encrypted email messages
• Password manager
• Computer
• Social Security

More questions to ask

• Where are the account numbers and statements? Are they on an excel spreadsheet? Are there paper backups? Are they stored in a binder?
• Who else might have these? Estate attorney? Financial advisor? Adult child? Close relative?
• Are all the accounts in both names?
• Are the beneficiaries updated?
• Do you have a will? Where is it?
• Are your other estate documents executed? Where are they?
• Where are your other legal documents?
• What about divorce decrees and settlements from previous marriages?
• Where is the safe deposit box key?

Of special consideration – who outside the marriage could you trust with passwords? Adult children?  A trusted fiduciary financial advisor? Attorney?

Watch out for elder abuse

Financial elder abuse is the illegal or improper use of an older adult’s assets often by someone they know and trust, family members, caregivers, neighbors, friends and scammers.

Common forms of theft include:

• Stealing money or valuables
• Forging signatures or financial documents
• Misusing power of attorney
• Pressuring elders to change wills or transfer assets
• Unauthorized access to bank accounts
• Online or phone scams targeting seniors
• Identity theft

When this occurs, it can devastate their financial security and independence. Be alert to the warning signs such as unusual bank withdrawals or transfers, missing belongings or financial documents, sudden changes in financial habits or legal documents, isolation from friends or family, a new “friend” or caregiver exerting control over finances, unpaid bills despite sufficient income and fear, confusion, or anxiety when discussing money.

Here are some prevention strategies to protect older adults:

• Encourage transparency in financial matters
• Use trusted professionals for legal and financial advice
• Monitor accounts and credit reports regularly
• Limit access to sensitive financial tools like checks and online banking
• Educate elders about common scams and tactics
• Establish legal safeguards like durable power of attorney with oversight

Should you suspect elder abuse, contact Adult Protective Services (APS) in your state and report it to your local law enforcement.  This is why it is important to add a trusted contact person to all your financial accounts.

Blended families

There are many families who have expanded due to second marriages.  It is important to discuss how finances will be handled within the combined households to prevent trust issues.  Most want to ensure the split of assets are done fairly amongst heirs.  Others may keep assets separate while splitting only shared assets.  This is a complex issue and should be discussed with your financial planner and estate attorney.

Develop helpful professional relationships

These days, you can get cash at the grocery store and deposit checks from the comfort of your home – but don’t avoid visiting your neighborhood bank branch. Make a point of getting to know the manager and assistant managers. If you suddenly need access to an account or safe deposit box, the staff may be able to vouch for you to help you with any paperwork.

While it is possible to execute estate documents online, having an actual estate attorney will be helpful in safeguarding documents and helping you through the sometimes-complex legal processes within your state following a loved one’s passing or incapacitation.

Another important professional relationship to consider is with a tech support company. When you have a problem, they can diagnose and fix computer problems quickly and potentially keep you from losing important files. They offer ad hoc services as well as annual subscriptions.

Finally with all the push for so much of our lives to become digital, you should purchase some type of computer protection service such as Norton 360 Deluxe or McAfee Total Protection, that can help you create, encrypt, and maintain back-up files to protect you against computer breaches, scamming attempts, and computer viruses.  Ensure you always keep these services updated to protect your computer from new digital dangers.

Don’t get overwhelmed. Contact me and I will be your guide. 

Click here to start the conversation with Harris & Harris Wealth Management.