Maintaining financial records systematically helps us not just in our lifetime, but also our legal heirs when they get down to sorting what we leave behind. Make a list of your important financial and personal details, file and keep them in a safe place. In our last slideshow, we had shown you how you must keep a record of nine key financial details that your legal heirs would need, once you pass on. Today, we give a list of those documents that help you pass on your wealth to your heirs.
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Insurance policies: Maintain a list of all the insurance policies that you have. These would include health, life, vehicle, personal and other policies. Keep them handy in one place. If you bought these through agents, then add your agent’s phone number, too.
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Cheque books, bank details: Even if you won’t use your cheque book once you have passed on, it is still an important instrument. If your legal heirs wish to close a few of your bank accounts, it helps if they can surrender old cheque books and debit cards. Keep a list of all your bank account numbers handy and make sure your family members know where you’ve kept them.
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Bank lockers: Many of us have bank lockers to store important documents and jewelry. Many do not choose to inform their families about its existence during their lifetime. That’s fine, but making a note of it is important so that it can be found after we’re gone.
Investments: Either maintain an excel sheet with your investment details handy, or keep physical records of your consolidated account statements or demat statements. This book-keeping ensures that the distribution of your assets happen effectively and not a penny leaks out.
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Property records: Property is prone to encroachment or wear and tear if left ignored for long. Keep records of exact addresses and home buyer agreements handy. Also keep the original share certificates of your apartment in any co-operative society handy. If it’s a plot of land, then you need a record of the property card. It’s easy to get a duplicate common account statement from a mutual fund or a depository or a duplicate bank passbook. But to get a duplicate home buyer agreement is a time-consuming exercise.
Kayezad E Adajania heads the personal finance bureau at Moneycontrol. He has been covering mutual funds and personal finance for the past two decades, having worked in Mint and Outlook Money magazine. Kayezad was the founding member of Mint’s personal finance team when it was set up in 2009.
