Suspending or settling/closing your accounts is not as easy as you think. Do you have an inventory of all of your accounts in your advanced planning documents? If not, you could cause your loved ones a lot of stress.

Recently, the media has covered the need to share with your loved ones your online social account access, i.e., Facebook, Pinterest, Instagram, LinkedIn, etc., so they can manage them and communicate with your connections when you cannot or upon your death. However, the media has not mentioned the need to also inventory more traditional accounts that are not merely banking, investment or insurance, both online and offline.

When I speak with people who are handling a loved one’s illness or death, they often share stories of how difficult it was to track down a variety of account types for suspension or cancellation. Examples of these more traditional accounts and auto-renew subscriptions include:

• social security and/or disability benefits
• automatic payments from a checking or savings account for items such as: credit card payments, utilities (electricity, gas, water, home oil), tele (wireless, home service), Internet access, home-owners association, cleaning or yard service, nursing home, etc.
• credit cards, especially store-branded (e.g., Macys) and affinity cards (e.g., university) which may not have been used frequently
• newspaper and magazine subscriptions, often set to auto-renewal on credit cards, both delivery and online access
• monthly charitable contributions to public radio or television
• cloud-based software/service, e.g., MS Office, Adobe, virus protection like Norton 360, online storage like Google Drive, etc.
• children’s activities and sport

Think about the number of accounts you have that may draw from or deposit to one of your credit card, bank or investment accounts.

If one dies intestate (without a will), all of accounts need to be settled and closed prior to completing probate. That’s one of the reasons why probate takes so long. Months and months before assets are distributed, potentially leaving a spouse without a financial means of support. Taking inventory of all accounts is critical, even for those who have their basic advanced planning complete: will and advanced healthcare directive.

A gentleman who shared his story told me that it took him more than two years to find then settle of his mother-in-law’s accounts. And she did believe that she and her estate planner had covered everything in advance.

Your children will not automatically be cared for by your close relative. A common misconception is that during an emergency, your children may be cared for by your family or close friends. The truth is your choice of your children’s guardian needs to be legally documented or the court may appoint someone who would not be your choice. Establishing legal guardianship for your children serves more than one purpose. Yes, it would protect your minor child(ren) if all legal parents die. However, it could also protect your child(ren) if all legal parents become incapacitated, physically or mentally ill.

According to a national survey, 80% of parents of minor children have not established legal guardianship. A scary fact. Many of my friends—highly educated professionals—fall into this camp. Why? Anecdotally:

1. Have false comfort knowing that rarely do both parents travel (think: distance travel) without the children
2. Incorrectly assume their informal agreement with grandparents or siblings will suffice
3. Want to avoid argument with spouse over who the guardian(s) should be

The fact is most family tragedies occur in a car, close to home. And, if you fear family arguments and resentments while you are coherent, imagine how they would play out if you were seriously injured or deceased. Though a court still needs to approve your guardian choice(s), they usually do. In absence of legally recording your choices, the court may hear claims from family, close friends or appoint someone else who seems more suitable. In other words, you child(ren) could wind up anywhere.

You can choose different guardians for different purposes. Legally, there are two types of guardians for minor children. In layman’s terms:

1. Guardian of the person: this is the substitute parent.
2. Guardian of the estate: this is the person who manages the minor’s assets.

Either or both of these can be established as short-term or long-term arrangements. For example, short-term guardianship while the parent is in the hospital. Or if all legal parents are deceased but the permanent guardians live far away, the child may need a local short-term guardian.

It is also important to review your choice of guardians regularly. Your chosen guardian’s situation may change: have more children, divorce, change lifestyle or residential location. Further, your relationship to your choice may change.

Quiz: A useful worksheet for choosing guardians.