I share with my spouse (and soon, my son too), something called a Financial Toolkit at the end of every year. This kit will contain everything they need to know about our family finances in case I am not alive. But before we talk about the KIT and its contents, there is something for all of you to action.
Update Nominee details in all your accounts, Mutual funds, Insurances or deposits – ANY financial instrument should have nominations.
My Financial ToolKit contains the below details readily available for my nominee –
- All bank account details and their approximate balances
- Equity and Mutual fund investments
- Insurance coverage and details – Health/Home/Life
- Any other investments
- Bank passbook
- Nomination details
I call this the financial toolkit of your family. Personally, I use a shared google docs for sharing this information with my wife. At the end of the year, I take a printout of this sheet and put this in a safe place at home.
If you love someone, make them independent. Be it your partner, your son or your daughter. Independence and Empowerment is the RIGHT way to express true love. This is true especially in handling the finances of your family.
If possible, writing a WILL and keeping it available is not a bad idea as well. Also sharing this with a close confidante is a nice idea.
I already ‘did’ this long back…thanks to you. But haven’t been reviewing and updating it regularly. This is another learning for me…thanks again Gopal
Very happy to note that Karthik, thanks 🙂