I was quoted in Investment Executive last week in a retirement and downsizing article entitled, Take a Load Off. I highlighted some practical steps retirees can use to organize their estate. It will reduce the burden on their executors after they have passed on.
On Purging Possessions…
One challenge is that “…the valuation system someone has placed on their possessions. Just because they’ve spent the money on something, just because it’s barely used, [doesn’t mean it’s] new and useful to somebody else.”
Lifestyles are different now. Younger generations often don’t want furniture that older generations value. Advances in technology mean that those old VHS tapes, DVDs, CDs, and record albums often end up in the waste stream (Out of Chaos sells, donates and recycles what it can) because no one wants them.
However, family members and friends may want something they consider special – a memento of good times spent together. Having a downsizing or “house-cooling” party (opposite of a housewarming party) allows people to gather together, reminisce and take the items that are significant to them.
On Paperwork Pitfalls…
Clients often ask the Out of Chaos team to watch for vital paperwork (wills, insurance documents, etc.) when we are helping clients downsize. Having an organized filing cabinet is important. Your power of attorney, executor, and certain family members should know where you keep essential documents and how to access them.
It isn’t just paperwork nowadays. An executor needs to access online accounts too!
“[Passwords are] becoming hugely problematic in estates,” Chu said. “And it’s not just the passwords. It’s [also] those secret questions, such as ‘the name of your first dog’ [or] ‘your favourite teacher’s name.’ Sometimes there’s that second level of authentication that’s needed. If a client does plan to share passwords, Chu advised starting now, “while one is mentally capable of doing so.”
I suggest that clients take the time to declutter their computers and, if comfortable with technology, use a password manager. Otherwise, use a notebook to record login credentials and store it in a locked filing cabinet.
Downsizing can seem overwhelming, but not if you have a professional organizer to help you take a load off. Contact the Out of Chaos team today and ask about our Stress-Free™ downsizing and move management services.