I’m sure there are some relationships where the responsibility for the finances is shared 50/50, but the reality for most is that there is a significant imbalance.

One partner will often take the responsibility of looking after the finances, while the other partner takes a bit of a back seat in that department.

If someone isn’t interested in finances then no harm no foul, right?

Not exactly.

What happens if the financially savvy one in the relationship passes away?

Not only will you be left with the devastating situation, but you will also have the added stress of not knowing where you have money, or even how to access it! This is an added level of stress that cannot be underestimated.

In my marriage, I am the one that manages the finances with regards to investments and savings and I would hate to leave my wife in the situation of not knowing what to do. A couple of years ago I started a document that includes all the important information that will mean one less thing to worry about for my wife. That helps me sleep better and the peace of mind is priceless.

What do I include in a financial document for my loved ones?

Everyone’s financial setup is different so not all will apply, but below is what is in the document I intend to leave my wife:

• The different accounts where we keep our money

• A description of what each account is used for and why.

• A list of each account number, username and password.

• A list of all direct debits and automatic payments.

• Instructions on whether I think any of these direct debits or automatic payments should be cancelled upon my passing due to reduced income and unable to keep up investing at the same pace.

• Contact numbers for each of the direct debit/automatic payment accounts. Along with an instruction to contact these and let them know the change in contact.

• How much is currently in each account

• Descriptions of how much is automatically invested each week, month or year.

• Descriptions of how to access each account

• Descriptions of how to withdraw cash from each account

• Descriptions of what order to withdraw the funds. For example, defensive assets first, growth assets later.

• Other important information, such as our daughters IRD number

• Names and phone numbers of important contacts, such as insurance company, my employer, my manager at the volunteer budget centre, Accountant

• The information for a trusted financial adviser. If all this is overwhelming, then my wife knows she can always contact this adviser and be given a good plan.

• Usernames and logins for accounts such as email, Facebook, utility companies and investment accounts.

Final Thoughts

It is 10 pages long and I update this document once a year at the end of the year with amended information.

Sure, it takes a bit of time up front to complete. But it is a great gift you can leave to your loved one.

Doing this document also opened up some money discussions between me and my wife and she is now much more clued in to where our money is and what our financial plan is. This has been a great benefit of talking about this stuff and I am extremely confident she will be OK now.

You won’t know the benefit of having a document like this until you have seen someone go through the pain of having to deal with this stuff on their own.

Keep it somewhere safe.

It’s exciting to always think about earning money and investments, but don’t neglect the often underestimated benefits of asset protection and succession planning. Boring yes. But also vital.

The information contained on this site is the opinion of the individual author(s) based on their personal opinions, observation, research, and years of experience. The information offered by this website is general education only and is not meant to be taken as individualised financial advice, legal advice, tax advice, or any other kind of advice. You can read more of my disclaimer here

Do you have anything like this for your significant other or do you both share the financial load?