One of the key components of an Estate Plan is storing the original documents where they can be found and retrieved when needed. For Probate, an original Will is necessary and you may find you need an original Power of Attorney for some transactions. So, where do you store such important documents? Many clients prefer to put them in a Safe Deposit Box. Any such box is secure, watched over, fire and flood proof, and won’t be lost in a move or forgotten about. However, there are some concerns with using a safe deposit box. Primarily, you (and a spouse) will likely be the only people who have access to the box. While this is fine during your lifetimes after you pass it can become a real issue for your children or anyone who is trying to probate your estate. Safe deposit boxes don’t have beneficiary designations. There is no way to “leave” a box to someone. If your Will is in your safe deposit box and the probate process cannot begin until the Will is submitted to the court, the box is a hindrance to the process rather than being a helpful and secure storage location. Additionally, a home safe presents the same problem. Someone other than you must have the password or combination to access the safe if something happened to you.
One potential solution for storage that allows you to use your safe deposit box is to add someone to the box now, but that means that they have immediate rights and access to it. While you may trust the child or other person you name, it’s your property and you don’t necessarily want someone else being able to simply drop in and access the box without your knowledge whenever they desire. However, some banks have a two-step process for accessing a box: 1. They must be named on the box, and 2. They generally need a key. Therefore, if you name an additional person on the box, but do not provide them a key, the person can access the box at your passing but not before. A second option is putting the box in the name of your trust if the bank allows. Some banks will allow a trust to own a safe deposit box, which allows the current Trustee of any such trust to access the box. While you are living, you are generally the Trustee and only you can access the box, but when you pass your successor Trustee automatically steps in and has authority to access the box. If you do not name someone on your box and do not have a trust own your box, then your Executor or family member will need to submit a Petition to Enter Safe Deposit Box for them to access the box and get the Will out. The Petition allows the petitioning person to enter the box, and if a Will is found then the financial institution must deliver it to the probate court. Any insurance policies found in the box pass directly to the named beneficiary in the document and the petitioner may take any burial instructions or deed to a burial plot. Everything else must remain in the box until the probate process begins. For an at-home safe, keep the combination somewhere secure and somewhere that the person you trust would only look if something happened to you.
Both at home safes and a safe deposit box can be great options for secure storage of your estate plan originals, provided you plan carefully for third party access. At Grissom Law, LLC we offer to store our clients’ estate plans in our fire-proof safe free of charge. Our estate plan binders also include pages to store information like a safe combination, and no one would need to see the binder until an appropriate time. We value our clients’ privacy and security when it comes to their estate plans. Call us to discuss your needs and we’ll work through the considerations such as storage of your documents as part of the process.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.