Nick Bruining: Your essential guide to sorting out your estate to make it easier for loved ones left behind

Setting things up so those you leave behind don’t have to deal with a “dog’s breakfast” goes further than simply getting the documentation in place.

Independent financial planner Sandra Carr says beyond the legal documents critical to effective estate planning, there are a few simple things anyone can do to minimise the stress for those left behind.

“Let’s not forget that in most cases, they’re already dealing with the grief of losing you, and leaving a paperwork mess only drags things out,” Ms Carr said.

Identifying assets, debts, and getting basic information about someone’s finances can sometimes take months. This inevitably delays the distribution of the estate to your loved ones.

Your Money has compiled a simple list of things to do.

With much of our lives now embedded in the digital universe, critical information can be locked away in cyberspace, inaccessible because no one can guess your password.

If you have saved passwords on the computer, your internet browsers will probably allow you to export your website logins and associated passwords. From there, you can save them on a $15 thumb drive from Officeworks, or print them out to be stored securely with other critical documents.

Next, ensure the details of all your investments are in one place. It might be a simple spreadsheet saved on the thumb drive or listed in an exercise book or sheet of paper, all stored in a safe, secure place.

“Make sure you list the investment details including BSB and account numbers, contact information like the website or contact person’s name, and the log-in details to access information online,” Ms Carr says. “Also include PIN numbers for phones and ATM cards.”

One extremely important thing to remember, even if you have a valid enduring power of attorney in place, is that at the moment of death, that authority ends.

Making any changes to any aspect of the deceased’s affairs is illegal, unless you are the executor of the estate, and probate has been granted by the Supreme Court. There are a few exceptions, like accessing money to pay for funerals, but beyond that you could find yourself in big trouble.

Make sure your EPA “donee” understands the rules.

The record of your investments or thumb drive should be put into a clearly marked envelope along with rarely accessed documents such as title deeds, birth certificates and the password list, if separate.

If you’ve already planned your funeral or have special requests to include, let those who will be arranging your send-off know the details and where to find the book.

Start your “chuck-out-the-junk” process now, and set aside and document those family heirlooms and other things that need to be kept.

Arguably the No.1 grizzle of kids dealing with a parent’s estate is separating the junk from the family treasures. Doing that now might prove to be the greatest gift you can give them — an estate that’s simple to administer.

“Finally, if you have super funds either in accumulation or pension phase, make sure you have completed a non-lapsing binding death benefit nomination for each fund,” Ms Carr says.

Nick Bruining is an independent financial adviser and a member of the Certified Independent Financial Advisers Association