The hidden risk of being the one who handles the money

If you're the one who manages the family's finances, would your loved ones know where to find everything if you couldn't? An 'in case of emergency' file can help make a difficult time a little easier.

If something happened to you tomorrow, would your family know where everything is?

Not just your Will, but your bank accounts, super, insurance, bills, passwords and the people they would need to call.

For a lot of families, there is one person who tends to know all of this.

That works fine until it doesn't.

An 'in case of emergency' file is simply a way of making sure the important information is all in one place.

Why it matters

I have heard stories of families losing someone suddenly and then having to work out the finances at the worst possible time.

One person in the family had always handled everything.

This person knew the passwords, paid the bills and knew where the investments and insurance were held.

When they were gone, their partner was left trying to piece it all together, while also dealing with the loss.

That is the part people often do not think about.

It is not just the money. It is the stress of not knowing where to start.

And in most cases, this is not because someone was disorganised.

Life just gets busy. We keep putting these things off because they never feel urgent. Until suddenly they are.

What should be in it?

• Your file does not need to be fancy. It could include things such as:
• Your Will and powers of attorney
• Contact details for your accountant, solicitor and financial adviser
• Super and investment details
• Insurance policies
• Loans and regular bills
• Details of important bank accounts
• Instructions for accessing important online accounts.

You do not need to put every password in a folder either. In many cases, it is better to record where passwords are securely stored and how a trusted person can access them if needed.

It can be a physical folder at home or a secure digital file.

The main thing is that someone you trust knows it exists and knows how 
to access it.

Keep it simple

Ask yourself one question: if I could not manage things tomorrow, what would my family need to know? Start with that question and go from there.

You do not need to build the perfect system. Just get the important things together and review it every year or whenever something major changes.

It is also worth making sure your partner or executor actually knows who your key advisers are.

A list of names and phone numbers can be just as useful as a stack of documents.

An 'in case of emergency' file might never be needed. Hopefully it never is.

But if it is, having one could make a very difficult time just a little bit easier for the people you love.

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