We all lead busy lives and taking the time to review the administrative details of our finances can be a headache. We often consider this task unnecessary because it is clear in our own minds where our financial affairs are sitting. However, spare a thought for the person who must pick up these details in the event you can no longer manage them. It has been our experience that even the simplest of tasks can become complex when you are dealing with affairs other than your own.

Whilst professional service firms like ours can help with this financial administration, there is a limit to how much we can do. With privacy and identity theft laws ever tightening, financial advisers and institutions are unable to help you if you can’t provide evidence of your identity and ownership of your assets.

You can make life much easier for yourself and your family by spending some time documenting and organising your personal affairs. Find the source documents where you can and put them in a safe place. Ideally, scan copies of important documents and save them to the cloud or email them to a trusted family member or adviser.

If you do nothing else this spring, spend some time working your way through the following list.

Power of Attorney

Ensure your Power of Attorney (PoA) documentation is up to date. Many of us have our spouse as our PoA, but as we age it might be worth considering adding a child or younger trusted relative to take on this role. To act on a PoA, you will generally need to show a certified copy of the PoA document and a certified copy of the attorney’s identification.

Will

Your Will specifies who you want to receive your assets in the event of your death and allows you to appoint an executor to manage the distribution of your assets in line with your wishes. A Will should be reviewed regularly, but particularly following any major change in personal circumstances (such as marriage, divorce, birth of children or death of a spouse).

Did you know that a Will typically only applies to personally held assets and therefore may not deal with a significant portion of your wealth?

For example, the proceeds from your superannuation and life insurance policies don’t necessarily form part of your estate. They can pass directly to certain beneficiaries, who may have been nominated by you, or go to your estate where they’ll be dealt with by your Will. Note, these nominations can lapse over time, so it is worth checking that you still have a valid nomination in place.

Some assets never form part of an estate, like jointly owned assets or assets held in a discretionary family trust.

Identification and contact details

It’s very difficult to close a bank account or sell shares without valid photo identification. Even when you’ve given up your driver’s licence and passport, it’s useful to obtain a proof of age card from the state government to make identifying yourself much easier.

Similarly, it’s imperative that your name and address are correctly recorded with all your financial providers. Having your maiden name on your superannuation account, or an old address on your share holdings can cause huge headaches and delays when trying to transact.

If you’re moving house, search ‘change of address checklist’ online for dozens of printable lists to help you track who you need to notify.

Bank accounts

Having money spread across multiple bank accounts does not necessarily increase security. The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection for depositors of banks, credit unions and building societies that are incorporated in Australia for deposits up to $250,000 per account holder per institution.

If you have several accounts and are losing track of where your money is going, it may be beneficial to reduce this number. Before closing the surplus accounts, ensure any regular debits and credits are moved to the remaining account. By setting up direct debits for as many regular bills as possible, you can save time and the worry of missing a payment.

myGov account

In recent years it has become almost impossible to interact with Australian Government services such as Centrelink, DVA or Medicare without a myGov account.

Linking your myGov account to the ATO is a great way to keep track of your superannuation. You can view your superannuation account balances, contributions made, contribution limits, search for lost super and request payment of any ATO-held super money.

Superannuation

Whilst there can be very good reasons to have more than one super account, for most people one is all you will need. Having one account will reduce paperwork, fees (potentially) as well as reducing the risk of becoming a lost member. Consolidating your super can be easy to do, but it is important to remember, like most things in life there are some hidden complications. Unfortunately, many of these complications in super are irreversible - such as your eligible service date or combining tax components. You may also have an insurance policy (linked to your super account) that is cancelled as a result of a rollover. As such it is important to check these and other aspects before consolidating. If you are unsure, you should always seek professional advice before hand.

Insurance

As your circumstances change throughout your life, your insurance requirements will change too. It’s important to keep track of your policies and ensure you understand what you are covered for. Understanding the limitations of your cover and when it will pay out can require advice from a suitably qualified and experienced adviser. Having multiple insurance policies doesn’t necessarily mean you can make multiple claims. Insurers often ask for evidence that other policies have been cancelled before they will pay out a claim.

Shares

It’s easy to lose track of your shares over time. The most important detail to keep track of is the SRN or HIN number (usually a 10-digit number starting with an I or an X) that is used to identify you as the owner of a parcel of shares. This number is vital if you want to transact, transfer or sell your shares. This number is usually shown on the original holding statement, but not on the regular dividend statements.

Looking after the future you

Regardless of your stage of life or financial position, it’s important to keep your finances organised and uncluttered. Talk to your partner, children or trusted adviser about your financial situation while you are well; it’s much harder for them to manage these things when you are no longer able.