Financial Record Keeping For Your Family

Life is very unpredictable and many aspects of the future are beyond our control. However, you can take a few precautions to limit the impact of unforeseen situations on the life of your loved ones. In case of accident, if you get injured (or dead), it is extremely necessary for your family to have complete and detailed information of your finances.

Here is a plan to keep your financial records handy for your family and make your loved ones emergency-ready.

  1. Prepare a list:

Jot down your all-inclusive emergency list which should contain information about the important documents and where they have been kept.2.

You can include information like location of Safety deposit box key, Birth certificate, Bank accounts’ details, Credit and debit cards, Investment details and relevant information. Don’t forget to mention the places where you have kept Home/Property deeds, Income tax returns, life insurance policies, and such important documents.  It is advisable to have a safety locker in the bank, so all the documents can be found at one place itself.

  1. Organizing financial information

Informing your family where you have kept all financial documents is just first half of the story. It is equally important to keep the information is kept systematically in an organized manner. Understanding finance is quite a tough job. If all the documents are properly filed, then only your family will be able to understand it correctly. Arrange your documents chronologically or alphabetically. Keep all relevant information in one file. Eg. The file of income tax returns should also have the information of your CA, so your family can contact him/her, in case of any confusion.3

If possible, scan all your important documents and name them properly. Segregate these documents in appropriate folders and save them on your email and hard drive.

  1. Handing over the information

You should hand over your financial information in a very right manner and to a right person. It could cost you a lot if the wrong person gets access to your financial information. You can hand over the list to a third party like attorney or trust.

No one likes mishaps in the life, but they do happen sometimes. All we can do is be prepared and ensure that our family is able to overcome such situations and live a happy life. Making this emergency list is a first step in ensuring that our family can handle finances strongly even in our absence. So, start maintaining your proper financial records today.


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