Preparing for your own death or the death of a loved one
Financial relationships - contracts, commitments, passwords
The aim of the following is to ensure that a person’s property and personal affairs are looked after in accordance with their wishes after their death. Drawing up an inventory of assets and liabilities can help ease the burden on family and loved ones and ensure that the deceased’s assets and liabilities are taken care of in accordance with their wishes and requirements. This is one way to help loved ones simplify the inheritance process and focus on grieving.
Outlining responsibilities will help family and loved ones understand what their obligations are in relation to the deceased's financial affairs. This is particularly important if the deceased was the main provider of the family’s financial well-being.
Having a list of assets, debts and liabilities will help the family and loved ones to better manage the deceased’s debts and liabilities. They will thus know exactly which bills need to be paid and which contracts need to be fulfilled.
Important to know concerning this step
Testament: With a will, the bequeather can decide who will inherit their assets and liabilities after death. If, at the time of the deceased’s death, there is no valid will and the deceased has not concluded a succession contract, the inheritance shall be settled in accordance with the procedure laid down in the Law of Succession Act.
Methods of inheritance: Talk to experts to find out the nuances of inheriting private and business assets, for example, and then make an informed choice.
List of digital assets: Make a list of all your digital accounts, including email, social media, bank accounts, digital books, music and video downloads, crypto assets, digital art, and more.
Password management and access to accounts: Use a trusted password management tool (such as a password manager) to store all your passwords. Share access to the password manager with a trusted person (figure out how they can access your passwords, if necessary). Do not share passwords via email or text messages. You can give a trusted person access to your digital accounts by giving them a username and password. If your environment allows it, you can use digital asset management services, which allow you to designate a contact person who can access your digital assets when needed.
Social media accounts: Specify whether loved ones should close the account after the user’s death or turn it into a memorial account, for example (if the environment allows it).
Overview of contracts and commitments: Make a detailed list of all your commitments and contracts so that loved ones know what your financial commitments, loans, contracts and other important obligations are, as this will help reduce confusion and uncertainty among family members and loved ones who will later have to deal with the deceased's assets and financial affairs.
Set up automatic billing: Make sure that your monthly bills (e.g. bank loans, electricity, Internet) are set to automatic payment. This will ensure that your financial commitments are not missed.
Notary: Consider using a notary to formally authorise a trusted person to administer your assets, should this prove necessary. This may include the drawing up of a notarised will.
These are some of the steps to pay attention to. The list is not necessarily exhaustive. Being prepared will help ensure that your assets and digital data are kept safe and that your loved ones can act on your wishes, if necessary.
Read also about contracts and how to sign them.
References
Contacts
Information service texts on the death of a loved one were completed under the guidance of the Association of Estonian Cities and Rural Municipalities.