Don't Add Confusion to Your Survivors' Grief

The death of Michael Jackson, and the initial confusion over his will, got me to thinking: My husband and I are long overdue for updating ours.

Along with the updated will, we need to attach what professionals call a "letter of instruction," a document that tells your loved ones what to do in case you die.

Jackson left behind three young children and a lot of debt, but also assets that may increase in value because of his death.

There was some doubt as to whether Jackson had a will. His mother, Katherine Jackson, asked a judge to appoint her executor of her son's estate. But it turned out he did have a will naming his attorney and a longtime friend as executors of the Michael Jackson Family Trust.

Had Jackson communicated his last wishes better, there would not have been such confusion. His 79-year-old mother could have avoided having to go to court at a time when she was mourning her great loss.

So let me ask you, who knows where to find your important documents in the event of your death? Will your relatives have to ransack your house to find your will, bank statements and retirement accounts? Will your death create chaos about your financial holdings?

Will your relatives have to worry about how to pay for the funeral because they can't find your life insurance policy?

For most of us, our estates won't be nearly as complicated or large as Jackson's. Our estates are pretty simple. Nonetheless, you need to leave instructions of where to find the documents that leave a trail of your holdings.

A letter of instruction includes the names of those who should be contacted in the event of your death and the whereabouts of all your essential documents, plus guardianship instructions should you still have underage children.

If you keep your letter on your computer, be sure to print a copy or save it to a CD or flash drive in case your computer can't be accessed. And please, don't be afraid to share the whereabouts of the letter with someone who has proved trustworthy -- a relative, friend, attorney or the executor of your estate -- because it is of little use if no one knows of its existence. You keep the letter. Just let someone know where you put it.

You should consider the letter of instruction as a master list, detailing where you keep your financial documents. For example, write down that your will is in a lock box or safe-deposit box.

What should be in this letter? In addition to directions about your will and any trust documents, the letter should include any information about, and the location of, the following: