Planning for my death

[Jeff N.]

Yesterday I was cleaning out my office and I realized that I hold the only key to my business accounting and operations. I started wondering how my wife or someone else would figure out my investments in the event I die prematurely. Taxes, HOA dues, tenants, mortgages, PM's, LLC's, etc, would be nearly impossible for my wife to figure out on her own.

How do you organize your business in the event a guy driving drunk back from the bar decides to end your life early?

[Bill Gulley]

Well, that's something many don't think about until they are much older, but smart!

Another good reason to do your books in accordance with GAAP, in good accounting form. Any accountant can run throght your books and see exactly what's up.

Getting organized generally makes running your business easier and will assist others in the event you can't be there for any reason.

I'm old school, so my business was in folders.

I suggest you file by category, lease agreements, RE contracts closed, RE Contract Offers, Etc.

My properties were in folders. I used folders with those metal prongs at the top, (your bank uses them as loan folders).

On the left side was property information or related files to closing. Bottom to top was the copies of contracts to purchase, appraisal, insurance binder, inspection reports, telephone and misc. notes, copies of receipts for acquisition, HUD-1.

Right side bottom to top, tax assessments, insurance policies, tax and insurance receipts, repair maintenance receipts (if extensive, a seperate folder, with an identifying page listing associated folders, like utilities) Utility agreement (landlord agreements) and on top the current lease.

On the outside of the folder the property address, legal description, tax ID number, Insurance company and phone number of agent.

Anyway, different categories were filed in alpha order first, then in numeric order. This is the military system and was adopted by many large corps such as Sears for their filing system.

Regardless of how you do it, be consistant so that anyone can see how it's done and they can catch on easily to find something.

With computerized files, life is easier, but you still need hard copies, IMO.

Important docs, deeds, notes, important agreements, are kept in a safe deposit box with copies in the office. My notes and deeds and original property files were in a basement vault.

Backup files.

Keys are another issue, I had keys numbered (so if they were lost no one knew what they went to) and then a key register in my office locked up.

Those who need to know where things are, like the key to the office, key register, file cabinet locks/keys, phone book of important numbers, etc. were told how to find it all.

Just get organized and tell those who need to know.