How to Put Together a Disaster Recovery Document Kit for your Estate Plan

The 2005 hurricane season caused many people to focus on an issue that had seemed remote. But millions of people realize they are more vulnerable to disasters than they had thought.

A surprise to many people is that the potential damage to their persons and property is not the only concern. Personal information and documents are keys to recovering from a disaster. The more information and documents you lose, the longer and more difficult the recovery becomes.

Your estate plan should include a disaster recovery plan. If you live in an area vulnerable to natural disasters such as hurricanes, earthquakes, and tornadoes, a recovery plan is essential. But you also need a plan to recover from more localized events, such as a fire. You need a plan for personal items and one for your business or work items.

Most discussions of disaster, survival and recovery plans focus on the physical aspects. They cover issues such as escape routes, food, water, and medical supplies. Those are important to surviving the disaster. But if you want to speed recovery after surviving the disaster, your plan needs another element. You need to preserve the information and items that will help you after the physical danger has passed.

There are several ways to secure the personal information needed for the recovery plan. The information could be placed in a portable, waterproof, fireproof, lightweight container that can be taken with you. The information might be in the same container with food and other supplies or in a separate container.

An option is to have all the information stored in a separate area ahead of time. This area should be one that is expected to be safe from any disaster that might strike your home or business and one that you will have access to within a reasonable time after the disaster. Some people store the information with a relative or friend who lives in another part of the country. Businesses with multiple locations might be able to spread the information around those locations. Some people rent a safe deposit box or personal storage space in another location.

Digital storage also is an option. Documents and information can be kept on portable storage devices (CD-ROMs, key drives, etc.) to be carried; uploaded to remote servers or to services created for this purpose; or sent in a digital format to trusted people in other areas of the country for safekeeping. Retaining the information on your desktop computer or even a laptop is not sufficient. A disaster could strike when you are away from the machine and unable to save it from destruction. Or you might not be able to take the computer with you when escaping.

When selecting a format or formats, keep in mind that the information must survive a disaster and be accessible to you and your loved ones once the main danger has passed.

Once the means of safekeeping is determined, assemble the information to be stored. The information to be stored should include the following:

• Personal contact directory 
• Copies of the important family records: birth and marriage certificates, passports, medical insurance cards, and drivers’ licenses or other ID cards. 
• Financial account information, such as bank accounts, brokerage and mutual fund accounts, mortgages, and credit cards. At a minimum you need account numbers, telephone numbers, any passwords, and the title on the account (individual, joint tenancy, corporate, etc.). 
• Insurance information, including the insurer, contact number, and policy number. A copy of the policies is helpful but probably not essential. Related to this is a detailed inventory of your personal possessions so that insurance claims can be filed. The more detail the better, including model names, serial numbers, purchase date, price, receipts or cancelled checks, and appraisals if appropriate. Photos or videos also are helpful. 
• Medical history, the more complete the better. The best bet is to have complete records stored safely, using a service such as MedeFile (www.medefile.com). At a minimum for each family member you need blood types, allergies, medications being taken, chronic conditions, and medical history. This information should be readily available in case emergency care is needed. 
• Powers of attorney. In case something happens to you or a family member, someone needs to make medical and financial decisions. Ideally, copies of the appropriate powers of attorney are kept at several locations so at least one will be accessible under different circumstances. 
• Wills and other estate planning documents. 
• Tax returns for the last three years. 

Compiling this information in a format that can be secured is a lot of work. After putting the recovery kit together, it is just as important to keep it updated. It should be reviewed and updated at least annually. Some items, such as medical records, might need to be updated more frequently.

In the aftermath of Hurricane Katrina, the IRS and various financial institutions were cooperative. They waived deadlines and due dates, among other measures. But eventually they have to return to business as usual and expect you to be able to. In addition, it is difficult to get help without the right information. It is best to assume that third parties who keep some of your information (such as medical offices) might be struck by the same disaster and lose their copies of your records. The burden will be on you to provide the information others need to help get you back on your feet.