Going on vacation is super exciting, but there are a few important things to take care of before you go.
Here are 10 things you MUST do to ensure your trip is smooth and worry-free:
1. Purchase Travel Medical Insurance
If you are going on vacation internationally or going on a cruise, make sure you have travel medical insurance. There are lots of options online and it is relatively inexpensive.
Tip:
Look for coverage that includes emergency medical evacuation and pick a plan that covers at least $250,000 – $500,000 if not more. Choose an end date slightly longer than your stay to cover any unexpected delays.
2. Purchase Repatriation Insurance
Repatriation insurance covers the cost of transporting your body back home if something happens to you. It usually costs less than $500 and is valid for a lifetime of travel. Without it, transporting your body back home from another state or country can cost thousands of dollars ($10,000-$15,000 from Mexico or Europe for example).
It also involves a lot of paperwork and red-tape which can lead to needless delays, overwhelm, and frustration. This insurance covers those costs and makes the process much easier. Indeed, many of these plans come with a hotline that your loved ones can call to reach a concierge that handles all of the details for them.
3. Create or Review Your Estate Plan
Check your estate plan before you leave for vacation. Make sure you have updated versions of the following:
- Power of Attorney
- Healthcare Directive (to include a living will with end-of-life wishes)
- A Will and Trust (yes, most Californians need both)
- Plans for digital assets and cryptocurrency (these are often missed)
- Guardians for minor children (designated separately from any will)
- Caretakers for pets
Remember:
If you have these legal documents in place it is important to review them to ensure they are updated and current with your wishes and the state of the law. It’s easy to forget some of the choices we made in creating our estate plans, and those wishes may be outdated due to the death or aging of certain decision-makers, family dynamics, broken relationships, people moving away, our viewpoints, or other life circumstances.
In addition, laws or policies change frequently and may impact your planning without you realizing it. For example, “stale signatures” are a real problem as many banks do not recognize POA’s with signatures more than two years old! So if you have one that is older than that, you at the very least should sign a new one.
When to Update Your Planning:
Any easy rule of thumb is that if it has been two or more years since you have had your estate plan reviewed by your estate planning attorney, schedule a review consultation before you leave to see what if anything you need to update.
4. Access to Your Estate Planning Documents
Bring copies of your estate planning documents on your vacation. We are not suggesting to pack your trust or estate plan binder, but bringing a copy of a statutory power of attorney and advance healthcare directive is easy and advisable.
Leverage Digital Tools:
You can also leverage technology and use cloud services such as iCloud, Google, Dropbox or services through Docubank or Everplans to access important legal documents digitally. If you are not comfortable with cloud services, then at a minimum save the documents directly to your smartphone or tablet so that you or someone you are traveling with that knows your passcode (like your spouse) can access your documents.
Other Considerations:
Lastly, when you leave for vacation also leave copies (actual or digital) with your decision-makers. For those decision-makers we advise creating an emergency folder that has all of your important legal, financial, and medical information that would be crucial during a medical emergency or in the aftermath of your death. Some people call this a “red folder” and there are a variety of organizational products such as the NOK Box, Docubank, or the Everplans app that can help you create and share this vital information.
5. List All Your Assets, Policies, Liabilities, and Online Accounts
Make a list of all your assets, policies, debts, and online accounts with account numbers, login credentials (including answers to secret questions) and passwords. This includes passwords for your computer, phone, tablet, email, and social media accounts. Write these down and keep it in a safe place.
You can use some of the organizational tools mentioned above. For passwords, you can be “old school” and write them in a notebook or if you are comfortable you might use an online password aggregator service like Lastpass or Dashlane. Whatever system you use, ensure you inform the appropriate people such as your decision-makers and be clear how they can access the information.
6. Review Your Life Insurance
Check if you have enough life insurance. It might be a good time to add another term policy. Double-check the beneficiary designations on your policies to ensure they are correct. Don’t list minor kids as beneficiaries.
7. Review Your Retirement Accounts
Review your 401(k), IRA, and other retirement accounts. Make sure the beneficiary designations are filled out correctly. Again, don’t list minor kids as beneficiaries.
8. Plan for Your Business
If you have a business, make sure you have a manager or co-manager to handle day-to-day operations while you’re away. Review your business succession plan to ensure everything is clear and established.
9. Create a Legacy Contact or Digital Executor
Set up a “Legacy Contact” on your iPhone or create a Digital Executor. This person can access data on your phone if something happens to you and no one knows your passwords.
10. Give Your Emergency Plans a “Fire Drill” or “Test Drive”
You can do all of the planning we recommend in the preceding steps but it might not work well. As former president Dwight D. Eisenhower famously said, “plans are worthless but planning is everything.” Mike Tyson decades later put his own spin on this when he said, “everyone has a plan until they get punched in the face.”
The point is that even the best and most well-intentioned plans fall apart when implemented in reality. That’s because a human element, variables beyond our control, and chance is largely involved. However, that doesn’t mean not to plan at all. Rather, you should incorporate testing as part of your emergency planning process. Give your plan a fire drill or test drive to stress test your process. Identify any gaps and fix them before you leave.
Bonus Tips:
Contact the U.S. Embassy:
The U.S. Embassy provides travel and legal documents you might need. It’s a good idea to know how to reach them in case of an emergency.
Share Your Itinerary:
Tell someone you know your travel plans so they can check in on you. If you don’t return on time, they can retrace your steps.
Use Apple AirTags:
Buy a few Apple AirTags and put them in your luggage and on yourself. This way, you can be tracked if you get lost.
Inform Your Bank and Credit Cards:
Let your bank and credit card companies know when and where you are going on vacation. This will prevent the inconvenience of being blocked from making purchases with your debit or credit cards which might be essential during an emergency. It will also assist with any fraud as a result of a theft or foul play.
With these steps, you can enjoy your vacation with peace of mind, knowing everything is taken care of back home. Safe travels!
For more information, check out our Youtube video for more insight into our travel tips and tricks.
