Building an “in case I die” file is an important part of preparing your family or your business for what happens when you pass on.
Years ago, I started thinking about this uncomfortable question:
What would happen to my business if I died?
Freelancing is different from having a traditional job. No HR department can shut down your accounts. No manager knows which projects you're working on. And no coworker can step in and explain everything to your clients.
For many of us, the business lives largely in our heads. We know which client is late paying, which subscriptions are business expenses, and where contracts are stored. We know which subscriptions are business expenses.
Our families probably don't.
That's why it can make sense to create an “in case I die” file for your freelance business.
It's a roadmap for the person who would have to deal with your business if you died or became unable to manage it yourself.
1. Start with a one-page business overview
Imagine someone who knows almost nothing about your business suddenly needs to manage it.
What would they need to know first?
Create a simple overview explaining what your business does and how it's structured.
Include information such as:
- Your legal business name and any DBA
- Whether you're a sole proprietor, LLC, S corporation, or another entity
- Employer identification number, if applicable
- Where your formation documents are located
- Your business mailing address
- Your main website and domain names
- Where you bank
- Where your accounting records are stored
Include a short explanation of how the business makes money.
It doesn't have to be complicated. Something like, “I write for six regular clients and invoice them through my accounting software,” is useful information to someone who has never been involved in your business.
2. Identify the people who can help
Create a list of people who understand different parts of your financial and professional life.
That might include your:
- Accountant or tax preparer
- Estate-planning attorney
- Financial planner
- Insurance agent
- Bookkeeper
- Business attorney
- Business partner
- Virtual assistant
- Trusted fellow freelancer
Include their contact information and briefly explain why someone might need to contact them.
For example:
Jane Smith, CPA: Handles my business and personal tax returns.
That's much more helpful than leaving behind a contact named “Jane” and hoping someone figures out who she is.
3. Create a current client list
For many freelancers, client relationships are one of the most urgent issues after a death.
Someone needs to know who to contact.
Your client list might include:
- Client or company name
- Primary contact
- Email address
- Current project
- Upcoming deadline
- Contract location
- Payment terms
- Whether you've received an advance or deposit
- Whether the client owes you money
You don't have to maintain a perfect real-time database. Tell your executor where your project-management or accounting records are located and maintain enough information to help them understand what they're looking at.
It's also worth identifying one trusted colleague who understands your industry. That person might be able to help your family determine which clients need immediate attention.
4. Explain where the money is
Money can become surprisingly difficult to track when a freelancer dies. One client may pay by direct deposit. Another uses PayPal. Someone else mails checks. You might also have affiliate income, royalties, advertising revenue, or payments from digital products.
Document where business income normally arrives.
Include your:
- Business checking and savings accounts
- Business credit cards
- Payment processors
- Invoicing system
- Accounting software
- Merchant accounts
- Affiliate platforms
- Royalty accounts
Don't put account passwords directly into an unsecured document. Instead, explain where the appropriate access information is and make sure your estate plan gives the right person authority to manage your financial and digital accounts.
5. List money you're owed
If you're a freelancer, there's a decent chance someone owes you money right now. An invoice might not be due for another 30 days. Maybe you've completed a project but haven't invoiced for it yet. Those receivables can be assets of your business or estate.
Your emergency file should explain how someone can determine:
- Which invoices are outstanding
- Which completed projects haven't been invoiced
- When payments are expected
- Where payments normally arrive
- Who to contact about unpaid invoices
This is one of those situations where good bookkeeping isn't just about making tax season easier. It's about making sure your family can find money that's rightfully owed to you.
6. Make a list of recurring business expenses
Freelancers can accumulate an impressive number of subscriptions. Website hosting. Email marketing. Cloud storage. Accounting software. Design programs. Professional memberships. Domain registrations. AI tools. Project-management software. Ten dollars here and $30 there can add up to hundreds of dollars leaving your accounts every month.
Create a list of recurring expenses and identify which ones you should probably cancel if you're no longer running the business. Pay particular attention to annual expenses. Your family might not notice a $300 software subscription until it automatically renews eight months after you die.
7. Create a digital asset map
You probably shouldn't print a spreadsheet containing every username and password you own and label it IMPORTANT PASSWORDS. You should, however, make sure someone knows where your digital business exists.
Your digital asset map might identify your:
- Business email
- Website
- Domain registrar
- Web host
- Cloud storage
- Social media accounts
- Newsletter platform
- Payment platforms
- Accounting software
- Client portals
- Online stores
- Digital products
A password manager with emergency-access or legacy features can support this strategy.
Also consider the legal side of digital access. Having a password and having legal authority to access an account aren't necessarily the same thing. Ask your estate-planning attorney whether your documents provide appropriate authority for your fiduciary to manage digital assets.
8. Document your intellectual property
If you're a writer, designer, photographer, developer, course creator, podcaster, or other creative professional, you may own intellectual property with continuing value.
That could include:
- Copyrights
- Books
- Photos
- Courses
- Templates
- Software
- Videos
- Podcasts
- Newsletter archives
- Website content
- Licensing agreements
Some of those assets could continue generating revenue after your death. Explain what you own, where the relevant contracts are located, and whether you receive royalties or licensing payments. Your estate-planning documents can address who inherits those rights.
9. Explain what should happen to your website
Don't assume someone will know what you want done with your website. If you have a substantial archive of content, the site itself could have financial or sentimental value. Maybe you want it maintained, especially if it generates enough affiliate or advertising income that keeping it online makes financial sense.
Perhaps you'd rather have the website sold. Or maybe you simply want your family to preserve the content while allowing the domain to eventually expire. You should also identify your domain registrar and hosting company so someone can prevent the site from accidentally disappearing before a decision is made.
10. Leave instructions for unfinished projects
This is particularly important if clients pay deposits or retainers. Explain where someone can find information about current assignments and contracts. If possible, identify another freelancer who could help evaluate unfinished projects.
In some cases, you stipulate a deposit refund to a client, while in other cases, the client might owe your estate money for work you've already completed. Contracts can determine what happens, so your executor may need professional advice before making decisions.
The important thing is making sure someone knows the projects exist.
11. Include your business debts and obligations
Make a list of major business liabilities, including:
- Business loans
- Credit cards
- Lines of credit
- Equipment financing
- Outstanding vendor bills
- Contractor payments
- Taxes
- Personally guaranteed business debt
Include information about where loan documents and other records are stored. Your executor and attorney can determine how those obligations should be handled.
12. Write down what you actually want
After documenting everything else, provide some basic instructions.
Do you want someone to close the business?
Sell certain assets?
Keep the website running?
Refer clients to another freelancer?
Continue collecting royalties?
Preserve your writing or creative work?
Your instructions don't replace a will, trust, operating agreement, or other legal documents. Those documents should govern the legal disposition of your assets.
But your emergency file can explain your preferences and help someone understand what you were trying to accomplish.
Where should you keep your “in case I die” file?
The file needs to be secure and easy to find. That's a tricky combination. You don't want sensitive business and financial information sitting in an unsecured Google Doc. But there's no point creating an elaborate encrypted archive if no one knows it exists or how to access it.
Depending on your situation, you might keep information in:
- A secure digital vault
- A password manager
- An encrypted drive
- A fire-resistant home safe
- Secure storage provided by an attorney or estate-planning service
You can also separate information. For example, your emergency document might identify your bank without including an account number. Login credentials might remain inside your password manager. Your attorney might have copies of important estate documents.
Tell someone the file exists
This might be the most important step. Tell your spouse, executor, adult child, business partner, or another trusted person that you've created an emergency business file. Explain where it is and how they can access it if necessary. You might also identify a trusted professional or fellow freelancer they should contact first.
Next, put a reminder on your calendar to review the file once or twice a year. You don't need to update every minor detail. Focus on major changes such as new bank accounts, major clients, business loans, new websites, changes in business structure, or different professional advisers.
Don't forget disability and incapacity
There's one more reason to create this file that has nothing to do with dying. You might still be alive but temporarily unable to manage your business. An accident, illness, or other emergency could leave you unable to respond to clients or access your accounts for weeks or months. A good emergency file can help someone step in and manage urgent matters while you recover.
That's also why your estate planning shouldn't stop with a will. Consider whether you have appropriate powers of attorney and other documents that allow someone you trust to act for you if you're incapacitated.
Your freelance business needs an emergency plan
We spend years building our freelance businesses around ourselves. That's often one of the best things about self-employment. You get to build a career around your skills, interests, schedule, and priorities.
But it also creates a single point of failure: You.
Creating an “in case I die” file doesn't take weeks. Start with one document. Write down your accounts, clients, professional contacts, major obligations, and where someone can find everything else. Gradually improve it.
Hopefully, no one needs it for a very long time. But if they do, you've given the people you care about something incredibly valuable: a place to start.
