The Simplest of Risks Can Compromise Futures

 I seldom mention this but I used to work for a very prominent real estate broker in my city as his executive assistant. I was married in less than a week when I took that job. I spent less than a year in that job before I moved on to another.

The perks of the job is that I get to stay and study a bit of law in my boss's private library full of hardbound law books on many subjects. I also learned and heard many painful and sad stories about real estate assets of landed families in our province in that job.

I hear of landed families living in extreme poverty in their own land that can house a whole town. I read legal documents about large tracts of real estate of formerly landed families being taken over by corporations using questionable documents. Land subject to many conflicts and even very violent ones.

All of this simply because the real owners from several generations back did not leave original documents of their ownership to their next generation.

Imagine that. All that pain, all that conflict, and all that inequity simply because families don't have a copy of a certificate of ownership or title. They could have just kept that document in a sealed folder, put it in a box, and simply told someone in the family about it. A whole generation of their bloodline could have a better life.

The most rudimentary knowledge in file management could have saved many futures.

These simple knowledge as organizing files, records or documents can spell the difference between a secure life and a generation in dire need.

Securing Asset Is Also Securing Information About Them

Since part of my work before was in security years back, I always made sure people understood that security is not just protecting people or physical assets. More than the assets themselves, we need to protect the information or data about those assets.

This information or data is usually embodied in a document. Information or data about a property for example, can come in the form of original certificate of title (OCT), transfer certificate of title (TCT), pre-patents, cadastral surveys, lot plans, technical descriptions, property valuation reports, deeds of sale, extra-judicial settlements, estate tax payment receipts, etc.

On so many occasions heads of families are amazed (or shocked) by the realization that they don't have an inventory of these documents. In most worst case scenarios, they don't even have actual or physical access to these documents. I usually suggest that documents about personal wealth or family assets be kept always in proximity to immediate family members.

Other small (that might be life changing) documents: your last will and testament, bank passbooks, passports, insurance policies, vehicle original certificate of ownership, birth certificates, marriage certificates, transcripts of school records, receipts of premium payments, mortgage documents, contracts, loan documents, permit to possess and carry firearms, training certificates, clearance certificates, and other documents with original versions very difficult to replace if lost.

A Simple Solution to a Generation of Pain

When I was single with jobs mostly in sales and marketing, I kept a black bag, a pilot's bag. Among a few books, this was one of my cherished possessions.

I kept most of my sales and marketing materials there. I also kept my birth certificate, transcript of records, passbook, medical certificates, a business card of an officemate, and other documents in it. I did a lot of traveling in my work. Every time I travel, I leave this black bag to my aunt. I tell her to give it to my mom in case I don't return after a week.

I was living in dangerous times at a young age. I was a bit reckless when I was young. I had a feeling then that if I stayed single, I wouldn't be living very long. I just made sure that I free my mom of the small inconveniences in my demise.

I suggest you do more or less a similar thing. I prefer a pilot's bag because of its size and sturdiness. If you can afford it, buy a safe that is portable. There are models that come with retractable or folding handles. Buy those with combination and armor plating that can withstand fire for at least two to four hours.

Buy a supply of folder size zip lock pouches. Keep these pouches inside the bag or safe. It will come handy when you store individual sets of documents. Don't bunch different sets of documents in one zip lock pouch.

One set of related property documents, one zip lock pouch. Your insurance policy should be in one pouch. Your vehicle ownership in one pouch. Your children's medical/school records and birth certificate can be in one pouch.

Since zip lock pouches are transparent. Label each with a summary of what is inside so you don't have to be constantly opening it just to check what is in each pouch.

Remember those little packets with what seems to be rocks or sand inside when you empty bottles of your vitamins or your medicine. Those are what we call silica gels. Collect them and just dump them inside the bag or safe. It keeps the moisture inside the bag or safe in check. It prevents moisture from forming and prevents growth of molds on the surface of documents.

Know Exactly What You Have and Keep It Close

Start doing inventory of all documents tied or linked to your real estate properties. If you have time or you can afford it, do an inventory of assets in each of those properties.

To ensure you do this every year, schedule it together with your annual check up required by your insurance. In that way, you are reminded that you are a mortal requiring a health check.

If that isn't enough, think of all the suitable unmarried friends you have who will marry your spouse when you die before your medical check up. I'm sure they will be happy to take care of your spouse and take over your wealth (that too).

The most important part is keeping track. Come up with your own system of keeping track of what you kept in your safe or bag. Find a way to contact me if this is a mystery to you. I have a system of tracking for a small box to a warehouse of 201 files for a 3,000 strong workforce.

By the way, I still have that same bag. I've been married for almost 30 years. This time it contains my children's school and medical records, birth certificates, my marriage certificate, health insurance and life insurance policies, receipts of premium payments, certificate of titles, tax declarations, and you know the rest. 

This time, I tell my wife, my son, and my daughter that if anything happens to the house or to me, the black bag is the first thing they need to secure. I kept it where my family can always see it. I always have a small work space in the house where they can always see it. I hope to free my family from the small inconveniences of my demise or my utter stupidity in case I become reckless (again).

The Reason I’m Doing What I’m Doing Now

There has to be a simple but logical way of protecting family assets and ensuring the longevity of our families. It has to be embedded and institutionalized. The way to do it is to seamlessly integrate it in basic education. Only a change in our laws will do it. A law that specifically ensures the longevity of families and their business.

I wish these things were taught in junior or senior high school. I'm not talking about the black bag. I'm talking about file or records management. I used to coach parents from families of wealth not only in ensuring their children are secure during travel between home and school (against robbery and kidnapping). I also advise them to protect the assets they intend to pass on to their kids.

I hope you support the advocacy of classifying family business or family enterprise as a distinct business category. If you want to check who's also behind me in this journey check the "About Us" page of this website.