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Keeping your financial house in order is important if you care about the financial and emotional well-being of your heirs.

All necessary investment, insurance and ownership papers should be kept together, so they can be found easily in the event of your death. You also should have the family personal and medical histories readily available. Going beyond even your will, you should clearly spell out your personal wishes for funeral arrangements and the division of specific personal items, so there's little chance family members will wind up at each other's throats in disagreement.Each week, this column receives dozens of letters from families who have found old stock certificates or other investment papers in odd places many years after a loved one's death. While many times they are worthless, in some cases they are valuable. In either case, they shouldn't simply have been stuffed away like old postcards.

"I find frequently that people buy stocks or other investments and completely lose track of them, when they could have sold them and made some money," observed Arnold Cernik, a senior vice president with Dean Witter Reynolds Inc. "It also can cause a problem in the event of a death, when the heirs aren't sure what is held or its value."

I'm often contacted by surviving spouses with little clue about the investment holdings they've been left, their value and the need to keep up on them. I've spoken with widows whose holdings in troubled companies, such as International Harvester and Continental Illinois, plummeted in value while the certificates gathered dust in desk drawers. The owners didn't realize they should have sold.

I've also seen family members refuse to talk to each other for the rest of their lives because a parent's will didn't clearly state who should receive the refrigerator or who'd get the antique clock.

In addition, many families are left with little sense of heritage or medical history when senior family members pass away. These days, many Americans know very little about even their grandparents' backgrounds.

"Letting your heirs know your specific wishes is a personal issue, one that saves them from having to guess as what you wanted in terms of, say, the funeral service and flowers," said attorney David Ma-gee, author of a workbook and organizer entitled "Everything Your Heirs Need to Know: Your Assets, Family History and Final Wishes" (Dearborn Financial Publishing: 1991). "In addition, many wills are written in generalities, splitting the estate into several parts without expressing any specific wishes about the division of family heirlooms or other rather basic items."

According to Magee, those closest to you should know if you'd want to be kept alive by extraordinary measures should there be no serious hope of recovery; where you were born; where your parents lived and are buried; and the different types of work experience you've had.

In the event of your death, heirs should be aware of your wishes regarding donation of your body for medical education; whether you wish an open or closed casket, or cremation; whether you prefer a public, private or religious funeral service; and where you'd like memorial donations sent.

Family members should be able to easily locate your birth, marriage, divorce or annulment records; insurance policies for home and contents, vehicles, health, disability, accident and travel; savings and checking accounts; and safety deposit boxes. Stocks, bonds, mutual and money-market funds, commodities and real estate deeds also should be kept in an easy-to-find location.

In addition, Magee believes, your heirs should know their entitlements under your Social Security, pension, individual retirement account or Keogh plan; worker's compensation and veteran's benefits.

You can put together such information without either a workbook such as Ma-gee's or a computer program. A notebook and manila envelopes will probably do just fine. But, however you do it, it's important.

If you care about your legacy and your family's future, get everything together now.