Losing a loved one is one of the most challenging experiences in life. Alongside the emotional toll, there are often numerous financial and administrative responsibilities to manage. Understanding the steps to take can help ease some of the stress and provide clarity during this difficult time. Here’s a guide to help you manage financial matters after a loss.
Seek Help from Estate Planning Professionals
Navigating the financial implications of a loved one’s passing can be complex, so it’s crucial to enlist the right help:
- Coordinate with professionals: Reach out to an estate attorney to understand the details of the estate plan, including the executor, trustees, and guardians for any dependents.
- Hire support if needed: If you’ve been named executor, consider working with an attorney and tax professional to settle the estate.
- What to do if there’s no will: In cases where a will is absent, the state may appoint a personal representative. If you want to take on this role, consult an attorney about state-specific rules.
- Handle complex estates: For estates with disputes or extensive assets, consider hiring a probate attorney with experience in the relevant jurisdiction.
Pro Tip: Take this time to update your own estate planning documents. If the deceased was your power of attorney, health care proxy, or executor, you’ll need to name replacements.
Locate and Gather Key Records
To manage estate matters efficiently, gather these essential documents:
- Death certificates: Obtain multiple certified copies, as some companies require originals for claims or transfers.
- Personal documents: Collect passports, birth certificates, social security cards, military discharge papers, and any other vital records.
- Financial and online account information: Find account details for banks, investments, subscriptions, and digital accounts. Avoid logging in directly; contact companies for guidance on account closure or access.
- Safe deposit box access: Check with the person’s bank to locate and access any safe deposit boxes.
- Certificates of authority: If you’re the executor, obtain a certificate of appointment to act on behalf of the estate.
For securities like stocks, you may need a medallion signature guarantee to authorize transfers.
Update Financial Accounts
Managing financial accounts is a critical step after a loved one’s death:
- Employer benefits: Contact the deceased’s employer to inquire about unpaid wages, life insurance, and retirement accounts.
- Life insurance claims: Notify insurance companies and provide death certificates to claim benefits.
- Joint accounts: Update or transfer ownership for joint accounts, including banking, investment, and credit card accounts.
- Insurance policies: Cancel unnecessary policies and ensure coverage for assets like homes or cars while the estate is settled.
- Social Security and veterans’ benefits: Notify the Social Security Administration to stop benefits or apply for survivors’ benefits. Check for veterans’ benefits or burial assistance if applicable.
- Credit bureaus: Inform major credit bureaus about the death to reduce the risk of identity theft.
You may also want to set up an estate checking account to handle expenses and payments during the settlement process.
Review Real Estate and Property
Real estate and other personal property require careful management:
- Debts and liens: Identify any liabilities attached to the properties and consult an attorney for guidance.
- Property maintenance: Decide how to maintain properties, including insurance and upkeep, until the estate is settled.
- Titles and registration: Update real estate titles and vehicle registrations. Cancel the deceased’s driver’s license to prevent identity misuse.
If the deceased owned property in multiple states, ancillary probate might be necessary. Work with an attorney familiar with these processes.
Lean on Support When You Need It
This process can feel overwhelming, but you don’t have to navigate it alone. Working with us and estate planning professionals can provide clarity and direction as you manage your loved one’s affairs.
