When a loved one passes, it can feel like the world has caved in around you. If you are overwhelmed, it may be of some comfort to know that while certain tasks, like arranging the funeral, require immediate attention, most of the decedent’s financial affairs can wait until you feel ready.

No matter where you are in the grieving process, please know that you are not alone. Your advisor stands ready to help by managing financial matters and coordinating your support team, including attorneys, accountants, trust officers, and, if applicable, a family office representative. Now, more than ever, you should feel free to lean on them.

When you’re ready, here are our suggestions for the next steps.

1. Obtain death certificates

The funeral director or hospice can assist with ordering death certificates. You’ll need at least 10 certified copies because insurers, government agencies, and financial institutions require them to process claims, close accounts, and retitle assets. If needed, you can always order additional certified copies from the county clerk’s office.

2. Gather estate plan and financial documents for review

Important documents you will need include:

  • Original will and any codicils
  • Copies of bank account statements
  • Copies of brokerage account statements
  • Prenuptial or marital agreements
  • Copies of any securities or stock options that are not included in the brokerage statements.
  • Copies of any promissory notes receivable and the balance due
  • Copy of the deed to the decedent’s residence and the deeds to any other real property
  • Ownership certificates for any automobiles.
  • Copies of IRA and 401(k) account statements
  • Life insurance policies on the decedent’s life or the surviving spouse’s life
  • List of any other assets of any type owned (e.g., jewelry, art)
  • Copies of any trusts of which the decedent was a beneficiary.
  • List of payments made for household bills, etc., for the two months after the decedent’s death
  • Mortgage statements
  • Real property tax bill for the current tax year
  • Names, addresses, and birth dates of the decedent’s children
  • Social Security numbers for the surviving spouse and children
  • Location of any safe deposit box.
  • Copies of income tax returns for the last two years

3. Consult the decedent’s lawyer

If possible, contact the attorney who prepared the decedent’s will or trust to make certain that you have copies of any documents the attorney had in their files. Advice from a qualified professional can often save the estate money, make the estate settlement process easier, and help family members avoid potential liabilities.

4. Notify financial institutions, creditors, and insurers

Alerting the bank, credit card issuers, and insurance companies helps prevent fraud and can facilitate the initiation of claims and account changes. Notify the health insurance company or the deceased’s employer to discontinue coverage. Terminate other types of insurance if appropriate (automobile, umbrella policies) and obtain an appropriate refund of premiums paid.

5. Notify government agencies

Typically, the funeral director notifies Social Security that a person has died, but it is always a good idea to double-check. If benefits are received after death, unwinding overpayments can be a complex process. If a payment was received for the month of death, the payment may need to be returned. If the deceased has a surviving spouse or dependents, you will want to inquire about changes to benefits. If Medicare benefits are involved, Social Security will inform Medicare.

6. Apply for death benefits

It is not much, but Social Security provides a surviving spouse a onetime $255 death benefit. As applicable, your financial advisor can assist you in initiating claims on life insurance policies and pensions. You should also consult your advisor to understand the best methods for taking distributions from retirement accounts. There may be income tax implications, so a thorough analysis is essential.

7. Evaluate estate tax exposure and filing deadlines

High-net-worth families may have estate tax exposure and may be required to file a federal estate tax return within nine months of the decedent’s death. Consult an advisor to minimize tax liabilities and avoid penalties.

8. Update your own estate plan

You may need to revise your estate plan to reflect your changed circumstances. Review and update your:

  • Beneficiary designations
  • Will and trust
  • Health care proxies
  • Powers of attorney

Final thoughts

Grieving is not a linear process, and neither is managing the aftermath of loss. You don’t have to tackle every financial matter at once, and you don’t need to do it yourself. Coordinated support from your trusted advisors can help alleviate some of your burdens and protect your financial future while you focus on caring for yourself and others.

Please reach out for assistance.

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