Probate, Finances & Beyond: Managing the Aftermath
Experiencing the loss of a cherished individual can deeply shake one's world. Finding comfort from loved ones or support networks can help after a loss. It's especially helpful in the beginning.
Immediate Steps Following a Loved One's Passing
Each circumstance is distinctive, and there exists no universal formula for navigating such moments. Nevertheless, here are some suggestions to contemplate undertaking in the immediate aftermath of a loved one's passing.
Step 1: Confirmation of Passing
No matter where your loved one died, a doctor needs to confirm and record the time of death. It could be in a hospital, hospice, at home, or somewhere else. This initial procedure is essential for the issuance of a death certificate.
Step 2: Organ Donation Consideration
If your loved one has expressed their wish to donate their organs, it will make the process easier. This can be indicated on their driver's license, healthcare directive, or organ donation registration.
However, if no such indication exists, a prompt decision regarding organ donation must be made, either preemptively or posthumously.
Step 3: Arrangements for Dependents and Pets
Not everyone has dependents or pets but it's still important to consider who will handle things if necessary. Create temporary arrangements until a permanent solution is established.
Step 4: Notification Protocol
Typically, a designated family representative will inform close friends and relatives, enlisting their assistance in spreading the news further. Utilizing text messages or group chats offers a swift means of reaching multiple individuals simultaneously. You may need to tell the deceased person's employer(s) and cancel any upcoming appointments with doctors.
Step 5: Designating a Point of Contact for Travel and Logistics
For those attending the funeral or memorial service from afar, assigning a point of contact who can address inquiries and provide logistical information can prove invaluable.
Navigating the First Two Weeks Following a Loss
After you lose a loved one, it's important to take care of administrative tasks in the weeks that follow. This includes things like notifying relevant parties and handling any necessary paperwork. It can be overwhelming, but staying organized and seeking help when needed can make the process easier.
Remember to also take care of yourself during this difficult time. From initiating the probate process to seeking counsel from legal and financial professionals, here’s what to consider:
Locating and Submitting the Will for Probate
The deceased person's will must be shown to the local probate court with a certified copy of the death certificate. Given the potential complexity of this process, engaging the services of a legal expert might streamline proceedings.
Identifying Trust Documents and Insurance Policies
Trusts, while often bypassing probate, still warrant attention. Promptly informing the trustee is essential, especially considering their potential impact on estate taxes.
Seeking Guidance from Financial and Legal Advisors
Consulting with professionals familiar with your loved one's financial arrangements can provide valuable insights. Additionally, seeking your own legal and tax counsel is advisable to navigate the intricacies of settling the estate.
Managing Mail Forwarding
As the designated executor or authorized individual, arranging for mail forwarding is essential. Proof of authorization will be required to manage the deceased's mail effectively.
Notifying Social Security Administration
Promptly informing the Social Security Administration of the death is crucial, as it may impact survivor benefits and entitlements. Utilizing available resources such as the SSA’s helpline or online services can facilitate this process.
Addressing Workplace Benefits and Insurance
Contacting the deceased's employer to inquire about benefits, retirement plans, and insurance coverage is essential. Understanding the distribution of benefits and any continuation options, such as COBRA, is vital.
Exploring Medicare Entitlements
If the surviving spouse is eligible for Medicare benefits, initiating contact with Medicare is advisable to explore available entitlements.
Communicating with Children's School
If children are affected by a loss, it is important to inform the school. This way, they can receive the necessary help and support. This will ensure that they get the care they need during this difficult time.
After Death: Months 1–3
After a loved one passes away, it is important to handle important tasks in the first few months. This will help prevent issues from arising in the future.
Taking care of these tasks early on can make the grieving process easier. It is crucial to address matters such as finances, legal documents, and personal belongings promptly. By doing so, you can ensure a smoother transition and avoid additional stress during an already difficult time.
Managing IRAs
Contact the IRA provider to determine if any Required Minimum Distributions (RMDs) are due. It's crucial to note that if the deceased had RMDs pending for the year, they must be withdrawn before December 31. If you inherit an IRA, talk to legal or tax experts for advice on what to do with the money.
Notifying Financial Institutions
For joint bank account holders, accessing funds or lines of credit may still be possible. Joint accounts often grant survivorship rights, making the surviving owner the sole account holder. However, maintaining records of expenses until the estate settles is advisable.
Accounts owned by one person should not be touched until the executor handles them. The executor can use the money to pay debts with proper documentation. Some accounts can be set up to transfer to named beneficiaries upon death with the necessary paperwork. Promptly informing financial institutions, even if lacking requisite documents, can preempt fraud or identity theft concerns.
Securing Estate Resources
The person in charge needs a tax ID and bank account to handle estate matters. This includes selling assets, paying debts, and giving inheritances.
Addressing Creditors and Insurance Companies
Contacting credit card companies can halt recurring charges and safeguard against identity theft. Exploring potential death benefits associated with credit cards is advisable. Notifying insurance providers ensures continued coverage during estate settlement, encompassing life, home, auto, and personal property policies. If applicable, informing the mortgage company is essential.
Managing Credit Reporting and Subscriptions
Alerting credit bureaus about the death prevents unauthorized credit issuance. Requesting credit reports from all three agencies can reveal open accounts for closure. Stop recurring charges by canceling memberships, subscriptions, and services found on bank or credit card statements. This includes gyms and streaming platforms.
Bottom Line
After someone dies, it's important to handle certain tasks in the months that come after to prevent issues in the future. These tasks can include things like settling their estate, notifying relevant parties, and updating important documents. Taking care of these responsibilities promptly can help alleviate stress and prevent complications down the road.
Sources:
https://www.fidelity.com/learning-center/life-events/checklist-after-death
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
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This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.