As we get older, we are inevitably faced with the loss of a loved one. Sometimes we have time to prepare, other times it’s sudden. If we are lucky enough to have some time to mentally and emotionally prepare, the process of coordinating these elements can be much more controlled and organized.
If the death is sudden and we face it unexpectedly, it will be more difficult since the traumatic and emotional effects of the death of our loved one are still fresh and we need time to allow ourselves to grieve. In addition to the immediate needs of funeral arrangements, final medical bills, and notification of family and friends, the rest of these matters can be handled in the coming weeks or even months if you are not ready or willing to address them immediately after your loss. . .
The next 9 items should be addressed as soon as you can grieve and feel comfortable accepting the challenge.
Item 1 – Obtain an additional 5-10 copies of the certified death certificate.
For most survivors, you will need the ability to prove the death of your spouse or parent to transfer or change ownership of assets, close accounts, or modify existing benefit programs. Most businesses and organizations that handle these items will require a certified copy of the death certificate as proof of death. Some may be willing to use a photocopy if you ask. They may be required to visually inspect the certificate before accepting a photocopy, just to make sure it is an original and certified.
Unfortunately, there are people who try to collect death benefits using illegal and falsified death certificates. This has become more common and many institutions do not accept copies because of this. But, especially if you are meeting with the institution in person, bring a certified original copy and ask if they can make and accept a photocopy.
Each of these original and certified death certificates will cost between $5 and $25 if you get them at the time of the funeral. If you wait until weeks, months, or years later, they could cost anywhere from $50 to $200 depending on where you get them.
Estimate your needs for the bank, brokerage, IRA, 401k, life insurance, annuity, and other accounts you have. Then add about 5 more to that number for various others that require it. Also, always keep at least one original for your future records and your family in case they need it later.
Point 2 – Assemble your trusted team.
Your Trusted Team. Who is on your trusted team? For most people this should start with family members. Parents, children or siblings should always be considered first. As you get older, you may even include some grandchildren who you’ve learned are trustworthy. This first component is those people you know you can trust because they share your complaint and are always looking out for your best interest.
Many of the decisions you will need to make in the coming months may involve looking out for your best interest and your financial, emotional, and physical well-being. While the final decision is always yours, you need the advice, opinions, ideas and help of trusted loved ones to help you make the best decisions for your present and future needs.
After settling on some trusted family members, you should add some of the following external members to your team. I suggest that if you have a financial and estate advisor that you bring them in first to review your situation and make suggestions as to what can be done first without the need for a lawyer. Most good financial and estate advisors will be able to help you handle all the filings and forms necessary to make death claims, benefit changes, and updates with the need for attorneys’ fees at this time. If you already have an existing relationship with this financial advisor, there may be little or no cost for these services.
If you brought an attorney first, many of these basic filings would be charged to your account at rates that could be as much as 5 percent of the value of the assets, transfers, or distributions. These costs could be saved by using a financial adviser to walk you through them.
You’ll also want to involve your income tax preparer at some point to make sure you have everything properly settled with the IRS before the end of the year the death occurred. If you do not, there may be penalties incurred.
Having a lawyer involved is something you may need to do. But I would read through the rest of these items and then I would make sure that I have the checklist of items that you want the attorney to handle. If done correctly, much of the estate will already be managed and distributed before you visit the attorney.
Item 3 – Contact employers and Social Security
You will need to contact Social Security to notify them of the death. They will then start processing the information and stop monthly payments, if any. Don’t worry, this is normal. A surviving spouse will receive the greater of the two amounts of social security upon the death of one of the spouses. As an example. If Spouse A received $1,000 per month and Spouse B received $750 per month, if Spouse A dies, Spouse B will receive the greater of the two amounts, $1,000 each month thereafter.
Contact all past and present employers of the deceased. Ask if there were any death benefits as part of your employment. Also, ask if there were any death benefits as part of his retirement plan. Ask if there is any necessary modification to the monthly pensions that are being received. Finally, ask if any modifications are needed to your health insurance if it is provided through the company. Based on these responses, you’ll know if there’s anything else to take care of.
Article 4 – Filing Life Insurance Claims
Many people have multiple life insurance policies, possibly from several different companies over the years. If you find the policies or receive a bill or statement in the mail, ask about death benefits and the options available to you. As long as you were the beneficiary, there should only be a few forms to complete and submit before you can receive your life insurance death proceeds. You may need to file a death claim for each different policy you have to satisfy all the claims in the policy.
Item 5: Contact Banks, Brokerages, and Credit Unions
Your local bank, brokerage and credit union should be notified of the death. If your accounts were jointly owned with your spouse or parent, then you will only need to change the names on the account to remove the deceased person. If they were only in the name of the deceased, then you will need to handle them differently. Ask the institution what their rules and procedures are regarding these accounts and submit the proper documentation to handle the transactions.
Point 6 – Closing unwanted and unnecessary accounts
It probably makes sense that you close all unwanted or unnecessary accounts at this point. The only exception is that you may want to keep a joint account open, in case you receive a check made out to the deceased. You may be able to deposit this check into the joint account if you sign it “Deposit Only.” This could save you an expensive trip to the attorney’s office or surrogate court later.
Item 7 – Review Wills and Powers of Attorney
It is always a good idea to review your wills, power of attorney, medical instructions, health care proxies, and any trusts you have established on a regular basis at least every 3-5 years. It becomes even more important after the death of a spouse or parent. You may need to revise executors, trustees, and other appointees to reflect current situations.
You’ll also want to look at your existing beneficiary arrangements and see if they can be simplified, modified, and corrected to better represent your current wishes. This can be done with a lawyer, online, or with one of the many legal software programs that are available. The key is to make sure they are reviewed, executed, and notarized as necessary.
Item 8 – Review Real Estate Ownership Agreements
If the deceased owned real estate on their own or jointly with others, you will need to look at how this will be affected by their death. There are certain rights that joint owners of real estate may or may not have, depending on the type of property. It can also differ from state to state depending on whether the owner was a resident or owned the property for vacation purposes.
Once you have a clear idea of what kind of ownership arrangements exist, you can start to investigate how it should be handled and how it will be handled. You may need to consult with a real estate attorney, but I would start by asking how much they charge for a “real estate” transaction.
Only after you find out, mention that this will involve a deceased owner. It may cost a little more as a real estate transaction for a deceased owner, but if you bring it up as a real estate transaction, many lawyers will try to charge a much higher fee (possibly as much as 5% of the value of the home). through the succession and patrimonial process. This could cost you thousands instead of hundreds of dollars if you let them. But now you know better.
Article 9: Protect and preserve your assets from fraud
Today we have a whole new generation of criminals out there. Many of them take advantage of widows and the elderly. They have no conscience and are more than willing to take advantage of anyone willing to listen to their story.
Make sure one or more children, siblings, or trusted friends review any financial “opportunities,” investments, gifts, or scams before you decide to part with your money. These scammers will try to get small amounts at first, then escalate their fraudulent activities to much larger amounts once they feel they have you on the hook.
Don’t let this happen. Always contact one of your trusted team members before making important or suspicious decisions.
Summary:
As we get older, making good decisions can become more difficult. It becomes even more difficult if you have just lost a loved one and are grieving. Don’t let anyone rush you, but listen to your trusted team members if they tell you that you need to do something now. Ask them to explain why it needs to be done right away or if it can wait until it is ready. Some items require more urgent attention, especially if your loved one passed away closer to the end of a calendar year.
Most of these items can be handled for a period of time when you are ready to tackle them. I suggest you take them one at a time and ask your Trusted Team members for help. Finish one, then move on to another, until you complete them all. If you try to do them all at once, you may end up frustrated and not wanting to continue. There is a great saying… “This too shall pass”. Remember that, when you feel overwhelmed. This too shall pass!
