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As we age, we are inevitably faced with the loss of a loved one. Sometimes we have time to prepare, other times it is sudden. If we are lucky enough to have some time to prepare ourselves mentally and emotionally, 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 following 9 items should be addressed as soon as you can get through grieving and feel comfortable accepting the challenge.
Item 1: Obtain 5-10 additional copies of the certified death certificate.
For most survivors, you will need the ability to prove the death of your spouse or parent in order 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 forged and illegal 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 in 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 a few grandchildren who you’ve learned are worthy of your trust. 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 interests and your financial, emotional, and physical well-being. While the final decision is always yours, you need the advice, insights, ideas, and help of trusted loved ones to help you make the best decisions for your present and future needs.
After deciding on a few trusted family members, you should add some of the following outsiders to your team. I suggest that if you have a financial and estate advisor, you bring them in first to review your situation and make suggestions on what can be done first without the need for an attorney. Most good financial and estate advisors will be able to help you handle all the filings and forms needed to make death claims, benefit changes, and updates with the need for attorney fees right now. If you already have an existing relationship with this financial advisor, there may be little or no cost for these services.
If you brought in an attorney first, many of these basic filings would be charged to your account at fees that could be as high as 5 percent of the value of the assets, transfers, or distributions. These costs could be saved by using a financial advisor to guide 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 in which the death occurred. If you don’t, there may be penalties incurred.
Having an attorney involved is something you may need to do. But I would read the rest of these items and then make sure I have the checklist of items 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 begin processing the information and suspend the monthly payments, if any. Don’t worry, this is normal. A surviving spouse will receive the greater of the two social security amounts upon the death of one of the spouses. As an example. If Spouse A was receiving $1,000 per month and Spouse B was receiving $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 decedent. Ask if there were any death benefits as part of their employment. Also, ask if there were any death benefits as part of his retirement plan. Ask if there are any necessary modifications 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 answers, you will know if there is something else to take care of.
Article 4 – Submit Life Insurance Claims
Many people have multiple life insurance policies, possibly from several different companies over the years. If you find policies or receive any bills or statements 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 income. You may need to file a death claim for each different policy you have to satisfy all of the claims on the policy.
Point 5: contact with banks, brokerage and credit unions
Your local bank, brokerage and credit union will need to 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 appropriate documentation to handle the transactions.
Point 6 – Close unwanted and unnecessary accounts
It probably makes sense for you to 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 needed.
Item 8 – Review Real Estate Ownership Agreements
If the decedent 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 co-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 property arrangements exist, you can start researching how it should be and will be handled. You may need to consult with a real estate attorney, but I’d start by asking how much they charge for a “real estate” transaction.
Only after finding out, mention that this will involve a deceased owner. It may cost a bit more as a real estate transaction for a deceased owner, but if you list it as a real estate transaction, many attorneys will try to charge a much higher fee (possibly up to 5% of the home’s value). through succession and the 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 prey on widows and the elderly. They have no conscience and are more than willing to take advantage of anyone who is willing to listen to their story.
Make sure one or more trusted children, siblings, or friends review any type of financial “opportunity,” investments, donations, 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 like they’ve got you.
Don’t let this happen. Always contact one of your trusted team members before making important or suspicious decisions.
Summary:
As we age, 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 you can wait until you are 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 over 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!
