Newsletters 2010 Newsletters Ask Mary Beth: What financial steps do I take if I lose a loved one?
Wednesday, 10 March 2010 20:57
Handling the passing of a loved one can be one of the most stressful and overwhelming experiences in life. Anxiety and frustration may set in for those who find themselves in the position of helping to settle the affairs of a loved one. While nothing we suggest will eliminate the emotional pain of losing a loved one, the steps listed below can at least help ease the mental burden and exhaustion that can occur when confronted with such a situation.
• Focus first on the funeral and notifying others.
After the passing of a loved one, the immediate focus should be on the decedent’s last wishes and final arrangements. You will need to determine if a burial or cemetery plot has been pre-paid for, or whether instructions for cremation have been left. Reaching out to other family members, religious officials and a funeral home director for guidance and assistance with the arrangements will be best. You’ll want to contact friends, family and co-workers for support.
• Take care of necessary administrative details.
Obtain a copy of the temporary death certificate that will be issued by the attending doctor or coroner and contact your Local Registry Office with certificate, address, complete name, and date and place of birth and death for your loved one. This will allow you to apply for and obtain a standard death certificate. A minimum of 3-4 copies of a death certificate should be ordered depending on how complex the deceased’s estate is. A rule of thumb is that a death certificate will be required by each financial institution that the deceased worked with. You will need certified copies on hand for any settling of life insurance policies, annuities or other financial accounts your loved one held.
In the state of California, you can visit the California Public Health Department at www.cdph.ca.gov/ to apply for certified copies of the death certificate.
• Notify all sources of income generation.
If your loved one was receiving income from an employer, pension, the Social Security Administration or any other source, they should be notified almost immediately of the death.
Start by reaching out to the human resources department of any employer or pension paying companies to notify them of the death. In addition, while many funeral directors will voluntarily provide death information to the Social Security Administration, family members of a deceased individual are still legally responsible to notify the SSA. You can do so by calling SSA toll-free at 1-800-772-1213.
• Gather all estate and other important documentation.
Among the various documents you’ll want to track down are: wills, trusts, insurance policies, investment account statements, business and partnership agreements, credit card statements, and any lists of assets and liabilities for the decedent.
Wills and trusts are of utmost importance and will specify who is to be appointed as executor or personal representative and is presented with the task of settling the decedent’s estate. The executor will be responsible for settling debts with creditors, distributing assets to heirs, determining beneficiaries of insurance policies and ensuring timely filing of an estate tax return. On the chance that your loved one did not leave behind a will, a court appointed administrator will be designated through the probate process.
It is undeniable that a variety of questions and potential road blocks will arise when working with or settling the estate of a loved one. It is imperative that you consult with an experienced and knowledgeable professional when confronted with this task to ensure that you are given the appropriate guidance. The level of assistance you’ll need from a financial and estate planning expert will depend on the complexity of your loved one’s affairs. We often play an intimate role in helping guide our clients after the death of a loved one. Please use as a resource or call us for a referral to a trusted estate attorney for additional help.
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