A Checklist: What to Do When a Relative Passes Away
Photo Credit: Luca Micheli, Unsplash
Because it is such an emotional moment when a loved one passes away, the things that need to be handled by the survivors may be highly burdensome. This checklist is meant to serve as a reminder of some of the items that need to be handled before and after the event.
Immediately
Family members will have obligations to fulfill shortly after a relative passes away.
■ Plan a memorial or funeral service.
■ Find out if the deceased specified their intentions for the funeral or memorial ceremony in writing or orally.
■ Speak with a memorial organization or funeral home.
■ Inform your family and friends of your plans. Ask them to assist you in making contacts.
■ Assess whether the decedent's funeral expenses were paid in full or in part. (You can consult any agreement paperwork the decedent may have saved or inquire at the funeral home.) Check with the cemetery to discover if the decedent purchased a site or burial insurance.
■ Send an obituary to the decedent's local newspaper(s). If donations are preferred to flowers, you could specify a nonprofit organization.
■ Make a note of people who sent donations, flowers, or cards so that you may send out acknowledgments.
■ If the decedent was a veteran, inquire with the Department of Veterans Affairs about any benefits available to the estate. Veterans, service members, and their families are eligible for free burial at a national cemetery. Suppose a veteran is buried elsewhere and was receiving Veterans Affairs (VA) disability benefits at the time of their death. In that case, their estate may be eligible for a burial and funeral allowance. Additional perks include a ceremonial American flag, a headstone, or a presidential memorial certificate.
■ Protect the deceased's tangible belongings, such as cutlery, dishes, furniture, or artwork. Subsequently, you and the executor will need to have these objects evaluated and distributed in accordance with the intentions of the deceased. This may be challenging if the property has already been transferred to several family members.
After the funeral
When a relative dies, various financial issues must be addressed. You may need to wait to take these measures. You and your family will need time to mourn. Most financial counselors or investment specialists may advise you to avoid making any adjustments or long-term financial choices for at least six months to a year after losing a loved one. Yet, some concerns must be addressed within legal time frames. These are some of the preliminary actions that may be required:
■ Inform the decedent's attorney of their death.
■ Determine whether a will exists and who was named executor.
■ Contact witnesses to the will if you are named executor in the will or by the court. Contact them if someone else has been named as the estate executor.
■ Arrange a meeting to go over the will and settle the estate. If interested parties cannot attend, copies of the intention will be made available.
■ If the deceased had a safe deposit box, the executor must find out what's in it and get permission to take it out.
■ Meet with the attorney (or your counsel) to review the actions required to administer the decedent's estate (the probate process). Bring as much information as possible regarding your money, taxes, and obligations. Don't worry about getting the files in order initially; the lawyer will have expertise in arranging and comprehending complex financial figures.
You should bring the following documents:
Death certificate copies for the deceased (You can get these from the funeral director, and getting at least 10 to 20 copies is a good idea.)
A duplicate of the deceased's birth certificate (and your marriage license if the decedent is your spouse)
Financial disclosures from banks, brokerage firms, and insurance companies
Additional financial records include prior-year tax returns, overdue credit card and utility bills, and mortgage payments.
If relevant, the decedent's Social Security number and Veterans Affairs identification number
■ Locate a financial organization (such as a bank or credit union) in your region that can supply you with signature guarantees for specific papers, if required.
■ Inform the estate's creditors. All credit card accounts should be closed.
■ Bills and bequests can be paid from a single bank account. The estate, not the remaining family members, is accountable for the decedent's debts. Paying up the debts yourself merely raises the estate's net worth, which may result in more outstanding inheritance taxes.
■ The administrator is in charge of distributing property to heirs and legatees. Usually, executors do not distribute all estate assets until the deadline for creditors to file claims expires, which can be up to a year after death. But, after the executor knows the estate and the potential claims, they can distribute most of the assets while keeping a reserve for unanticipated claims and estate closing fees.
■ The executor must file an account with the probate court detailing all estate revenue since the date of death, and all costs and estate distributions. Once the court has approved this final account, the executor can distribute any remaining funds from the closing reserve and complete their duties.
Deactivating Social Media Accounts
■ Take stock of the decedent's digital presence and become acquainted with the terms of service for each platform.
■ Remember that each platform has its own set of regulations and criteria for removing or memorializing accounts.
■ Determine whether to delete or commemorate the account, which generally necessitates verifying the executor's identity and a death certificate or obituary.
■ As part of the account termination procedure, you may be required to complete an online form, depending on the platform.
Additional Steps You May Need to Take
■ Investigate if your homeowner's or vehicle insurance plans cover you during the probate procedure.
■ When needed, restructure your homeowner's, casualty, and life insurance plans.
■ Alter the registration of investment securities by contacting the decedent's financial adviser, investment professional, or brokerage business and immediately halt any orders.
■ Alter the title on any property the decedent owns (including real estate and cars).
■ Call financial institutions to establish what information they require and how to alter the registration on any accounts held by the dead.
■ Remove the decedent's name from any joint bank accounts you have with them.
■ Examine and amend your estate plan, including insurance policies, legal papers, financial strategies, etc.
■ If the estate's worth exceeds the estate tax exemption for the year of death, you must file a federal estate tax return within nine months of the end. It is critical to seek the counsel of an experienced estate planning practitioner. It may also be essential to submit a final tax return on behalf of the decedent.
■ Call the decedent's employer's employee benefits department to establish what death benefits may be payable and to whom. Many certified copies of the death certificate and other specified evidence may be required.
Understanding benefits
Decide how you will handle any income from the decedent's retirement plan, union survivor, Social Security, veterans' benefits, or life insurance policies.
Social Security benefits
Notify the Social Security Administration (SSA) if the decedent received Social Security payments as soon as possible. Usually, the funeral home will notify the SSA of the person's death. If you want the funeral home to make the report, give them the decedent's Social Security number.
If you are the decedent's spouse and wish to inquire about Social Security survivor's payments, you must visit your local Social Security office in person. Bring the decedent's Social Security number, a certified copy of the death certificate, and evidence of connection (such as a marriage license).
If the deceased's surviving spouse lived with them, a one-time lump-sum death payment of $255 might be made. The widow or widower is also entitled to monthly payments, which begin at 60 (50 if incapacitated) or at any age if he or she cares for an eligible youngster (under age 16 or disabled). Unmarried minor children (under the age of 18 or 19 if still in high school) get Social Security payments on a monthly basis. You might be entitled to Social Security benefits if you divorced the decedent after at least ten years of marriage.
The Social Security Administration may be reached at 1-800-772-1213. You can use automated phone services 24 hours a day or chat with a Social Security person between 8:00 a.m. and 7:00 p.m., Monday through Friday.
Veterans’ benefits
Bring the decedent's birth certificate, Social Security number, death certificate, and Veterans Affairs paperwork to the office in person. Pension payments and financial help for college fees may be among the benefits paid to a spouse and heirs. Don't hesitate to contact the Department of Veterans Affairs at 1-800-272-1000 to check operating hours or to obtain assistance by phone or video. Assistance is accessible from 8:00 a.m. to 9:00 p.m. ET Monday through Friday.
Insurance benefits
If you are the beneficiary of an insurance policy, contact the insurance company or agent to acquire the death claim paperwork you must complete and return. A certified copy of the death certificate must be included with the applications.
Retirement plan and pension benefits
If you are the beneficiary of the decedent's retirement or pension plan, contact the employee benefits department of the employer that sponsors the plan to find out what your payout choices are and what documents the plan requires.
Down The Road
The probate procedure can be time-consuming, lasting two to three years or more. Yet, in rare cases, such as when an estate contains trust assets, probate may be avoided entirely. The executor should be able to predict how long it will take to settle the estate.
There is no fast remedy for the sadness and stress of losing a loved one. Survivors are frequently advised not to make any drastic changes in their lives, such as moving, reinvesting funds, or selling the family home, too soon following a loss. Making significant judgments quickly may result in regret later. Instead, allowing yourself time to grieve and heal from one of life's most unavoidable yet terrible occurrences may be preferable.
Important Disclosures
This material is provided for general and educational purposes only and is not investment advice. Your investments should correspond to your financial needs, goals, and risk tolerance. Please consult an investment professional before making any investment or financial decisions or purchasing any financial, securities, or investment-related service or product, including any investment product or service described in these materials.
Portions of this article were sourced from the work of MFS Heritage Planning. Neither MFS nor any of its subsidiaries are affiliated with Optima Capital Management.
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