Description

Death & your financial stability

Dealing with the death of a loved one is stressful enough. But not knowing what to do with someone's finances after the person has passed away poses an additional burden on a grieving family.  

What you'll learn:   

• One key element you need to know 

• What documents you need  

• Get a list of who needs to be contacted

What do we need to know?

1. Surround yourself with people you trust. Others may see vulnerability, so make sure those helping have the right motives and nothing for personal gain. 
2. Consult the right people. Friends and family may have their hearts in their right place, but when someone says "I know a guy who could help” can create more work with fewer advantages!
3. Select professionals who specialize in wills, trusts, and estate planning. Avoid real estate lawyers, divorce lawyers, personal injury or criminal attorneys, and others who don't specialize in estate planning as they may not know the tax laws that are constantly changing.
   1. After a loved one dies, many heirs balk at hiring legal help because they worry about the cost. But that's often a penny wise and a pound foolish since advice from a qualified professional could save an estate many thousands of dollars, make the process of settling an estate much easier and help family members avoid potential liabilities.
4. One of the most time-consuming aspects of tending to the financial affairs of someone who has passed away is gathering the litany of documents that need to be assembled. For many families, this is a nightmare chore due to haphazard record-keeping, poor planning and a lack of knowledge about where critical documents are located.

What are the important papers that one should keep or need: After a person's death, an executor of an estate should collect or order the following documents, at a minimum:

• Death certificate(s). All these documents will help you find accounts and assets, and assess outstanding debts, as well as submit claims for benefits and cash payments that may be due the deceased person's beneficiaries and heirs.
• Will or trust
• Insurance policies (life, homeowners, health, disability, auto, etc.)
• Last credit card statements
• Investment accounts (IRAs, 401(k) plans, mutual funds, pensions, etc.)
• Last checking and savings account statements (including CDs and money-market accounts)
• Last mortgage statement
• Last two years' tax returns
• Marriage and birth certificates (of the deceased's spouse and children)
• An up-to-date credit report of the deceased

Who needs to be contacted:

A key next step is to notify all the following places of the individual's death. Each is important for different reasons.

• Social Security Administration
• The deceased person's employer
• Insurance companies
• Credit bureaus
• Credit card companies
• Post office
• Utility companies
• Creditors

Cancel or Transfer Accounts, Memberships, and Subscriptions

1. Following someone's death, you don't want subscriptions, memberships or services they'll no longer be using to stay in force. So cancel those immediately, along with credit card, insurance and financial accounts that will be inactive. "If the person was married, transfer the power, electricity and water bills that may be in their name to their surviving spouse."