The death of a loved one brings not only emotional changes but practical ones as well, as surviving family members adjust to the loss of a spouse, child, parent or friend.
Sometimes the financial, estate, and personal issues that come after the funeral can feel overwhelming to a person who is grieving. This article suggests some practical steps for addressing those issues.
Collecting Benefits
Life Insurance: Locate all policies, and remember to contact the deceased's former employer about a possible group policy. Have a certified copy of the death certificate to redeem a policy. Also, this is a good time to review your own life, auto and home insurance policies to see if they need to be revised.
Social Security: You may be eligible to receive benefits as a surviving spouse, dependent child, grandchild, parent, or divorced spouse under certain circumstances. Call your local Social Security office or visit www.ssa.gov.
Veterans Benefits: A portion of funeral expenses are paid by the U.S. Department of Veterans Affairs for discharged veterans. Survivors also may be eligible for VA benefits in some instances. See your local VA agent and ask for the brochure, "Federal Benefits for Veterans and Dependents."
Pension and Retirement Accounts: Contact the deceased's former employer or Civil Service Commission to see if you are eligible to receive benefits from a pension or retirement account. Some unions and fraternal organizations also have death benefits for members and survivors.
Bank and Savings & Loan Accounts: In most cases, jointly owned accounts transfer directly to the surviving spouse. If there is no surviving spouse, however, and the value of the account is substantial, an institution could freeze the accounts until the heirs are identified.
Business Assets: If you do decide to retain ownership of the deceased's business assets (stocks, etc.), you will need to have them transferred to your name. You might want to check with an attorney or tax advisor about the effects on your personal income taxes.
Organizing Your Affairs
Charge Accounts: Return all credit cards in the deceased's name to the institution, along with a memo notifying them of the death.
Health Insurance: Check with the deceased's employer to see if health insurance coverage can be continued or converted to family members.
Home Mortgages and Loans: Notify holders of any mortgages or loans, and check to see if the deceased had an insurance policy to automatically pay off the balance of any loans. The remainder of the loans will need to be transferred to a survivor.
Motor Vehicles: Most states allow for an easy transfer of ownership of vehicles, but remember that also includes responsibility for loans, taxes and insurance.
Safety Deposit Boxes: Items owned solely by the deceased must remain in the deposit box until beneficiaries are identified.
Trust Funds: You will have to contact the deceased's attorney or bank officer who handles the deceased's trust fund.
Wills: Whether you have a will or not, this is a good time to draft or revise it.
Settling An Estate
Wills, Letters of Instruction, & Estate Records: Locate all relevant documents. The will specifies the deceased's decisions for distributing assets. A "letter of instruction" may provide instructions about the funeral service, location of the will, and other papers. Without these documents, it might be necessary to use the deceased's checkbook, receipts and mail to track down mortgages, loans, charge accounts, etc.
Probate: As a general rule, assets that are not jointed owned are subject to probate. The higher the value of those assets (including real estate, bank accounts, securities, safety deposit box contents, etc.), the more complex the process may be.
Federal Estate, Inheritance & Final Personal Income Taxes: Federal taxes may be owed on substantial estates, and each beneficiary of an estate may be liable to pay an inheritance tax on what they receive. Regulations vary, so the services of an attorney and/or tax consultant are recommended to ensure you are complying with current tax codes.
Other Considerations
Living Arrangement: If feasible, it's best to take some time before selling a home and/or moving. If you must sell, have the property appraised to determine its value.
Mail Fraud: Beware of packages from unscrupulous people who purport to be sending you something ordered before the deceased died. You have the right to refuse delivery of any suspicious items.
Telephone Listing: Sometimes changing your telephone listing can reveal that you are now living alone. It's best to keep the current listing, change it to your initials, or have your number unlisted.
Your Own Arrangements: Going through the loss of a loved one can often cause us to think about what we would do differently. Many people preplan their funerals in a sincere effort to help their loved ones. You can select the type of funeral you want and set aside the money to pay the expenses. Call your Selected Independent Funeral Homes member to discuss the process.
